ANSWERS: 3
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She just as liable as if she were the sole signatory. That's why co-signing is very dangerous.
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I'm afraid so - and so sorry!
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Yes, but if your mother can afford to begin making the payments and the house has not yet sold for less, she may be able to work a payment plan with the bank to save her credit from hitting rock bottom and being liable later for the difference. If she could afford to continue making the payments until the housing market picks up in CA then she could sell the house for a profit or at least break even.
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