Mortgage Specialist – need help!!!!?

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My husband jointly owns a home with his two sisters. Both sisters are in financial trouble and one wants to get a home equity loan (or maybe LOC). She has talked to a mortgage loan officer who said that my husband doesn’t have to co-sign for the loan, only that he has to sign something giving his “permission” for her to get the loan. What the heck is that all about? Have you ever heard of such a thing? Is this the same thing as a “guarantee”? He is NOT going to co-sign a loan for her under any circumstances (if he wants to remain married to me at least)! Any advice would be GREATLY appreciated!
anyone but you…..
I would never, ever co-sign a loan for anyone – not even my own brother or my parents because this affects my husband, my life-partner as well. This is what marriage is all about. We do not have marriage issues – been married for 24 years last month. It’s a respect issue.
anyone but you…
thank you for your answer – sorry for being too touchy – I was probably a bit misleading in my question – I wouldn’t divorce my husband over this because it would never get to that point – we always make all of our financial decisions jointly – we would never make such a decision without being united in it
The sister that wants to get the loan has the worst credit of the three, she has had the same job for a long time, but it’s only a part-time job and she can’t even pay her bills now, so I don’t see her being able to make these payments either. My husband really doesn’t want to do this, but his mom is giving him a major guilt trip for not supporting his sister! We’re still researching so that we can give a complete answer as to why he won’t sign for her, which is why I was trying to find out the diff b/w “co-signing” and “guaranteeing” The way I look at it, if we do this, it puts our whole financial future in jeopardy and that affects my kids. Our first priority is to each other then to our kids and anyone else we can help falls in line after that. Extended family is important, but once you’re married and have kids your first priority becomes your own family. I will be contacting the mortgage company tomorrow for more details but wanted to see what you guys knew first. Thanks much.

5 Comments
  1. Reply
    reena r
    April 29, 2011 at 10:38 pm

    Approach them and ask

  2. Reply
    I Have Parasites
    April 29, 2011 at 11:29 pm

    Being that he is joint owner, all they would need are the permission of all 3 parties on the loan itself to take out a home equity loan. He wouldn’t have to sign it, but he would have to agree to it being taken out as it would affect his name also. I hope this helps?

  3. Reply
    nickelrustler
    April 29, 2011 at 11:57 pm

    His interest in the home is still at risk, even if he doesn’t co-sign. If they default it IS his problem as well. I advise against ANY loans on that property….PERIOD!

  4. Reply
    ANyone but you
    April 30, 2011 at 12:27 am

    Dont undermine your husbands relationship to his family.
    If money is more important than your marriage then I think you need alot of help, but a mortgage broker wont be able to give it to you.

    edit:
    I dont mean to intrude on your personal issues but you put them out there.

    I just think that maybe you should respect your husbands willingness to help his family. Family is very important and your not the only one hes got. the ethical, compassionate thing to do if your siblings are in trouble is to help them.
    Besides its their property, owned by him and his family. I think you should respect that.

    Sry if i offended you.

    …………… As long as both of you are together on whatever decision you are going to make, then i think everything will be well.

    Remember even if the sister opens up a LOC or a second mortgage the only lean would be placed on that property. So in the case of default the only thing that would be jeopardized is that house and as far as you and your husband are concerned only a third of the property price.
    I think you should heed the advice of the gentleman who said that its ok to do it as long as the LOC is a third of the market value of the house.
    If she defaults you guys can sell the house, payback her debt and still come out with your share.

    PS. I still think you should help the sister!
    Think of it as an investment in compassion.
    and that is priceless!

  5. Reply
    thepolishchef
    April 30, 2011 at 1:02 am

    He will not be personally responsible for the loan.
    However, it still puts the home up as collateral.
    So, if she defaults, they can put a lean on the home for the amount of the loan. Make sure she does NOT make the loan for more than her 1/3 share of the home. Make sure it is NOT being placed as a second mortgage. Then, they could foreclose on the home. This is very stupid. I think you should talk your husband into NOT signing anything. It is a very hard decision when it comes to family. But, you can not let one member drag you down. If she got herself into this mess, can she be trusted to be financially responsible to repay this loan?
    If she has to claim bankruptcy, bigger problems if she has this loan. My advice, if she is that strapped for cash, let her sell her share of the home to the other two. What is her work history like? Has she had ONE job for a long time? IF so, maybe you can trust her. That is your call.

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