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The cosigner has the right to file a lawsuit against the primary borrower's to recover his or her financial losses due to the defaulted lending agreement. The procurement of a second mortgage does not seem viable if the primary borrower's credit was not originally sufficient for them to obtain the loan without the need of a cosigner. It is more likely the house will have to be forfeited by means of foreclosure and the cosigner will have to try to recover losses by other means. The primary borrower's best choice is to obtain legal advice as to what their options are before a lawsuit is filed against them.

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โˆ™ 2006-04-16 13:14:15
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Q: What are the rights of borrowers when the cosigner is considering a lawsuit to force them to take a second mortgage so the cosigner can recover money paid because the mortgage was defaulted on?
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Related Questions

How can one remove a cosigner from an equity loan if the cosigner is not on the first mortgage title?

The title has nothing to do with the loan. The loan will need to be refinanced using a different cosigner or only the primary borrowers.


What are the legal rights of a cosigner on a mortgage?

legal rights of cosigner on mortgage


If we have bad credit will a cosigner help us get a mortgage?

Yes, a person with bad credit can get a cosigner for a mortgage. The cosigner will have to have excellent credit and must go into the office to sign papers to become a cosigner.


Does the cosigner on a mortgage need to be on the purchase and sale so the seller is aware of a cosigner?

That is an issue between the mortgage company, the buyer and the cosigner. The seller's only worry is selling the property and getting paid.


What is the procedure to sue to be released from a mortgage as a cosigner?

There is no procedure for this. The mortgage must be refinanced.


Does a co signer have the right to borrow against and raise the amount of your line of credit?

A cosigner can only raise a line of credit on a home mortgage if both borrowers sign. Borrower and co borrower. It cannot be done by only one.


What are the dangers of a second mortgage foreclosure?

The biggest problem with second mortgage foreclosures is that you can lose your home even if you are still current on your first mortgage. The second mortgage, if defaulted on supersedes you first mortgage.


Which document represents the borrowers promise to repay the loan?

Mortgage


If 2 people cosign as borrowers for a mortgage how can you get one person off the mortgage if they aren't making any payments?

The only way to remove a borrower from a mortgage is to refinance the mortgage.


What are your rights as a mortgage cosigner?

If you are not an owner of the property, as a co-signer you are fully responsible for paying the mortgage. You have no other rights in the property.


How do defaulted homeowner loans affect bad credit?

Defaulted homeowner loans affect bad credit because it wont allow one to get a mortgage or another loan. Most banks and loan lending companies wont offer one a mortgage or a loan because one had taken defaulted homeowner loans.


If you refinance the house after a year can you take the cosigner off the mortgage loan?

Yes.


What are the disadvantages of cosigning on a mortgage?

If the primary borrower defaults the cosigner can get "stuck" with a huge debt and ruined credit. A cosigner has the same legal obligation to repay a loan as does the primary borrower. In addition, a cosigner does not have property owner rights, only the debt. The real question is why would anyone agree to pay a mortgage for land they do not own. A co-signer has an equal obligation to pay the mortgage.


If an adult child is a cosigner on the mortgage to her parents' home can she be relieved of the debt responsibility when she marries?

The mortgage would have to be refinanced without the participation of the adult child as cosigner. Debts incurred before marriage do not become the responsibility of a new spouse.


How do you get the PMI company to pay off the mortgage after the death of one of the borrowers?

Unless you had mortgage insurance, the surviving borrower is responsible for paying the mortgage. If the mortgage isn't paid the lender will take possession of the property by foreclosure.


Does a cosigner on a mortgage mean that person is an owner of the property?

Yes it does, Only after you refinance the property may you take the cosigners name of the mortgage loan.


What does the term bad debt mortgage mean?

The term 'bad debt mortgage' implies that the borrower has applied for a mortgage and been accepted. However, the borrower has then defaulted on his mortgage payments and it is considered that they are unlikely to be able to repay the loan.


If the cosigner of a home loan dies will the bank go after his estate for repayment?

My belief is that as long as the mortgage is paid on time by the borrower, there would be no reason to go after the cosigner estate.


How do you know if your lender bought your mortgage as a bad debt?

Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.Perhaps if they bought it after you defaulted or had a history of late or missed payments.


Can a mortgage company put a lien on my moms paid off home if she is a cosigner for my mortgage that is deliquent?

Yes, the mortgage company can do that. She co-signed for the loan and is responsible for it if you don't pay. She can lose her house.


Why Every Homeowner Should Consider Mortgage Refinancing?

Mortgage refinancing is one of the easiest ways for homeowners to save money each and every month. Borrowers who took out a mortgage during the height of the housing bubble may be paying as much as 8% interest on their home mortgage. Borrowers are now able to lower their monthly mortgage payment by hundreds of dollars thanks to low interest rates being offered by banks. One of the reasons many homeowners have not considered mortgage refinancing is due to the costs involved. Closing costs include application fees, mortgage insurance, points and legal fees. Points are calculated as a percentage of your loan. For example, if you have a $200,000 home mortgage and the lender requires 1 point you would have to pay $2000 in points. Application fees, mortgage insurance and legal fees vary from lender to lender. Borrowers often believe that the legal fees will outweigh the amount that they can save. This is rarely true. For example, if your loan cost $5,000 to refinance you would be able to see savings in just ten months with a $500 a month payment reduction. Borrowers should calculate how long it will take them to see savings on their home mortgage. Most borrowers are able to save thousands of dollars over the course of their home mortgage by refinancing. Lender expenses are another cost factor in mortgage refinancing. Attorneys fees will be included in your mortgage refinancing. These are legal costs that a mortgage company has to pay when refinancing your mortgage. Points are included in your expenses as well. Prepayment penalties will be included in your mortgage refinance. Make sure to review your mortgage documents for your existing mortgage to determine whether or not you are subject to a prepayment penalty. Borrowers also should refinance their mortgage if they can afford to make larger payments over a smaller term. Decreasing the term of your home mortgage enables a borrower to be able to pay less interest as well as pay off their mortgage faster. Borrowers also can increase the length of their mortgage if they have a lower income. Borrowers should consider the costs of both of these actions before proceeding. Refinancing your mortgage can be an excellent opportunity to save yourself both time and money. Being able to save thousands of dollars a year means borrowers can have extra money to pay for other expenses. Refinancing your mortgage is more affordable than many homeowners might believe.


What is a LP Mortgage?

LP Stands for Loan Prospector, This is a full feedback Certificate , under Freddie Mac reflecting the borrowers eligibility or restrictions on a refi or purchase and debt to income ratios or type of mortgage to evalute borrowers ability to qualify for a loan under freddie Mac


Does the bank still collect from a deceased co signers estate if the property was sold?

The bank has a lien on a mortgaged property that is not affected by a transfer of the property. The bank will go after the decedent's estate and the cosigner for payment of the mortgage. If the mortgage isn't paid the bank will take possession of the property by a foreclosure.The bank has a lien on a mortgaged property that is not affected by a transfer of the property. The bank will go after the decedent's estate and the cosigner for payment of the mortgage. If the mortgage isn't paid the bank will take possession of the property by a foreclosure.The bank has a lien on a mortgaged property that is not affected by a transfer of the property. The bank will go after the decedent's estate and the cosigner for payment of the mortgage. If the mortgage isn't paid the bank will take possession of the property by a foreclosure.The bank has a lien on a mortgaged property that is not affected by a transfer of the property. The bank will go after the decedent's estate and the cosigner for payment of the mortgage. If the mortgage isn't paid the bank will take possession of the property by a foreclosure.


What is a bank foreclosure?

It when your mortgage to the bank has been defaulted on and they decide to take back your home to compensate for their lost money.


Which mortgage loans require mortgage insurance?

FHA Loans is the one who required mortgage insurance as in protection to the banks and lenders. While in conventional loan, PMI or private mortgage insurance is required for those borrowers with less than 20% equity.