Legal Question in Real Estate Law in New Jersey
Handing back a mortgage
My boyfriend is the co-signer on a mortg w. his stepdad. his parents couldnt afford the house so they moved out and hes been paying 'rent' w. friends. his mom didnt pay $6000 in monthly payments and he can't get caught back up on the late charges, escrow, etc. hes now decided he just wants to hand back the deed- what is he responsible for (taxes, etc) since hes the co-signer??
2 Answers from Attorneys
Re: Handing back a mortgage
If your boyfriend co-signed the note and mortgage on the mortgage loan to his parents, he is fully obligated for the entire mortgage amount. Didn't his parents tell him when they stopped paying? Didn't he know when they moved out?
Changing legal title on a deed does not change his obligations on the mortgage.
He should contact the lender and see what kinds of solutions the lender may suggest. The lender may agree to a schedule to catch up the mortgage rather than requiring all of it to be paid now. With dropping interest rates, either the lender might agree to lower the interest rate [and therefore, the payment amount], or the house might be refinanced for a better interest rate.
With such an agreement from the lender, your boyfriend may be best off renting out the house and using the rent payments to catch up and pay the mortgage and other maintenance costs of the house.
Re: Handing back a mortgage
We really need to do a more formal interview to see what options would best suit this situation...
How much was the mortgage?
When did they sign (How many months ago)
What is the house worth?
Please write back so I can get the details to really offer a solution. [email protected] is the e-mail
Mike
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
