Foreclosure

[Croton]

What is the name of your state?What is the name of your state? Iowa

My wife and I cosigned on a mortgage loan so that my son could buy his first home. He experienced finacial difficulties and fell behind on his payments and did not tell us. The mortgage company initiated foreclosure without notifying me or my wife. To keep my son from losing his home I had to pay the back payments and penalties plus forclosure fees. It is their proceeding with the foreclosure without first giving me a notification that I find upsetting because I never would have let it get that far. It does not seem right to me. We were left in the dark and it did damage to our credit? Can they do this without first giving the cosigner a notification? If they can not what would be the remedy?

[I AM ALWAYS LIABLE]

Originally Posted by Croton

What is the name of your state?What is the name of your state? Iowa

My wife and I cosigned on a mortgage loan so that my son could buy his first home. He experienced finacial difficulties and fell behind on his payments and did not tell us. The mortgage company initiated foreclosure without notifying me or my wife. To keep my son from losing his home I had to pay the back payments and penalties plus forclosure fees. It is their proceeding with the foreclosure without first giving me a notification that I find upsetting because I never would have let it get that far. It does not seem right to me. We were left in the dark and it did damage to our credit? Can they do this without first giving the cosigner a notification? If they can not what would be the remedy?

My response:

You're just the cosigner, not the owner. The bank is under no obligation to inform you of the foreclosure. Your son is the owner, and the bank's obligation is to your son, and vice-versa. It's your own son who "let you down", not the bank.

Take it out on your son.

IAAL

[eajonesyk2]

Check out the thread titled "Father cosigned for daughter now in default".

One of the questions I asked was this:

Q: Is it likely they will try to contact him(the father who cosigned) before starting the foreclosing process?

A: GENERALLY the rule is that the mortgagors must be notified at the address on the deed of trust or mortgage.

In other words they will only send the foreclosure notice to the house address that the loan was granted for. My father will be wondering now if my sister has received such a notice and failed to tell him like she failed to tell him that she and her husband haven't made any house payments for the last four months. My father only learned of the payment lapse because his insurance company raised his rates due to negative credit info. After investigating the source of the negative credit info he learned of the past due payments.

He is very sorry for giving in and cosigning on that loan.

Originally Posted by Croton

What is the name of your state?What is the name of your state? Iowa

My wife and I cosigned on a mortgage loan so that my son could buy his first home. He experienced finacial difficulties and fell behind on his payments and did not tell us. The mortgage company initiated foreclosure without notifying me or my wife. To keep my son from losing his home I had to pay the back payments and penalties plus forclosure fees. It is their proceeding with the foreclosure without first giving me a notification that I find upsetting because I never would have let it get that far. It does not seem right to me. We were left in the dark and it did damage to our credit? Can they do this without first giving the cosigner a notification? If they can not what would be the remedy?

[url]http://www.foreclosureassistance.com/states/iowa.html[/url]

[url]http://www.km-law.com/faq.htm[/url]

[url]http://www.uslossmitigation.com/foreclosure_listing.php?state=IA[/url]