I currently own a home that I’m about to let go into foreclosure. My brother asked I could sign to be a co-borrower so he can buy his home. He needed me because of my good credit and stated income. At first, I said “yes” without even thinking, of course because he’s family. However, how would this affect me in the future? I’m worried that my current lender may try go after me because my brother’s home, I’m the co-borrower, would be my asset. He’s downing 10% on a $500k house. His agent/broker assured him that it wouldn’t affect anything on the new house even after I go into foreclosure. I’m not so convinced because his agent could be telling this so he can get his commission. After that it’ll be our problems. I’m trying to research this but have not found anything. I might contact a lawyer, he’s paying of course, if I don’t find an answer soon. How much does it cost to consult with a lawyer anyway? Please help.
What future consequence would I face, if any, if I buy another home then let my current home go in foreclose?
24
Apr
Wanda
April 24, 2010 at 4:32 pm
There are more than credit implications in a foreclosure. You should check with an attorney before signing anything.
There are tax implications associated with the difference between what is owed and what the house ultimately sold to the new buyer for.
Not sure what it costs to consult with an attorney – but you can bet it will be cheaper than a foreclosure
cowboydoc
April 24, 2010 at 5:17 pm
There are no family, in complicated money matters like this. You could get screwed for life and, where would your brother be?
Go see an attorney, a land attorney and have him give you advice on it. It’s to deep for this type of money.