Can a co-signer of a home Legally have rights to the profits of a sold home without ever making payments?

Question

Does a co-signer of a home who has not ever made a single payment for the life of the loan have the rights to share the profits with the primary loan holders who have been making all payments, (with cancelled checks as proof) when the home gets sold. And if he is entitled to some of the profits, what percentage would he get? Also, What can be done if a cosigner refuses to be removed from the loan because he wants to profit off of a home that he has never paid a cent on?

Answer 1

If he is on the deed or the mortgage, more than likely.

Answer 2

Does the co-signer also have an interest in the house?
If there is a stipulation on the trust deed that says that the co-signer is doing so in return for an interest in the property, then yes they do.

If the co-signer refuses to be removed from a loan, the only option is to refinance without the co-signer.

If there is anything in the CONTRACT that says that the co-signer is anything more than a guarantor of the property, then yes, even if he/she did not pay a cent, they are entitled to whatever the contract stipulates they are to receive from the sale of the property.

Answer 3

It depends upon how you took title and if the cosigner is on title.

Honestly, I forget wich is which but there is "Joint Tenancy" and "Tenants in Common". Google either and you will have your answer.

I would NOT cosign on a house without being on title just to protect my $%^.

If they are NOT on title you can refinance without them and be clear.

Now you have an ethics issue to deal with.

As long as they have been a cosigner your loan as shown as a liability on their credit report and score. If they are "FAT" it probably wouldn't make much difference, but if they did you a favor at a "Credit expense" then you you might consider some "consideration" for their help.

I would suggest doing what is RIGHT because these things have a way of coming back on you later.

J

Answer 4

yes he can. in some states it is half. in you state i think it is a third. of the profits.
when a co signer refuses the only way is at [small claims] court.
then it will be up to the judge.

Answer 5

Check your deed. That's the only way a co-signer would be able to hold you hostage to this extortion.

If the co-signer is not on the deed. Then tell them to go take a p1$$

Answer 6

Yes, because they are half owner. It depends on the wording of the property deed-does it say joint tenancy or tenancy in common? If so, they legally own half and can actually sell the whole thing without the other person's knowledge or permission. I would suggest you speak to a property attorney.

Answer 7

No. The co-signer would have to prove a tort (a wrong), in this case the co-signer has not been wronged.

Answer 8

Doubt it.