A friend has been asked to cosign a mortgage for his son. The term of the mortgage is 30 years, but the loan officer says they only need a cosigner for one year. Has anyone ever heard of this? How can he protect himself so that he's not a cosigner for the entire mortgage. If it makes any difference, he's in Minnesota and the mortgage will be for property in Michigan. Thanks in advance!
The banker is giving you bull$hit. Once you are on the hook, you are on the hook until either the loan is paid off or you get a letter releasing you. Fat chance the bank will give up security.
The loan officer is lying. He's lying just to get your friend to sign the papers. Once they are signed, there's no way in hell that your friend will get off that mortgage. Tell your friend to run away from that situation. The loan officer only cares about one thing: getting the loan to close. They don't care about ruining your friend's credit. Think about it. The bank doesn't want to make a loan to the person, and that's what they do for a living. Why in the world would your friend take a risk that the bank wouldn't take? Your friend should help their son get his credit and finances in order so he can get the loan himself. That's a much bigger favor than co-signing for the loan.
They can "GIFT" a "LARGE" down payment... They would have to RE-FI if they are on the loan...to get their name off...
I think you guys are right. There are some other suspicious things going on here. The loan officer he had been working with quit a week or two ago and the new one came up with this cosigner requirement 12 days before closing. I don't know who's doing the mortgage, but I agree, it's time to run!
I was ask to cosign for 200k on a 30 year note. When I ask on the phone how long before my name can come off the mortgage the lender said 6 months to a year. Cool I naively thought. Strange that after asking me for W2 and parole statements, I asked for a written release in one years time. He stopped talking to me. When I called him a lair to his boss. The boss wanted to talk on the phone, I told him to write me in a email. Now the mortgage company ain't talking. My so call friend isn't talking to me neither after I lent him the 400 to start the ball rolling on the application. Dale Anyone need a loan? I know where the application fee has been already paid for
In a lot of states he can file a quit claim deed which would get him off the deed as for a co-signer he still would be on the hook for the loan i believe. So he should seek legal advice.
They may not even put him on the deed, just on the mortgage. And normally the only way a cosigner is going to be removed is to refinance the loan.
A little problem with that theory. The note is the negotiable instrument and the mortgage is the security instrument that secures the note. Both the signer and the cosigner will sign the note but maybe not the mortgage. Somewhere in the documents there will probably be an assignment to MERS (Mortgage Electronic Registry Systems) It will also assign MERS the right to foreclose in the event of foreclosure. Then the note will eventually be sold on the securities and exchange markets in tranches. This means that the mortgage and the note are effectively separated from each other. At the point where the tranches are securitized many investors become the owners and holders of the property and that may change hands many times as investors buy and sell investments in their portfolios. A foreclosure by MERS can be stopped or set aside in any state through the process of judicail estoppel. Even mortgages that have long ago been foreclosed on by MERS were nothing short of illegal foreclosures and MERS can be sued for illegal foreclosure. There is actually no statute of limitations on such foreclosures. They can be filed against and the case easily proven at any time. That means just one thing. There are millions of MERS foreclosures which are illegal and illegal foreclosures by MERS abound in every county of every state in the nation. If all homeowners who have ever been screwed by MERS filed suit against them the scandal would be far larger than anything that has ever hit the courts in U.S. history. Just for starters, MERS was founded and put into action by the owner of Countrywide Home Loans. Every Countrywide loan assigned their notes and mortgages to MERS as a matter of course and many other lenders did the same thing. Think the Madoff scandal is big? It is peanuts compared to the MERS scandal that might yet erupt on the national scene and if all homeowners ever screwed by MERS in an illegal foreclosure action wee to take it to the courts the scandal would be so great that it would virtually shut down the entire court system due to overburdening the courts with costs they could not pay to meet the challenge. At one point in time MERS has laid claim to having 34 million homes in their data base. I have a huge list of all the lenders who were ever part of the MERS membership so the problem is much, much larger than just Countrywide. Virtually every lender in America is a member of MERS regardless of size. The only question in any given foreclosure is whether or not MERS was the plaintiff in judical foreclosure states or the actual forecloser in non-judicial foreclosure states. If MERS foreclosed on any property that foreclosure can be attacked through judicial estoppel. Simple as that.
