Legal Question in Real Estate Law in New York
Cosigning a mortage loan for a relative
My husband would like to help his sister and husband by cosigning a mortage loan. I am not willing to participate-I don't want to be responsible for this. My husband may be willing to cosign. If his sister defaults on this loan-, am I liable because I am married to the cosigner? She explained to my husband that it will be for only six months, then she will refinance and he will not be reponsible for anything-he will be out of the picture. How would this transaction affect my husband's good credit?
Thank you for your response.
1 Answer from Attorneys
Re: Cosigning a mortage loan for a relative
You personally will not be liable but if the matter goes to foreclosure and there is a short sale, your assests may be on the hook for a deficiency judgment if they are together with his.
It will only effect his credit if their are late payments.
They may be better ways around this to protect your spouse and still give your sister-in-law what she needs. Feel free to contact me in this regard.
Good Luck
RRG
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