Legal Question in Real Estate Law in New Jersey

Re: take myself off the loan

You go to Chancery Court to compel them to either put up the money needed, or compel the sale of the property.

Re: take myself off the loan

You can't take yourself off the loan. That what cosigning is; you guaranteed that the primary obligor will pay. If they don't for any reason, you are obligated to pay. If you don't, the creditor can sue you too and the matter will affect your credit as well. That is one reason why cosigners for large loans or loans that call for repayment over long periods should always have a supplementary agreement with the debtor.

All is not lost. You may be able to get a court to compel the sale of the property before your credit is in shambles. If you have caught the problem soon enough, you may be able to make the payments and sue at the same time. Even if the debtor does not have any money to pay, worked right, your judgment will become a lien on the property and you can get paid when it has been sold.

Whatever you do, it should be done quickly. If the lender forecloses on the loan, there will be costs to pay and you will become responsible for these too. That will eat into any equity that there is in the property and will increase your loss. If there is eventually a foreclosure sale, you should consult a lawyer about countermeasures that will reduce your loss.

See also: http://info.corbettlaw.net/lawguru.htm