First, it appears, by you contributing financial information in their loan modification efforts, that you had co-signed on the loan. In that case, for them to continue with a loan modification, you would need to provide your financial information as well in order for it to be considered. There is simple ratios that would need to be calculated to see if they can qualify, or IF the loan mod would be sufficient to help your sister and brother in law get back on their feet in paying their mortgage.
I suggest you cooperate, and I also suggest you talk to Stephen Beede's office ( local attorney who specializes in explaing the legal remifications for a $200 consultation fee).
If the home forecloses, THAT IS THE ONLY ACTION THE BANK CAN TAKE (they can't do both). Unless you have a few million in the bank (NOT retirement funds) that could pay the house off, there is no possibllity that they would sue you, rather than foreclose on the home. (it's called a single action- foreclose on the house, or sue the mortgagees in court over the next 5 years. the lender can only do one or the other). As i assume their home isn't a million dollar mansion and you aren't the next Donald Trump, the lender will find it easier to foreclose rather than go after you personally.But that's just my opinion.
If you want to know the ratios that they will use to consider the viability of a loan mod, or possible short sale, then go to http://www.makinghomeaffordable.gov or call and I'll explain it to you.
But if I were you,and I co-signed on a loan, I'd prefer cooperating and do a loan mod or short sale over having a foreclosure kill my credit for the next 7 years as well as other ugly ramifications.
Sorry. You co-signed as a good deed, and now it's coming back to bite you.
Did you co-sign for their mortgage? Normally, unless you are directly named as an owner on the title, of a loan participant, you should have no financial obligations for the property.
This is not intended to be legal advice, only and opinion rendered from my personal experience in real estate.
Just because the house isn't on the credit report doesn't mean it won't be, especially IF you also are a signor on the loan. IF you signed for the loan, then you could be asked for your financial records from the lien holder to satisfy their modification requirements. If you signed as a co-signer, you could be held responsible for repayment of the loan.
You really need a Real Estate attorney and tell your WHOLE story to them. I've a feeling we are only getting a sprinkle of information here.
Good luck, and get to work on this sooner than later to avoid being caught in a big mess!
I hope for the best for you and your family. Loan modifications are hard to get but some are successful. Have they thought about trying to short sale the home? You may want to mention that to your sister and brother-in-law.
In a loan modification they have to prove that they can make future payments. Have they had a job loss or illness that prevented them from making their loan payments?
You definitely should consult legal and tax professionals to see what course of action you should take personally. If you are on the loan, the bank would want to hold you liable. Don't delay, get expert advice now.
All my best,
Sounds like you may have been a non-Occupying co-borrower?
In any case, I would suggest you seek some legal advice from a RE Lawyer. I doubt your own home is in harm's way; however, you might have some financial exposure with your Sister's loan.
I agree w/James; I would not provide any information until you obtain some legal advice after you expose ALL of the details of your involvement in your Sister's purchase.
Best Regards, Steve
So if the modification fails, and they should decide to sue the borrower, you probably do not want to get involved.
What should I do .. Send them my info or jaut my sisters and brother in laws