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riku · Aug 4, 2008, 06:30 AM

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.

danielnoahsmommy · Aug 4, 2008, 06:32 AM

They are not entitled legally to money. But morally they are entitled to something. But it is unenforceable without a contract

LisaB4657 · Aug 4, 2008, 06:34 AM

Was the co-signer also listed on the deed? If the co-signer was listed on the deed then they are a co-owner and they should be legally entitled to some of the money from the sale.

riku · Aug 4, 2008, 06:52 AM

Originally Posted by LisaB4657

Was the co-signer also listed on the deed? If the co-signer was listed on the deed then they are a co-owner and they should be legally entitled to some of the money from the sale.

I received a copy of the sale of the home from the county. It lists my family member as one of the guarantors (along with the husband and wife). It also doesn't have her real signature on the deed. It has someone else signing it and it says something like "as her attorney".

I am asking these questions because this family member is a senior, she now has no savings, and after the sale of the home, she was left homeless. I (and other family members) came up with money to house her. We couldn't figure out where her savings all went to, and now we know. So, I was thinking that if she was entitled to 1/2 of the profits from the sale of the house, then we should probably get a lawyer so she could get some of her money back.

I just started looking into all of this today.

LisaB4657 · Aug 4, 2008, 06:56 AM

She should absolutely get an attorney. If her signature was required on the deed then most likely she was listed as a co-owner. It should not be necessary for someone to sign a deed if they were merely a guarantor.

Get her an attorney who specializes in elder care law. Get one TODAY.

LisaB4657 · Aug 4, 2008, 06:56 AM

She should absolutely get an attorney. If her signature was required on the deed then most likely she was listed as a co-owner. It should not be necessary for someone to sign a deed if they were merely a guarantor.

Get her an attorney who specializes in elder care law. Get one TODAY.