I have a condo that I want to sell.
The only thing that concerns me is that I had co-signed on my father-in-law's business loan against my condo few years ago. (They didn't have a property to satisfy the bank to get a loan)
My father-in-law still has that loan, meaning his bank has my house as a lien as well as my mortgage company.
Will it be a problem to sell my house?
Thank you in advance for your answers.
2007-06-08 04:39:26 · 6 answers · asked by Judy J 1 in Business & Finance ➔ Renting & Real Estate
Yeah, that will be a BIG problem unless he pays off that loan first or manages to get your home removed from the loan as collateral. If he can't, you most likely won't be able to sell. Sorry.
2007-06-08 04:42:51 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
You can not sell untill this loan is paid or he secures a new loan. Ask him to refinance or to get a new loan.
Businesses are the worst risk in the loan market. If if has been established for many years and he shows that he has had it a few years or more and that it is making the same money or more, he may be able to get a loan through a band or mortgage. But they still may not want to loan money on a business if he does not have a history of being in business. Then the private loan is the only hope or find an investor to loan him the money and own a % of the business. Investors will come in and loan and attach 5-15% of the business (it all depends on how much money he needs).
I would never ever co-sign a business loan. This is one of the most risky loans as businesses close down all the time and they are a huge risk. Many things can go wrong with the business. And without coladeral the bank loses the money and can not recover it. So they take property to satisfy the loan and they will come after your condo if he misses a payment to them. Your condo is at risk and you should get it off this loan. Talk to him and push him to find another source of money so you can sell.
You will never be able to sell this condo until the lien is removed.
Good Luck
2007-06-08 04:56:22 · answer #2 · answered by Nevada Pokerqueen 6 · 0⤊ 0⤋
Yes, that will be a problem. You can sell the condo and pay off the loan if you want (and assumedly your father-in-law will now owe you the money). Then when you buy a new place your father-in-law could get a new loan and use your new place as the collateral, but this is expensive (extra closing fess for the extra loan), and you can only do this if you could afford the new place even without getting the money from selling the first place.
Is there any way your father-in-law could pay off the loan, or now take it on himself?
Better go talk to a bank to determine how much you could borrow on this situation and see what your options are.
2007-06-08 04:48:22 · answer #3 · answered by Slumlord 7 · 0⤊ 0⤋
Yes it will be a problem. You will have to pay-off your original loan and get a release of your property pledged for his loan. Your father in laws bank may give you a release if he has paid enough on his business, or they may want a certain amount of money to give the release. Start out by contacting his bank.
2007-06-08 04:45:02 · answer #4 · answered by Kathleen M 4 · 1⤊ 0⤋
If the property secures the loan then the loan will have to paid off or the bank will have to agree to release the condo as collateral.
2007-06-08 04:43:45 · answer #5 · answered by Anonymous · 0⤊ 3⤋
You have to clear the lien first. Have Dad refiniance on his own and that should do it.
2007-06-08 04:44:18 · answer #6 · answered by Landlord 7 · 1⤊ 0⤋