April 7, 2016
Lately, I have been receiving many phone calls from clients regarding problems that have developed because they have co-signed mortgages for family/friends. A co-signer is equally responsible for the repayment of the loan as is the actual home owner.
It is extremely important to obtain legal advice before agreeing to co-sign a Note or Mortgage to help someone else. Too often, I have clients contacting me because their credit has been destroyed because they tried to help a friend or family member.
Furthermore, merely removing your name from the ownership of the Real Estate does not resolve the problem because a co-borrower is still responsible for repayment of the loan. I have many clients coming to my office who have removed themselves from ownership of the asset but are still responsible for repayment of the indebtedness regarding that asset.
Again, any time that you are asked to sign documentation regarding Real Estate, whether it be a Deed, a Mortgage, or other loan type document , it is highly recommended that you speak with a Real Estate Attorney to understand all of the implications involved in executing such documentation.