A friend of mine discussed about cosigning a mortgage together back when we were looking for a house to buy. Fucking dodged a bullet on that one.
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
Cosigning loans for a family member? Yay or nay?
- Thread starter mhayes86
- Start date
Only for a child of yours and if you're prepared to take over the payments yourself if they can't keep up.
Edit: I had a girlfriend that got herself removed from her ex husband's house mortgage. Have your mother in law's husband do the same and see if that helps. If not... Oh well. A house isn't a necessity so fuck co-signing on a luxury like that.
Edit 2: The more I think about it, the more it irks me that they'd even ask you two to be responsible for a $100,000+ loan. If they can't keep up you're faced with having to pay two mortgages or if you don't pay theirs then you're ruining your credit. So they'll either be living rent free or you're fucked. You try to sell the house (if that's even possible without the primary person on the loan's consent) and you'll have to go through the sometimes lengthy and difficult process of eviction. That's a hard NOPE and middle finger to the mother in law.
Edit: I had a girlfriend that got herself removed from her ex husband's house mortgage. Have your mother in law's husband do the same and see if that helps. If not... Oh well. A house isn't a necessity so fuck co-signing on a luxury like that.
Edit 2: The more I think about it, the more it irks me that they'd even ask you two to be responsible for a $100,000+ loan. If they can't keep up you're faced with having to pay two mortgages or if you don't pay theirs then you're ruining your credit. So they'll either be living rent free or you're fucked. You try to sell the house (if that's even possible without the primary person on the loan's consent) and you'll have to go through the sometimes lengthy and difficult process of eviction. That's a hard NOPE and middle finger to the mother in law.
Last edited:
Never cosign for anyone. I wouldn't cosign for my mom, siblings or even kids. It may sound mean, but cosigning is a surefire way to ruin that relationship if anything goes wrong. I mean imagine if they pay the bill late, it dings up your credit score, you end up having to pay higher on interest on a loan and then you see them driving a new car or you see their kids with some overpriced gadget. Either you're going to feel cheated or they are going to avoid you.
I probably will take out loans to pay for kids university if I can't cash flow it and if they are making sensible choices about what school and career they are pursuing. Other then that nope.
I probably will take out loans to pay for kids university if I can't cash flow it and if they are making sensible choices about what school and career they are pursuing. Other then that nope.
Co-Sign, nah - unless it were for my kids.
Lend money, sure - that's something we would do - and have done.
We gave my brother-in-law an interest free loan because they needed a bigger car and some unexpected expenses (water damage due to somewhat shoddy plumbing work by the previous owner required a remodel of the entire upstairs bathroom) had created a sudden lack of liquidity.
Lend money, sure - that's something we would do - and have done.
We gave my brother-in-law an interest free loan because they needed a bigger car and some unexpected expenses (water damage due to somewhat shoddy plumbing work by the previous owner required a remodel of the entire upstairs bathroom) had created a sudden lack of liquidity.
For my family I would, but everyone's family is different and I wouldn't fault them if they didn't for theirs. I just know I can trust mine.
laughable.
There is usually a darn good reason banks will not lend to people and they need you and your good credit to act as a guarantee.
That guarantee is usually backed by some sort of collateral - like a house!
If your deadbeat relative doesn't pay the loan repayments, or if your great relative has a run of bad luck and they lose their job, the bank is coming after you and your collateral.
"I just know I can trust mine."
you know how many folks said that who ended up taking on a loan/ mortgage for their family after they couldnt pay?
every
single
one
It's like saying "MY dog doesn't bite people".....
Sorry you can't trust yours, I have no issue helping out my Mom, brother, or sister. What they need matters more to me than anything else. I've done it before, they've done it, we will all do it again I imagine at some point.
So what? I pick up a couple payments for my family, they've done it for me before, and I've done it for them. Not everyone has a me first mentality.
Okay? If its serious and my parents need money I will co-sign, my father did it for me when I went for college.
and I would do it for him without a second thought.
maybe we have different values, agree to disagree
picking up a couple of payments has nothing whatsoever to do with co-signing on a loan.
with the best will in the world, circumstances can change and cause a previously reliable person to be unable to pay their loan repayments.
to assume this cannot happen, because they are"family" or are of good character, its most odd.
That's an area that I'm not entirely sure about. If my wife were to cosign, I believe I would be affected by proxy. We're a team. Our combined income and our credit scores give us the flexibility to buy what we need and be approved for financing and benefits of good rates (cars, house, home improvement, etc). If the payments fall on my wife, who could not afford it on her own, it would fall on whatever extra is left from both of our paychecks after our own bills. If her credit is destroyed, that would affect both of us when trying to get financing on something together (we're trying to move, so selling our home and buying another house is in our plans). The money we would have to dish out for it would be better suited if we were to have a kid (like we're trying to) since childcare is practically a second mortgage itself. If I fall into financial hardship like a really low credit score or even bankruptcy, it's entirely possible that I could lose my job. There's too much at stake that I don't think she thought about during their conversation that I hope I was able to make her realize.
Thanks, I'd like to think so. : )
Her mother is a good person (financials aside), but I wouldn't trust her with any loan. I wouldn't trust my own mother based on her history as well. If you're suggesting that I put my mother in law on one of my credit cards to help her out, that's a hard pass from me since that can be disastrous. Like any credit related thread here, I've recommended she get whatever card she can get, put a little on it each month and pay it off entirely. That and any debts/collections and you'll see your score rise in time.
After her mother discovered him still being on the old mortgage, I'm sure she's raining hell on him to get that changed ASAP. He was dragging his feet a lot from what I heard during the divorce, and can be very oblivious.
As a reminder, the only context of their conversation that I have is my wife offering to cosign. I wasn't there during their phone call together and am only going by what my wife said. I have no idea if her mother pressured, guilted, or even suggested my wife into offering. Neither my mother in law or her husband are asking for her/us to do it as far as I know. I'm just really upset that my wife even considered it as an option, without asking me about it first, and especially after their history.
Plus, the irony is them getting screwed by him still being on the old mortgage with his ex-wife who is a few months behind payments.
It sucks, and it's a really difficult decision when you love your family and want to help them. I'm more than willing to help out. I gave my younger brother $1000 last month when he needed help, more money before then, and now my older brother who I never thought would ever need to ask for money is currently going through hardships from a divorce and asked for $2500 to keep him afloat while trying to sell his house. It's one thing when you can afford to lose the money, but setting yourself up for something that could potentially destroy you/your family financially is a big deal that can make you come off as cold to loved ones.
As an aside, her mother does not need help. Them getting a house is not a matter of survival or them struggling. Her and her husband are renting a townhouse without an issue and are doing well enough that they thought they'd be able to get a house of their own finally.
Sure anything and everything could happen, but I'm not going to live in fear of that.