Husband, Daughter being sued along with son in law

[Sandy53]

What is the name of your state (only U.S. law)? PA

About 10 years ago my husband co signed on a mortgage with my daughter because her soon to be husband had bad credit. They eventually got married and about two years ago they decided to consolodate thier bills and re mortgage the house. My husband agreed for the remortgage as long as his name would been taken off the deed . Son in law's credit wasn't in the crapper anymore. (he filed bankrupcy a year before they were married ) Papers were signed but the one that has the papers is the son in law ( soon to be ex ) They ( daughter and son in law) didn't go to change the deed out of my husbands name . The house is not on his credit report but my daughter left the husband . She agreed that as long as he paid the bills the house would be for him and the kids when he had them for visitation. Well we (husband and I ) took the kids on a cruise in Sept. and the son in law moved everything out . He never paid the mortgage, and other bills so now there is paperwork that the Mortgage is in Forclosure . My husband says that since the information is not on his credit report that he isn't involved. He (husband) told the daughter to just sign the house over to the mortgage company to satisfy them. What if the son in law doesn't sign ? My daughter tried to keep up with the bills but she is unemployeed so she just gave up. He on the other hand is working 2 (two) jobs, a full time and part time which adds up to close to 60-80 hours a week.
Even though we own our home and the bills are paid each month . I'm kind of worried we may need something in the future and this will prevent us from getting what we need.
Any ideas ?
Thanks,
Sandy

[FlyingRon]

The deed is a distinct issue from responsibility for the mortgage. Is his name on the refi'd mortgage? If not he has no responsibility even if he is on the deed. The foreclosure suit has to mention all the owners even if they aren't responsible for the note as they are going to lose their ownership interest in the process. It should have no impact on his credit.

If the mortgagee is willing to take the deed in lieu, all should sign it over. If the deadbeat son in law won't sign however, you're screwed.

[nextwife]

Originally Posted by FlyingRon

The deed is a distinct issue from responsibility for the mortgage. Is his name on the refi'd mortgage? If not he has no responsibility even if he is on the deed. The foreclosure suit has to mention all the owners even if they aren't responsible for the note as they are going to lose their ownership interest in the process. It should have no impact on his credit.

If the mortgagee is willing to take the deed in lieu, all should sign it over. If the deadbeat son in law won't sign however, you're screwed.

Has the lender AGREED to accept a DIL?

If daughter is on the mortgage she has an EQUAL responsibility to make certain the payments are made. She chose to leave the property, but that does not remove her responsibility to her lender. How hard has she been looking for a job? Is she at least working part tiome? What arrangments has she tried to make with her lender? Has she attempted to coodinate with her ex to get the house on the market and sold?

The bottom line is that the lender gave BOTH of them a loan, and both are equally co-responsible. The lender has a right to expect both parties to pay regardless of whether they decide they wish to remain a couple. SIL is not the only one that walked away from responsibility for this loan.

[Sandy53]

Originally Posted by FlyingRon

The deed is a distinct issue from responsibility for the mortgage. Is his name on the refi'd mortgage? If not he has no responsibility even if he is on the deed. The foreclosure suit has to mention all the owners even if they aren't responsible for the note as they are going to lose their ownership interest in the process. It should have no impact on his credit.

If the mortgagee is willing to take the deed in lieu, all should sign it over. If the deadbeat son in law won't sign however, you're screwed.

Thanks for the reply. I know the daughter and son in law didn't go to change the deed so I think it is still in my husbands name. I just told her to call the mortgage company and tell them she will sign it over to them. One less headache for her in the end ( and us )
Thanks again.
Sandy

[Sandy53]

Originally Posted by nextwife

Has the lender AGREED to accept a DIL?

If daughter is on the mortgage she has an EQUAL responsibility to make certain the payments are made. She chose to leave the property, but that does not remove her responsibility to her lender. How hard has she been looking for a job? Is she at least working part tiome? What arrangments has she tried to make with her lender? Has she attempted to coodinate with her ex to get the house on the market and sold?

The bottom line is that the lender gave BOTH of them a loan, and both are equally co-responsible. The lender has a right to expect both parties to pay regardless of whether they decide they wish to remain a couple. SIL is not the only one that walked away from responsibility for this loan.

Thanks for the reply.

If daughter is on the mortgage she has an EQUAL responsibility to make certain the payments are made. She chose to leave the property, but that does not remove her responsibility to her lender. How hard has she been looking for a job? Is she at least working part tiome? What arrangments has she tried to make with her lender? Has she attempted to coodinate with her ex to get the house on the market and sold?

Right now she is getting unemployment. Not looking much for a job because of all the court shenannigans that is going on she would lose it anyway. Before this started she was going for 911 call operator but lost that because of the stuff going on. She is going to wait till this gets straightened out. Before this she worked to keep up with everything but the (soon to be ex) really put her in a bind. Yes , the house is on the market but not too many people interested and as far as the ex co ordinating anything with her , he is not helpful at all.
Thanks Sandy