Check out some similar questions!

Goldenwop2007 · Jul 9, 2007, 03:37 PM

DEAR EVERYONE,

SHOULD I GET A LAWYER?

A friend of mine co-signed on a trailor (mobile home) nearly ten years ago. She hasn't lived in the home ever. Her sister was living in the mobile home and has 10 years worth of payments made.

Her sister decided to up and move and abandon the mobile home. Without warning my friend found out that the mobile home was abonded and now is responsible for a possible respossesion.

The debt is too big for my friend to handle at this time. What should she do?

Should she get a lawyer and try to sue the sister?
Should she just file bankruptcy?
Looking for advice thank you.

excon · Jul 9, 2007, 03:49 PM

Hello Golden:

She should try to sell it. You did say POSSIBLE repossession, didn't you? IF she owes more than it's worth, then she can sue her sister, although the sister probably has nothing. Filing bankruptcy would be like swatting a fly with dynamite.

excon

yogibuck · Jul 26, 2007, 06:44 AM

How much is the property worth?

How much is owed?

If it is worth more than is owed, and you would think it would be after 10 years of payments, go to the note holder, explain what happened and ask if she can make good on the back payments. (not the entire balance due)

Read the mortgage (or have an attorney if you don't understand) and see what the terms are. It should spell out what your able to do to get current. Maybe if she does that it will give enough time to at least sell it without dumping it.

Foreclosure is typically expensive (at minimum a hassle) for the loan holder so you may find them willing to work with you.

If you can't work with the lender, find someone with cash who is able to work fast. You will have to discount it substantially.

If the property is upside down, walk away. If it is a bank, it will definitely hurt your friends credit rating.

ScottGem · Jul 26, 2007, 07:29 AM

You say she co-signed on the loan. Does she have any ownership interest in the home? As a co-signer she may not.

She should try to sell it, but she will probably need the sister for that. In the meantime, she should try to make payments to forestall the repo. If the home is repo'ed, they will sell it at auction and your friend will still be responsible for the balance if its sold for less than what is due.

Though, if pmts were made for 10 years its possible the sale will cover the balance.