I'm co-signer on a loan for a house that is now on short sale. What should I expect?
Short-sale practices are likely to vary from state to state, based on differences in state real estate laws. Contact the party that holds the mortgage note to ask whether you, as co-signer, would remain liable for any deficiency in a short sale approved by the lender. If the lender says that you will be released from liability, make sure that you obtain a written release at the time of the closing of the short sale. If the lender does not agree that you'll be released, won't give you a definite answer, or refuses to provide a written release after saying it would do so, contact an attorney to determine your options.
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Short-sale practices are likely to vary from state to state, based on differences in state real estate laws. Contact the party that holds the mortgage note to ask whether you, as co-signer, would remain liable for any deficiency in a short sale approved by the lender. If the lender says that you will be released from liability, make sure that you obtain a written release at the time of the closing of the short sale. If the lender does not agree that you'll be released, won't give you a definite answer, or refuses to provide a written release after saying it would do so, contact an attorney to determine your options.
