My wife, son, and I lived with and paid rent to my mother in a house she was not able to afford. Mom made a deal with a mortgage company that was supposed to bring her monthly payments down to an affordable level. She asked me if I would co-sign, since she wouldn't qualify on her own. Reluctantly, and foolishly, I agreed, under the condition that I would be able to take my name off the mortgage at anytime. I was naive and signed on when I was told by the mortgage broker that it would be no problem. (That's a seperate issue I'm going to the Attorney General about). I had just cleaned up my credit and was looking to restore it and this seemed like a good way to do that.
Long story short, she couldn't afford it still and the house is in foreclosure. She kicked my wife, son, and I out, saying she was preparing to sell it. My brother still lives there rent-free.
Months go by, and nothing is being done w/the house. We spoke w/an attorney and she said I can sue her to force a short sale and hopefully save my credit.
Then, this summer, my mom underwent surgery by a shady doctor and has been out of work. She has a medical malpractice suit pending. Meanwhile, the bank has offered to lower her monthly payment by $ 700 per month in order to avoid foreclosure. She can't afford this, so we offer to move back in and help w/payments. She declines, saying "I can't kick your brother out!" (Gee... thanks mom).
So... I need to save my credit. I want a home for my family. She's screwed me big time. Should I or should I not sign this workout agreement. Not signing means the foreclosure will continue, and she'll be forced to sell (if not by her own free will, then by me through my lawyer). I won't be able to get credit to buy a home until I'm almost 40 if I agree to this and she doesn't hold up her end of the bargain.
Sharon T
You need to rely on a competent real estate attorney. You can't afford to make another mistake.
Donna J
Gee, thanks Mom. I would talk to an attorney about the fact that since you are a co-owner and have the right to live on the premises, you should be able to live there, pay the mortgage and evict your brother for not paying rent. If Mom doesn't like this arrangement she should get a small apartment with your brother and let you rent a room to someone who is willing and able to pay rent. All on the stipulation that Mom sign over the house to you as she is gonna lose it on her own.
Hope this is a viable choice. Good luck to you.
Paul in San Diego
Never enter into business deals with friends or family, because they will soon be neither.
Orignal From: Tips: Should I sign this mortgage workout agreement?
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