Broken Oral Agreement, fraud, or misrepresentation?

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2 years ago I co-signed for my aunt and uncle for them to buy a house. Earlier this year, I found out the house was foreclosed and was on my credit report (I never lived in the house). I was assured that I was only signing as a co-signer, but now Washington Mutual (where the mortgage was loaned) is saying I am a primary (there are 3 primary signers– me, my aunt, and my uncle). I ordered the signed paperwork for the loan from Washinton Mutual and I did indeed sign as a primary, but I was just signing where the realtor told me to sign. When I call the realtor and my aunt and uncle now, they all tell me that I was only supposed to be a co-signer (and both groups try to blame each other claiming they do not know what is going on). Is this grounds to take any of them to court for breaking an oral agreement, misrepresentation, or fraud?

  1. Reply
    January 25, 2011 at 2:10 pm

    In mortgage lending there are no co-signers, just co-borrowers.

    I think you’re out of luck here. You signed the paperwork and it is your respoinsibility to know what you are signing and what it means.

  2. Reply
    January 25, 2011 at 2:18 pm

    You signed it. It is your obligation to read what you are signing before you do. All adults know that you are legally bound by what you sign.

    Anyway, what is the real difference between a co-signer and a 3rd primary on a loan? You are responsible for the loan either way if it is in default and it is on your credit either way. What good would a co-signer be if it didn’t mean you were legally obligated for the debt?

  3. Reply
    January 25, 2011 at 2:28 pm

    Way too legal you need to get legal representation before it’s too late. If you can’t afford it here is a link that might help you

    Free legal aid search for all states:

    Best of luck

  4. Reply
    Herald, Email me.
    January 25, 2011 at 3:17 pm

    The best thing to do would be to contact an estate/real estate attorney and you will only have to (usually, depending on the firm) pay the consult fee to get advice from the lawyer or even a paralegal sometimes will help you for less money.

    However, I believe that when you signed, regardless of the oral agreement between you, your aunt and the realtor, whatever was ON PAPER is the agreement so reread the stipulations. Co-signing MEANS that you are using your credit to help someone, and so if they are penalized, on most agreements you will be too.

    I co-signed a Honda Accord car payment with my younger sister last year and she has been late on payments, and it hurt my credit.

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