My~Cuz~n~Vinny~

Post Judgment should I be coborrower OR Cosigner when re-financing?

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Hi all! 

Been a couple years since post judgment on an alleged credit card default.

 

 If any could give some quick advice I'd a appreciate it.

 

So ..$10, 000 was the  judgment 2 years ago. They never pursued it further.

 

Wanted to refinance a mortgage. My wife has always kept her maiden name .....( you know like Mrs. Alicia Smith-Rodgers ) She has the house and property in her name since original purchase. I was the Co_ signer  some 10 years ago for the original loan in her name. Property is deeded only to her.

 

When asking to refinance the bank said no problem, but I noticed this is considered a whole new loan and they want me to be co-Borrower...Not Co- signer.

 

It is considered a joint loan although my wife applied for the loan only her self. Like last time , when I was a cosigner. 

 

 

So....should I keep it as cosigner for the new loan or joint borrower for the new loan to refinance mortgage?

 

 

Alleged default on Credit Card was only in my name. not hers .

 Thanks in advance

 

 

:eek:)

 

 

 

 

.

 

I found this

NOTE: If a married couple owns land jointly, all of the property (regardless of value) is exempt against debts owed by either husband or wife. (This protection does not apply to debts owed jointly by both husband and wife). If you are in this situation, you should talk to an attorney.

What about non-residential real estate or mobile homes?

Kentucky's residential exemption applies to any kind of residence. A mobile home is given the same exemption as residential real estate, $5,000 per person. If you own land but don’t live on it, however, the only exemption you’re allowed is the “personal property” exemption. (See information about this below).

 

What happens if I want to sell or refinance the property?

The judgment creditor’s lien may be satisfied out of the proceeds of refinance or sale. Sometimes this can be negotiated or dealt with through legal proceedings –you may wish to seek legal advice first.

 

 

Thanks CCRP626 !

 

Co-borrowers or co-signers cannot have financial interest in the property--meaning they can't own the property or borrow with the owner.

 

I am in CT. and mortgage is through a credit union.  I just worry they could try a lien if I was a joint contract as co-borrower.  Still A LITTLE FUZZY ON WHAT I JUST READ.

 

 

 

 

THANKS shellieh98 Yes I knew all that when  I cosigned last time. I don't mind that. I just wonder why the credit union keeps telling me that it is no problem that coborrower and cosigner are the same thing on this new loan (mortgage refinance).  From what I could see is what you guys see as well, i should make it as COSIGNER. They had no problem okaying the new loan .  But from what I see it should not be coborrwer on a joint loan. I mean my wife already purchased the first loan with myself only being cosigner. Now they want me to be joint loan which is making my ......spidey sense tingle LoL

Edited by My~Cuz~n~Vinny~

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I'd say check with an attorney and focus on Connecticut laws unless this is Kentucky. It sounds like keep it co-signer is the way to go. Co-borrower giving you title may cause problems later when the house is sold and the judgment is pursued. Bankruptcy may be handled differently as well for co-signer vs. co-borrower.

 

See if this helps

http://www.fha.com/fha_article?id=239

 

In the eyes of the FHA and your lender, these are two separate things. Co-signers don't have the same benefits as co-borrowers, though they may share the same responsibilities in many cases.

The FHA official site says, "Co- borrowers take title to the property and are obligated on the mortgage note and must also sign the security instrument. The co-borrower's income, assets, liabilities, and credit history are considered in determining creditworthiness."

That isn't the same as the FHA requirements for a co-signer, who does not have interest in the property purchased with an FHA insured mortgage. Even so, the co-signer does have responsibility on the loan.

The FHA states, "Co-signers do not hold ownership interest in a property, but are liable for repaying the obligation and must sign all documents with the exception of the security instruments. The co-signers income, assets, liabilities, and credit history are considered in determining creditworthiness for the mortgage and the co-signer must complete and sign the loan application."

Co-borrowers or co-signers cannot have financial interest in the property--meaning they can't own the property or borrow with the owner. The same rule applies to the builder, real estate agent, any "interested parties" that could profit from the sale of the home.

That said, the FHA does provide an exception to this rule, which states;

"Exceptions may be granted if the seller and co-borrower/co-signer is related to the owner by blood, marriage or law."

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As co signer you are guaranteeing the loan should she default. They usually want someone with stellar credit to be a consigned. Should you ever divorce, she gets the house, and you get the payments if she defaults. You gave no protection. (Just saying) that is if you even qualify.

Co borrower you get half the house, half the debt. Depending on your states laws as to weather the judgement holders being able to place a lein if it's partially in your name.

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