Refinancing nightmare

[DonnyCrane]

Question from MA.
Here is my dilemma:
My brother, and my mother bought a duplex. My brother has taken equity out of the house several times to buy him, and his wife their own home, and to pay his bad debts. I now live in the house with my mother, with a tenant on the other side. My mother wants to refinance the house while the rates are low to pay for some needed repairs, save thousands in interest, and pay the house off in 20 years instead of the 30 my brother has now gotten the mortgage up to. She needs me with my good credit to co-sign for the loan. My brother, who is half-owner, recently declared bankruptcy. The mortgage company said, because of his debts, we can't refinance unless, as they suggest, we absorb his debts into the mortgage to pay it off, and get him out of bankruptcy, which would then add 450 dollars a month for the next 20 years to our mortgage. It would be his responsibility to pay 450 dollars every month for the next 20 years while my mother and I, and our tenant would pay the rest of the monthly mortgage payments. He got us into this mess by living beyond his means, and making terrible business decisions. I have no reason whatsoever to believe he will make his monthly payments over the next year, never mind the next 20. I think his 450 dollars is too much to add to the monthly payments, especially, if he is delinquent in paying my mother and I the money. Is there any other way to refinance, without taking on his debt/financial problems? How can I protect myself? I want to help my mother, but not at the risk of my good credit, and peace of mind.

[swrdmbo]

The only way I could see this happening is if you could buy the house from your Mother and brother.Then maybe your Mom could co-sign on your loan.

This would accomplish two things...it would get your brother off the deed, and he would no longer have any rights in the property, and it would eliminate the need to pay off his bankruptcy.

When the home is in your name you could then have the deed made into a survivorship deed, listing you and your Mother as Grantees ( You being the Grantor).

I would play hard ball with your brother and try to shame him into selling you the house at whatever the mortgage is now, since he benefited from all the equity...ask him where your Mom's half went?

Good luck.

P.S. Under NO circumstances should your brother be on the new deed,

[DonnyCrane]

Thanks for your response, swrdmbo. Unfortunately, I can't afford to buy the house, and I don't really want to. I don't care for the house or the neighborhood.
I agree that he should be shamed into giving it up, except he has no shame, and when I call him to try to reason with him, he hangs up in my face, and threatens to put a restraining order on me if I don't stop calling his home.
I also agree with you that I can't go into this with his name on the deed. That would be financial suicide.

[HomeGuru]

Originally Posted by DonnyCrane

Question from MA.
Here is my dilemma:
My brother, and my mother bought a duplex. My brother has taken equity out of the house several times to buy him, and his wife their own home, and to pay his bad debts. I now live in the house with my mother, with a tenant on the other side. My mother wants to refinance the house while the rates are low to pay for some needed repairs, save thousands in interest, and pay the house off in 20 years instead of the 30 my brother has now gotten the mortgage up to. She needs me with my good credit to co-sign for the loan. My brother, who is half-owner, recently declared bankruptcy. The mortgage company said, because of his debts, we can't refinance unless, as they suggest, we absorb his debts into the mortgage to pay it off, and get him out of bankruptcy, which would then add 450 dollars a month for the next 20 years to our mortgage. It would be his responsibility to pay 450 dollars every month for the next 20 years while my mother and I, and our tenant would pay the rest of the monthly mortgage payments. He got us into this mess by living beyond his means, and making terrible business decisions. I have no reason whatsoever to believe he will make his monthly payments over the next year, never mind the next 20. I think his 450 dollars is too much to add to the monthly payments, especially, if he is delinquent in paying my mother and I the money. Is there any other way to refinance, without taking on his debt/financial problems? How can I protect myself? I want to help my mother, but not at the risk of my good credit, and peace of mind.

**A: you can protect yourself by not getting involved in the deal.

[DonnyCrane]

Originally Posted by HomeGuru

**A: you can protect yourself by not getting involved in the deal.

I know. I keep having these anguished conversations with my mother about how trapped this situation is making me feel. She claims if I don't do it, then the house, and it's equity is tied up in my brother's bankruptcy with no way out, and it will take that much longer to pay off the mortgage. There goes my inheritance. My older brother has been a dark cloud over my life since the day I came into this world.
She's telling me to write up a list of demands that my brother needs to sign to protect myself, but I explained to her that it would be as useless as wet toilet paper if the document isn't legally binding.

[HomeGuru]

Originally Posted by DonnyCrane

I know. I keep having these anguished conversations with my mother about how trapped this situation is making me feel. She claims if I don't do it, then the house, and it's equity is tied up in my brother's bankruptcy with no way out, and it will take that much longer to pay off the mortgage. There goes my inheritance. My older brother has been a dark cloud over my life since the day I came into this world.
She's telling me to write up a list of demands that my brother needs to sign to protect myself, but I explained to her that it would be as useless as wet toilet paper if the document isn't legally binding.

**A: it is time for Mom to get an attorney. Good luck.

[DonnyCrane]

Originally Posted by HomeGuru

**A: it is time for Mom to get an attorney. Good luck.

Exactly. I called one this morning. Thanks for taking the time to reply.