Signed for a mortgage years back for sister, she backed out and now I can’t pay.?

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I would just like to start this with I have learned a valuable lesson here and I just regret not following my gut instincts. Back in 2002 through much begging my sister talked me into signing for a mortgage on a trailer in Louisiana for her and her daughter to stay. At the time her credit wasn’t very good and she wouldn’t be able to get approved for this herself. I didn’t want to sign for this loan but she promised me that in a year, once her credit had approved, she would put it into my name. So I signed for it and she moved in. So something like six months goes by and now she wants to marry some guy. She moves out of the trailer in less than a year, after I signed a long term mortgage on it. Various people have stayed there since that time just trying to keep the rent paid.

Well recently my younger brother was staying there and now he is no longer able to afford the payment. I can’t afford the payment at this time either and I am about a month away from making a military PCS move. I have never lived in the trailer myself. So now here I am stuck with a piece of property, in a trailer park, in my name, that I can’t afford, on the other side of the US. Needless to say I am pretty pissed at my older sister for this. At this point I am tired of being stressed about this thing. What can I do in this situation? Can I tell these people to just go get the thing? What are the repercussions if I just tell them to take it back? This thing was purchased back in the beginning of 2002 and in 2003 I enlisted in the Army and haven’t been near this thing since. Does anyone have any suggestions on what I can do? I honestly don’t care about credit report at this time. I just want to solve this problem. Thank you. Oh and the guy she married she is now divorcing. Go figure…

2 Comments
  1. Reply
    Helen, EA in PA
    May 15, 2011 at 1:47 am

    You know you learned a lesson, so we don’t have to repeat that.

    Let the bank take it back, it will mess with your credit and you may have some taxable income, but it will be over.

    Helen, EA in PA

  2. Reply
    Steve D
    May 15, 2011 at 2:02 am

    Be careful about defaulting on the loan if you plan on making the service your career. A bad credit score can mess up a security clearance.

    One thing you don’t mention is whether the trailer is in your name or your sister’s. If it is in your sister’s name, have her sign a quitclaim deed, re-register the trailer in your name and sell it. Hopefully you can get enough to pay the mortgage or come close enough where you can scrape up the difference.

    Remember that the repo will stay on your credit report for 7 years and pretty much screw you over when you need a house of your own or vehicle – it will compound your problems and you may still owe the difference between what the bank can sell the trailer for and the balance on the loan.

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