I co-signed on my mom’s mortgage to help her get a loan, and the house went into foreclosure (see details)…?
I co-signed on my mom’s mortgage to help her get a loan. I was naive going into this — completely new to the process, and believed it when I was told by the broker that I could be taken off the loan at any time (I’m filing a complaint with the Attorney General for that).
Well… mom couldn’t afford to pay back the loan, the foreclosure process has begun, and now she’s talking about filing for Chapter 7 bankruptcy.
By her filing for chapter 7, I would be the only person left standing to pay for a house that I don’t even live in.
I’ve already spoken with two attorneys — one said they’d try to get my name off the loan and I never heard back. The other said I should sue her to force a short sale, and said the bank probably won’t go after me for the difference.
I’m really getting the shaft on a deal that was supposed to help my credit. What can I do to come out of this as squeaky clean as possible, without regard to mom?
NOTE: I apologize to those of you who like to be the one to provide the moral or lesson to each story, but I’m ok in that department. I already know the moral of the story.
BTW: I live in Illinois.