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    specklemoon's Avatar
    specklemoon Posts: 4, Reputation: 1
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    #1

    Sep 26, 2008, 12:18 PM
    Co-signer with a lien
    My co-signer has a lien against him for back child support. My loan is almost paid off and I will want to sell my home. Will support enforcement come after me for his back child support lien? His name is on the deed as a borrower, but my name is first. The deed says "and" not "or". When I sell, will his back child support lien be subtracted off the top from the sell of my home? My credit and our income together is how I got the loan. We have been friends for years and when the opportunity came to me to buy a home, he said he would help. So that's how he ended up on the deed. He does not live with me and has made no payments. This is my home and now I'm worried to death that I may have to pay thousands of dollar towards something I have nothing to do with. Is there a way out of this?
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
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    #2

    Sep 26, 2008, 12:30 PM

    A Co-signer is a guarantor on a loan. It means that should the primary signer default, the co-signer could be held responsible. Even if he was a co-borrower, that still wouldn't affect you unless he was listed on the deed as an owner of the property.

    People don't have a lien against them. A lien is placed on property and prevents the sale of that property until the lien is satisfied. So if he was a co-owner and the lien was placed against the property then it would have to be paid off before the property can be transferred. But if he wasn't on the deed then any liens against his property wouldn't affect you.
    this8384's Avatar
    this8384 Posts: 4,565, Reputation: 485
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    #3

    Sep 26, 2008, 02:56 PM

    Where is your friend's name listed? Is it on the loan paperwork only or did you actually list him as an owner on the deed? If his name is just on the loan, then you have nothing to worry about. But if you listed him on the deed, then you're in a real bind because the lien will need to be satisfied and someone is going to end up paying for it, whether it's you or him.
    specklemoon's Avatar
    specklemoon Posts: 4, Reputation: 1
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    #4

    Sep 26, 2008, 03:44 PM
    Quote Originally Posted by this8384 View Post
    Where is your friend's name listed? Is it on the loan paperwork only or did you actually list him as an owner on the deed? If his name is just on the loan, then you have nothing to worry about. But if you listed him on the deed, then you're in a real bind because the lien will need to be satisfied and someone is going to end up paying for it, whether it's you or him.
    Well, yes he is on the Deed of Trust, but not on the loan paperwork. I'm so confused. Can you tell I'm a first time home buyer? Only my name is on the loan but he did sign it as well. The paper work on the loan says my name, how much, what the loan is for (a home) and who the money was disbursed to. Can I change co-signers? Get him off the paper work and put someone else on it?
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    this8384 Posts: 4,565, Reputation: 485
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    #5

    Sep 26, 2008, 04:13 PM
    Now my head's spinning. If he's not on the loan...
    Quote Originally Posted by specklemoon View Post
    Well, yes he is on the Deed of Trust, but not on the loan paperwork.
    ... then for what possible reason would you have named him on the deed to the house?
    specklemoon's Avatar
    specklemoon Posts: 4, Reputation: 1
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    #6

    Sep 26, 2008, 05:21 PM

    I couldn't get the loan by myself. We've helped each other before with loans. I helped him get an auto loan with my good credit and his income. That's why when the opportunity came up to buy this home, he said he had no problem helping me. I have always been the primary on the loans. I should have questioned him signing the deed but honestly I thought he needed to because he was my co-signer. I see a lawyer in my future that's for sure.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
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    #7

    Sep 26, 2008, 05:56 PM

    Ok, this is really confusing and you need to find out exactly what's what. What matters here is whether he is on the deed as a part owner. Nothing else concerned with the loan matters.

    If he is listed as an owner, then its possible for a lien to be placed on his share. So you need to do a title search or check with your county clerk to find out whether he is listed as a part owner and whether a lien has been placed on the property. If he isn't an owner or no lien was placed, then you are free to sell. Otherwise, the lien has to be satisfied before you can sell.
    cdad's Avatar
    cdad Posts: 12,687, Reputation: 1438
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    #8

    Sep 26, 2008, 06:01 PM

    For starters has there been a lien recorded on the property ? What is his exact title on the deed ? Those things will tell the tale as to what's going to happen. Usually deeds are recorded with descriptions.. like single, joint, co, or. Those are the titles given. When you borrowed the money the loan company should have told you it should be recorded in your name only because you're the " principle " buyer and he is just there to make sure the banks get their money.
    specklemoon's Avatar
    specklemoon Posts: 4, Reputation: 1
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    #9

    Sep 26, 2008, 06:09 PM

    I just checked to see if he was listed on my property taxes. He is, and is listed as co-owner. I will take your advice and check with the county clerk to see if there is a lien against my home. Let's say there isn't, how do I get him off my deed. Can I change co-signers. Loan company's prefer 2 people on a loan for good reason, so I'm sure I will need somebody to be a co-signer. I appreciate your thoughts and direction, thank you
    stinawords's Avatar
    stinawords Posts: 2,071, Reputation: 150
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    #10

    Sep 26, 2008, 06:38 PM

    You can't just take him off. As far as the loan (which as pointed out the lien dosen't have anything to do with) the bank won't release him from it. As for the deed he would have to sign over his part to you provided that there isn't a lien on it. If there is then as said it has to be paid before anything else can be done.

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