Cosigner on VA home loan?
My husband and I are going through a divorce. Our home is in both of our names with me being the cosigner. I moved out of the home with the kids because my soon to be ex had always stated he wanted the house. I couldn't afford it anyways. Now, we are still going through the divorce and he is one minute saying he wants the house and the next saying he doesn't. Therefore, making it impossible to put it on the market right now and him not willingly to go and refinance. So he hasn't made the last two payment on the house and our next court date isn't until next month. I am concerned with what this will do to me. I know that I am also responsible for the loan but with it being a VA loan, what happens if it does go into foreclosure? For those of you who will respond to this asking if I can refinance in my name and take it over... the answer is no.
- 1 decade agoFavorite Answer
As soon as you miss that third monthly payment, the lender can issue a notice of default and start foreclosure proceedings. As a cosigner on the loan, you are responsible for it if your husband doesn't make the payments. Therefore, when foreclosure occurs, you will get dragged down with it.
If you are currently separated, you should have filed for separation already. In that agreement, you and your husband will stipulate that he is to get sole possession of the home. Also, he is to refinance the home in his own name, removing your name from any financial responsibility for the home.
This separation agreement is then signed by a judge and becomes as legal as a divorce agreement, until you either get divorced or get back together (you file to nullify the separation agreement). When this occurs, you then sign a quitclaim deed, handing over your interest in the property to him.
If your husband is intentionally dragging your good name and credit down the drain with his, this is huge ammunition for you when you go to divorce court. Judges absolutely despise it when one spouse tries to somehow screw the other one over with these kinds of shenanigans. Your divorce attorney should be all over this. And, if you don't have one, get one. If he's willing to screw you over like that, you need to have someone on your side looking out for your legal rights in this matter.
- namLv 44 years ago
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- Anonymous1 decade ago
Its very important that you do not allow your name to remain on this loan after the divorce. Since the divorce cannot remove your name from the loan, you need to insist that your ex husband either sells the house or refinances in his own name. Since he is behind on payments, refinancing will be difficult if not impossible, so the house really needs to be put on the market for sale.
- Expert8675309Lv 71 decade ago
You are EQUALLY responsible for that loan along with your husband. Foreclosures with a VA loan are no different for you, than any other foreclosure..the lender is protected, but you are not.
Your credit is already significantly damaged if he hasn't paid the payment in 2 months...and you are only 2 months from getting foreclosure notices.
THERE IS NO SUCH THING as a co-signer on a loan...they are all co-borrowers...read the application...it says right under your name where you signed it: "co-borrower".
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- golferwhoworksLv 71 decade ago
you are screwed at this point with him being 60 days down on the note he may have already in some states been served with default papers and a foreclosure is next. By being a co-borrower it also reports to your credit file as well. now if he and you default on this federally insured note you will not have a chance yo buy for NOT less THAN 4 years by today's standards and that could change Monday to 5 or 6 or even 7 years. Refinancing isn't going to happen either as the 60 days down killed that as well
- Anonymous1 decade ago
Cosigner or coborrower? There's a difference. And are you both on the property title or just him? Again, there's a difference. You'd better talk to your lawyer.