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what happens to me a co-signer on a default mort. loan

I co-sign a loan now the other person cant pay and neither can I. can they take my house or my savings
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December 28 2010 - Shelby Township
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I believe that Michigan has deficiency judgements so that if you default, the bank can sue you for the difference between what you own them and what they finally sell the house for. In many states, a judgement allows the creditor to garnish your wages and it in some states it may also allow them to lien property.

If you cannot pay, your best bet is contacting the bank and trying to arrange a short sale so that you can get the maximum amount between what you owe and what the house sells to reduce the amount you will owe. In some cases, you can negotiate with the bank and have them agree to sign off on the amount that you owe if you help facilitate the short sale. Do not wait. Get legal advice now and talk to your bank now so you can get the best deal possible and move forward with the least damage.
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December 28 2010
They won't take your home, or savings, but the default will show up on your credit report. This will impact your credit scores and your ability to get another mortgage for at least a few years.

Mark
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December 28 2010
 
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December 28 2010 | 2 answers
what happens to me a co-signer on a default mort. loan
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Latest answer by sunnyview
December 28 2010 | 2 answers
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