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    Justin41's Avatar
    Justin41 Posts: 2, Reputation: 1
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    #1

    Nov 9, 2009, 06:00 PM
    Want to sell home, buy another, but Co-Signed for friend worries me
    Hello Everyone:

    I have a home that is almost paid for. I want to sell it to have a good down payment to buy another home with my longtime girlfriend. The catch is that I co-signed for a friend a few years back on a home for him. The economy is hurting the business he is in, and I worry about what happens if the worst were to happen and he was no longer able to make payments. He is currently trying to sell the home, and after many price drops there are still no takers.

    I know that my co-signed obligations would be realized, and I could help with payments for a short term, but that would be it. Worst case would be if the home went into foreclosure and the lender comes to me to make up any difference after the sale of the home (My friend lives in a recourse state).

    So then the question becomes: Would the home that I want to buy with my girlfriend be at risk to the lender? I do not want to involve my girlfriend obviously, but I do also want to go on with my own life.

    Thanks for any thoughts, ideas, knowledge.

    Justin
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Nov 10, 2009, 07:51 AM

    Hello J:

    If you default on your co-signed mortgage, the lender can come after ANY asset you own.

    excon
    Justin41's Avatar
    Justin41 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Nov 10, 2009, 05:06 PM
    Thanks excon,

    I wondered as much. Just don't know what to do now... Guess it means if my friend forecloses I lose my assets too and there doesn't seem to be much I can do about it. That's one hard lesson learned.

    Justin
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Nov 10, 2009, 05:47 PM

    You need to be in communication with him and do what you can to help with the sell
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