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I cosigned a mortgage for my brother 9 years ago. I was young and he convinced me that it would be good for my credit. Recently my credit dropped 70 points because he was 60 days late on the payment. He has been late before, he is usually on time for 10-12 months and then he has a late month or 2. I called and spoke with the bank when I realized what was happening and he has 1200 worth of fees (late, insufficient funds, etc.)

My question is do I have a case if he refuses to sell the home when he has a history of not being able to pay on time or not having funds available. Personally, I haven't been late on any payments in 6 years.

L. Will
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2 Answers2

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This is why we tell people not to co-sign unless they are able and willing to risk that money becoming a gift... or are able and willing to treat it as business rather than family.

Unfortunately that advice is a bit late now to help you.

When you cosigned, you promised the bank that you would make any payments he didn't. The bank doesn't care why he didn't, they just want their money on time. Getting him to repay you for covering this is strictly between the two of you, and unless you signed paperwork at the time establishing a contract other than the promise to cover his loan this becomes Extremely Messy.

First step is to make the payments so the loan doesn't continue acquiring fees and hurting your credit rating, and keep it from falling behind again. Then you have to convince him to repay the money you have effectively given him. Depending on your relationship, and financial situations, you may decide to carry him for a while and trust that he'll pay you back when he can, or sic a lawyer on him.

You need to make that decision, recognizing that it may be a matter of how much family drama you are willing to tolerate.

keshlam
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He wasn't wrong that a mortgage would help your credit score, assuming that this was a perfect world and everyone held up their end of the bargain. However, now that he hasn't, you are still legally obligated to pay the loan amount (including his portion of it). As for a lawsuit, it would be hard to prove what he said verbally, however, it doesn't hurt to call a lawyer for a free consultation.

Michael
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