Does a cosigner receive money at selling of house?
If someone cosigns on a home, then the house is later sold, does that cosigner have any legal rights to 1/2 of the sale?
Specifically, someone I know cosigned for a refinance on a property. The original owners couldn't refinance on their own because of bad credit. The owners later sold the home (the cosigner's name was also listed on the sale). Did the cosigner have any legal rights to 1/2 of the money made on the sale of the house?
I'm trying to find out if a family member got "ripped off" by the home owners. This family member not only cosigned on the house, but also gave lots of money over the years to help out the home owners with the house. My family member also lived in this house and paid the utilities plus a monthly payment to the home owners. I know that my family member didn't have any type of contract stating that her money would be returned when the house was sold. Just a verbal, "we'll pay you back when we sell the house" type of thing. Of course she wasn't paid back. There was also no type of rental contract.
TIA.