Is it wrong to serve as the guarantor on mortgages because these people have bad credit?

Question

I just ran my husband's credit and he is listed under three properties, which I know are not ours. I know his brother is a scam artist and is in the mortagage broker business. My husband also listed himself as single. Can he get in trouble for this?

Answer 1

Sounds like your husband's identity is being stolen by his brother. Since this could potentially effect you financially... I would alert the authorities.

Answer 2

It is not wrong to serve as guarantor on mortgages. You may do this as many times as a lender will accept your credit and you are qualified to do so.

Now about your husband signing as single, this is a different story, if you are in a commmunity property state, a married couple is required to sign on all property one of the two purchase.

If one of the two do not want to be added to the property, the one that will not be on the property is normally required to sign a quit claim deed indicating they want no part of the property.

If your husband is representing a corporation he does not need your signature.

Is is looked on unfavorable for a married person to sign as single in community property states, this is called fraud and says so on the loan application. Thou this might be a small thing if could affect if the lender will take this person as the guarantor on any particular loan.

Now as to what he is doing I would not speculate. He could be in the house flipping business with his brother legally.

Now there are scams involved in the flipping business and in some instances they could result in financial difficulties as well as jail time for the participants.

You will have to find out what is involvement is in these properties. You might also tell him that unless the programs are legal he is putting his family at a financial risk, no matter what anyone is telling him.

The bottom line is if this is an illegal operation, yes he can get in big trouble.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

No.

He is in a very precarious position as he is ultimately responsible if these notes go into default (always likely with poor credit history). You could lose everything, however, there is not an easy way out. Basically, the people who have used him as guarantor need to secure their own financing. This will get him off of the hook for these loans. The single designation is basic fraud and could cost you significant coin if it is discovered.

There is the possibility, although I think it unlikely, that your husband is unaware that he is the guarantor. In this instance you and your husband will need to take legal action to secure your freeedom from financial ruin. You and your husband need to have a serious talk.

P.S. There is nothing illegal about being the guarantor on mortgage notes, it is incredibly unwise to do, though.

Answer 4

he can if they're buying the homes, doing a little work and flubbing the appraisal to be more tahn it's actually worth. That's imbezzlement. You'd better nip this in the bud right now. I have a few friends that were roped into this and the FBI showed up one day and now they're fighting for their freedom from prison. They've lost their jobs as a result. They'll freeze your bank accounts, no matter if they were used or not, and you'll be forced to find money somehow to pay your bills. I'm not playing!!!! Stop this NOW befoer he drags you down with him!!!!!

Answer 5

It might be considered mortgage fraud and your husband would a willing participant! It's called Jail Time! I suggest he get himself an attorney right away. He is liable as an owner of those properties and anything that might be going on there, if illegal, I'm thinking meth labs, you just never know. Your husband is risking your and his. Get a lawyer!