Legal Question in Real Estate Law in California
My son has a home and is going to sell the house to a baby day care giver, but he will keep the original loan in his name and she will make the payments. He will buy another home, but needs me to co-sign as the mortgage company will not consider the income from his current home. It would be like two mortgages and he cannot qualify otherwise. I realize the liability for co-signing on the new mortgage, but if a lawsuit occurs could I be sued or liable since the new loan will be in my name also?
3 Answers from Attorneys
You would be liable on the loan if you co-sign, and since you will also be on title, you could be subject to lawsuits that would attach to the property. However, you should make sure that there is adequate liability insurance on the home.
BARRY BESSER
www.besserlaw.com
If he actually sells the house, meaning title is transferred to the baby day care provider, his existing lender will have the right to demand immediate repayment in full or foreclose on the property. If he does not transfer title, he exposes himself to liability for the day care operation. In short, this is a really really bad idea.
Don't ever co-sign anything for anybody.
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