If a home goes into foreclosure, what happens to a co-signer?

UPDATED: Oct 19, 2010

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If a home goes into foreclosure, what happens to a co-signer?

I am a co-signer on my daughter’s mortgage. She is is allowing the home to go into foreclosure. Can the mortgage company put a lien on my home? What else could they do to me?

Asked on October 19, 2010 under Real Estate Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

1) If the home is foreclosed, you will lose any right to it or to the equity in it.

2) As a cosignor, you are legally as responsible for the payments as your daughter. If the sale of the home brings in less than the remaining principal balance on the loan, the lender may sue you for that balance. If they sue you and win, they could then try to collect by using several different mechanisms, one of which is to get a court order to put a lien on your home; or garnish wages; or garnish a bank account.

If your daughter is going to default, she should consider bankruptcy. You might also want to consider making the payments on her behalf and having her sell or transfer her interest to you. You should speak with an attorney to evaluate your options. Good  luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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