Legal Question in Real Estate Law in New Jersey

My father was a cosigner for a condo that I lived in. I sold the condo and bought a house about 4-5 years ago. In order to get me the lowest possible interest rate, (my ex husband ruined my credit then) the house went into my fathers name. I have lived there, paid taxes mortgage etc. I guess for him it is considered an investment property? However no profits were made on this house (I never paid more than a mortgage). I have a good credit score now, and my fiance and I are now looking to sell the home and move. It was 195,000 dollars when it was purchased and we had about 64,000 down from the profit on my condo. We are putting the house on the market for 249,000 (with 118,000 left on the mortgage). How can we do this with out putting my father on the house we buy? My fiance would get a loan through VA, since he was in the military. However, I am not on the mortgage with my father, would we get taxed? How could we sell the home? We would use the money from the sale of the house into a new one.


Asked on 3/01/11, 10:49 am

1 Answer from Attorneys
Barry Gartenberg Barry F. Gartenberg LLC

Thank you for your LawGuru question. A reasonably prudent answer will require a review of documents relevant to your existing home. However, "co-signer" typically refers to a party who guarantees a debt, such as a home loan. The co-signer does not need to be made an owner of the property. Similarly, the sale of a property which has a loan and guarantor (i.e., co-signer) typically requires the payoff of the loan on the existing party. However, the guarantor need not be made an owner of the new home (i.e., "putting him on the house"). Nor is the guarantor required to guarantee a loan on the second home. I suggest that you contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

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Answered on 3/01/11, 1:26 pm


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