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Co-Signer on my house is trying to make me sell or refinance

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RochelleGonzalez

Guest
My grandfather co-signed for me on the purchase of my home 5 years ago, and again for a refinance 2 years ago. He is now let his son, my uncle, take over his financial affairs. I received a letter from my grandfather stating that I have to either refinance my home and remove him from the loan and title, or sell the home and give him his share of the proceeds.

There is no equity in our home and we probably couldn't even break even if we got realator involved. We are not able to refinance due to our credit, I have three letters of denials from finance companies, and we do not even want to entertain the possibility of selling our home. He Has helped us with the monthly payments and now states he will not do that anymore.

We are contiplating bankruptcy due to some of our other bills, and some major medical bills, if we bankrupt could that stop him, or does he even have any right to request what he is requesting? Please let me know!

p.s. we are all on title as joint tenants. If he passes away does the property automatically revert to my husband and I, or can he will his share to my uncle?
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by RochelleGonzalez:
My grandfather co-signed for me on the purchase of my home 5 years ago, and again for a refinance 2 years ago. He is now let his son, my uncle, take over his financial affairs. I received a letter from my grandfather stating that I have to either refinance my home and remove him from the loan and title, or sell the home and give him his share of the proceeds.

There is no equity in our home and we probably couldn't even break even if we got realator involved. We are not able to refinance due to our credit, I have three letters of denials from finance companies, and we do not even want to entertain the possibility of selling our home. He Has helped us with the monthly payments and now states he will not do that anymore.

We are contiplating bankruptcy due to some of our other bills, and some major medical bills, if we bankrupt could that stop him, or does he even have any right to request what he is requesting? Please let me know!

p.s. we are all on title as joint tenants. If he passes away does the property automatically revert to my husband and I, or can he will his share to my uncle?
<HR></BLOCKQUOTE>

Unless you have previously agreed to refinance or sell, you have no legal obligation to do so. A moral one yes. Due to the circumstances it makes no sense to refinance or sell if your credit is bad and there is no equity in the property.

Under joint tenancy, upon his passing, his share automatically goes to the remaining tenants/owners which would be you and your husband. He should have selected tenancy-in-common if he wanted his son to get his share of the property.

If you can not make the mortgage payments, in most cases you will lose the home even if you file bankruptcy. The secured creditor is the mortgage company and they would petition the bankruptcy trustee to sell the property to pay the mortgage off. Different states have different homestead laws so check with a local bankruptcy attorney with respect to your options.
 
T

Tracey

Guest
Very succinct HomeGuru!

Inform your uncle that if you sell the house, gramps will end up OWING money, not making it. This may cool his jets. Since gramps is on the title, he can force a partition by sale. However, it would be monumentally stupid for him to do so, since the broker fees, attorney fees, & court costs would put him even deeper in the hole!

Talk to the BK lawyer to see if you can declare BK, still make payments on the house, wipe out the medical bills, & the bank can't call in the loan.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
 

HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Tracey:
Very succinct HomeGuru!

Inform your uncle that if you sell the house, gramps will end up OWING money, not making it. This may cool his jets. Since gramps is on the title, he can force a partition by sale. However, it would be monumentally stupid for him to do so, since the broker fees, attorney fees, & court costs would put him even deeper in the hole!

Talk to the BK lawyer to see if you can declare BK, still make payments on the house, wipe out the medical bills, & the bank can't call in the loan.

<HR></BLOCKQUOTE>

What Tracey has mentioned on the BK issue is called Chapter 13 reorganization. It may possibly work for you as long as you continue to make the mortgage payments or renegotiate with the bank to have them approve a lower P & I payment through an interest rate or loan adjustment. The bank is in the lending business and not the property management business so they would rather work with you as opposed to taking the property and selling it especially if there is no equity. If you need further info on bankruptcy, please use the FreeAdvice Bankruptcy Bulletin Board.
 

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