My father in law wants to take $20,000 from our remortgage for co-signing the loan…?
Tags:6 years, delicate situation, financial planner, ssn, whole time,
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When you got tied together my father in law co-signed for the residence for my mother as good as you since she was twenty as good as didn’t have any credit as good as you had only come from the UK as good as hadn’t even got my SSN yet. Now 6 years after with us profitable the debt as good as homeowners payments for the total time you have been seeking to refinance to lift the little income out to refurbish the kitchen as good as bathrooms as good as he says he wants us to "buy him out" for ,000 from the equity of the home. (We paid for it for ,000 as good as the right away supposing around 0,000) We have paid around ,000 in payments upon the residence over the 6 years as good as you feel similar to he is being miserly perplexing to distinction upon his kids. you do not know how to proceed the theme with him as good as my mother doesn’t wish the difference with her relatives over money. Her father is utterly good off as the monetary planner as good as creates substantially 0k the year as good as her mother functions too. Her father co-signed for her hermit additionally though his residence is in georgia as good as is value reduction than what the paid for it so they do not have to compensate hunker if they sell it. you need the little recommendation upon what to do about this. Its the really ethereal incident as good as you need to proceed it correctly.
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All I can say is I would never do this to my kids, but to be fair look at it this way if he had not co-signed you would have never been able to purchase the home and have that $51,000.00 in equity.
Legally I’m not sure you can sell the house without his signature, if this is so, he has you over a barrel.
My advice is to talk to your lawyer and see what if any legal obligations you have before you discuss this with your father in law.
Good luck.
Well, if he has never paid any of the payments – you shouldn’t have to ‘buy him out’. He himself has no equity in your home. He did not personally loan you money so you do not owe him anything. The bank required a co-signer just as someone to pay up if you did not pay the mortgage.
BTW – it is a really, really bad idea to borrow of the equity of your home. May I make a recommendation? Check out daveramsey.com
if the father-in-law never put a dime into you getting the house, he doesn’t deserve proceeds from it. He is a real shmuck for even asking for it.
I think you shouldn’t mess with the house at all. Get the money some other way, and you don’t have to worry about writing the schmuck a check for 20k.
All he did was co-sign on the loan which means that he was willing to guarantee that he would take over payments if you couldn’t. He doesn’t own any part of your house and has a heck of a lot of cheek asking you for $20,000 to buy him out. In the USA, that’s called "extortion" and would land a person in jail. Your father in law should know better.
SO, talk to your banker first and see if you & your wife can requalify for the loan without Dad’s signature. I bet she could also answer any question about the stunt dear old Dad is trying to pull. If you are still nervous about this, go see a real estate attorney and lay out the entire story. The attorney will help you set Dad straight.