Opti
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Post by Opti on Feb 7, 2011 12:12:17 GMT -5
GG the good thing about your situation is the house will still have a mortgage that is less than the value of the house. Unlike people who co-sign student loans, you have the option of getting repaid by selling the house if necessary.
Good luck to you both.
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Plain Old Petunia
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Post by Plain Old Petunia on Feb 7, 2011 12:13:40 GMT -5
Gardening Grandma, you're a smart lady, you have your finances in order, and this is your son. If you want to help him out, there is no reason you shouldn't.
Personally, I would not want to sign on the mortgage. I would investigate other avenues. How much would you have to give him to make the re-fi work on his own? Can you lend him enough to pay off his ex and record a second mortgage against the house? Do you want to just buy the house and rent it to him? None of these may be appealing to you, but I would explore other possible solutions first; signing my name on my son's mortgage would be my very last resort.
If you do decide to co-sign, I suggest you consider opening a joint account with ds and have the mortgage payments automatically paid from that account. Then you make certain that if son doesn't make a deposit, you make it yourself.
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Gardening Grandma
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Post by Gardening Grandma on Feb 7, 2011 13:20:37 GMT -5
Can you lend him enough to pay off his ex and record a second mortgage against the house?
Yes, but only if DH agrees. (Not his biological son). I doubt that he will agree, however. He doesn't like the idea of my co-signing but isn't strongly objecting. I plan to ask him, however if we could simply lend him the money (about $75K) secured by a lien or being added to the title.
Do you want to just buy the house and rent it to him? Not really. He wants to move anyway.
If you do decide to co-sign, I suggest you consider opening a joint account with ds and have the mortgage payments automatically paid from that account. Then you make certain that if son doesn't make a deposit, you make it yourself.
Excellent suggestion! Thank you.
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8 Bit WWBG
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Post by 8 Bit WWBG on Feb 7, 2011 13:58:25 GMT -5
...:::"If I do co-sign, I will get online access to the account so that I can verify that it's paid on time (he does have good credit, just not enough income to qualify). I will also make it clear to him that anytime there is a chance that payment might be late, he is to let me know and I'll front the payment or the difference for an IOU.":::...
Excellent precaution! This is one of the toughest things about being a co-signer. You don't always get notified of how things are going, and usually by the time you hear anything, its too late to fix easily.
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zibazinski
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Post by zibazinski on Feb 7, 2011 14:09:12 GMT -5
I'm confused as to why the house is not on the market now? If priced right, it should sell.
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Gardening Grandma
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Post by Gardening Grandma on Feb 7, 2011 14:22:26 GMT -5
I'm confused as to why the house is not on the market now? If priced right, it should sell.
Simple procrastination.... He's a terrific person and a great dad, but he IS a procrastinator. He's listing it this week.
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zibazinski
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Post by zibazinski on Feb 7, 2011 16:00:31 GMT -5
This may become moot then.
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Post by thinblue on Feb 7, 2011 16:44:58 GMT -5
If he plans on doing a refinance he shouldn't list it yet, especially if he is pulling out money in the transaction. Refi, then list.
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raeoflyte
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Post by raeoflyte on Feb 7, 2011 17:28:20 GMT -5
Ditto what Thinblue said--a refi will be tricky if not impossible if you list first.
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Gardening Grandma
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Post by Gardening Grandma on Feb 7, 2011 19:39:07 GMT -5
I don't follow. Why would it be tricky to refi if it's listed?
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Deleted
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Post by Deleted on Feb 8, 2011 4:17:50 GMT -5
OHHHH yes!
Both Thinblue and raeoflyte are correct. Your son is likely to have a problem getting a refi if the property is listed. And the appraiser will check to see if it's been listed.
Lenders have always considered "listed" property to be a higher risk. And right now with the whole buy and bail concern it's a real problem with cash out refis.
Tell him to hold off until you all make a decision about whether to refi or not. And hold off until the refi is closed.
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