Legal Question in Real Estate Law in New Jersey

Cosigner's Rights

In 1999 I cosigned a loan for my brother and sister-in-law. My brother and I are the only names who appear on the deed. A few months later, I cosigned a home-equity loan for them. All parties involved agreed that my name would be removed asap so as not to limit my purchasing power or credit and that they would not allow the transaction to affect me financially. (foolish me!)

Since that time, they have gotten divorced and are trying to settle the estate. Last year when I was purchasing a home, my debt-to-income ratio was very high because of my involvement as a cosigner/deed which impacted the amount of money I was required to put down and increased the interest rate on the loan. Late payments (which may not have exceeded the final deadline for the bank) were made by my sister-in-law. Last month I paid the mortgage for my brother since he could not.

What are my legal rights to the house? Damages?

help! Any advice you can offer would be appreciated!


Asked on 3/24/04, 12:52 pm

1 Answer from Attorneys

Bernard J. Berkowitz Berkowitz & Raiken

Re: Cosigner's Rights

You need to sit down with an attorney as soon as possible with all relevant documents. If your name is still on the deed, you have certain rights as well as liabilities for the mortgages.

The easy way is to just sell the house, but you may have a claim against your brother and sister in law for adversly affecting your credit. If you don't call me, call someone. Good luck.

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Answered on 3/24/04, 3:01 pm


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