Cosigner trouble

[jt123mim]

What is the name of your state?California
I have a problem. I had my brother cosign on my property two years ago and now he is in financial trouble. I had him taken off the title but he is still on the loan. Will his name on my loan and his bad credit effect my credit? I was told the only way to get his name off the loan was to refinance. What should I do? Also can creditors come after me and my property if his name is off the title?

 

[HomeGuru]

What is the name of your state?California
I have a problem. I had my brother cosign on my property two years ago and now he is in financial trouble. I had him taken off the title but he is still on the loan. Will his name on my loan and his bad credit effect my credit?

**A: no, unless you do not pay your mortgage payments in full and on time.
*********
I was told the only way to get his name off the loan was to refinance. What should I do?

**A: you already know; refinance.
******

Also can creditors come after me and my property if his name is off the title?

**A: of course, since title is different from mortgage.

 

[jt123mim]

Thank You for your reply. I did not want to refinance just yet, but if his creditors can ruin my credit because of the connection on the loan it looks like I have no other alternative.

 

[jt123mim]

Regarding creditors: Attention Homeguru

Homeguru, I know you had already answered my question on creditors, yet I wanted to make clear on what you wrote about on the issue of my brothers creditors being able to come after me for payments on his debts because he is on my home loan as a cosigner, and not on the title. Is this correct?

 

[HomeGuru]

Homeguru, I know you had already answered my question on creditors, yet I wanted to make clear on what you wrote about on the issue of my brothers creditors being able to come after me for payments on his debts because he is on my home loan as a cosigner, and not on the title. Is this correct?

**A: only the creditors on "joint" accounts can go after you such as your mortgage lender. EX: If he has a credit card or loan solely in his name and not co-signed by you, then you are safe unless he defaults. If he defaults, the creditor can litigate and get a judgement against him and in some cases may record the judgement as a lien on the real estate and foreclose on said lien. Being that title is not in his name any longer, you are somewhat protected. I say somewhat because if brother where to file BK, the Trustee is going to want to know why the title transfer occured to determine if such a transfer was fradulent.

 

[jt123mim]

Thank You.

 

[HomeGuru]

You're welcome.