Ok so my dad asked his friend to co sign for a duplex house and now he wont sign off of the loan we offered to pay him off first $1,000 then $5,000 he doesnt want to sign... His name is not on the deed actually he signed a paper signing out of the dead however his name appears on the loan so if we wanted to sale or refinance like we are trying to do we wont be able to without his signature! he says that if we stop paying the mortgage he doesnt care if it ruin his credit.. he wants the bank to repo the houses but he has never lived there so the ones that are being hurt are us.. see we have lived in that house for 20yrs and owned it for 3 anywhere that we turn to seems that no one wants to help everyone says there is nothing we can do.. But we dont loose hope there has to be something we can do?? What can we do in this case?? Is there a way to do something without him, hes never paid a dime towards the houses all he did was sign.. Please HELP!!
2007-08-06 10:14:32 · 5 answers · asked by ABC 3 in Business & Finance ➔ Renting & Real Estate
You are incorrect and so is your cosigner. You CAN refinance this loan without his agreement, if you are qualified to do so without a cosigner. If he has no ownership interest in the house, his legal status is merely that of a guarantor to your father's loan.
Your father does NOT need the guarantor's signature or permission to refinance this loan without this guy.
2007-08-06 10:19:44 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
In this case, you may need to seek an attorney. There are to many elements in this to give you a clear cut answer. First, being off the deed he is not legally on the property. However, he is on the loan. Contact a mortage broker thru a local branch or where you bank. Ask for a "new" loan. If the credit has been good you should be able to obtain a new loan without a cosigner. If the bank is requiring a co signer get a different person or entity to sign, pay off the old mortgage immediately and say adios. Or you can obtain a court order if your father can prove he has made all of the payments on time as agreed and the deed is free of the co signors name. Some cosignors do this as a coersion factor to get more money which is extortion, unless there is a seperate contractual agreement. In any case it is a process by which you must be diligent. The bank cannot repo the house without cause, number one is default. Unless there is proof that the co signor has no money in the property he/she is entitled to part of the proceeds, because you would not have been able to obtain the loan without the cosignor. It sounds like you need an attorney. Once you get an attorney involved it will do one of two things, either cool his heels or he'll obtain one and the attornies will do the battle put the $1,000 in a retainer fee and protect yourselves. Good luck, hope it works out.
2007-08-06 17:28:56 · answer #2 · answered by Seraphity 2 · 0⤊ 0⤋
If he isn't on the deed, why would you need his signature? Refinancing will pay off the loan.
Check with a real estate attorney.
2007-08-06 17:22:09 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
You don't need his signature to get another loan w/o him. he isn't on the deed and does not even have to be informed. Your dad can start taking care of this today.
2007-08-06 17:23:21 · answer #4 · answered by Elsa D 6 · 0⤊ 0⤋
If he is not on title then he doesn't need to sign anything in the new loan documentation. If you are refinancing rate and term meaning no cash out of the property than it shouldn't affect your new loan. If you do have him on title than its tough luck.
www.greatwestcapital.com
2007-08-06 17:20:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋