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I'm buying a home and my grandmother has co-signed the loan. Sadly, she has passed away while the escrow check is in the mail. The contract is signed, and to the best of my knowledge, we don't need anymore signatures from her.
We needed her monthly income to help us get the loan, and that is of course now gone. We also will get no help from the executors of her estate.
What is my disclosure obligation to my lender?
If I didn't tell the lender she passed away, would he find out in a final credit pull?
Thank you. I know my grandmother would want me to get this home.
I'm buying a home and my grandmother has co-signed the loan. Sadly, she has passed away while the escrow check is in the mail. The contract is signed, and to the best of my knowledge, we don't need anymore signatures from her.
We needed her monthly income to help us get the loan, and that is of course now gone. We also will get no help from the executors of her estate.
What is my disclosure obligation to my lender?
Sorry if I didn't tell the lender she passed away, would he find out in a final credit pull?
Thank you. I know my grandmother would want me to get this home.
If you need a her to sign then you cannot afford the house if you need to lye to get the the house you cannot afford it
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Look for a new co-signer, fast, or a cheaper house. Even if you can make the payments yourself but didn't qualify due to a "less than perfect" credit record, they will find out, because the lender will have people whose job it is to review the obituaries for people who died that have a Mortgage with them, to get a head start on the deceased claim. As a co-signer her name will be there when they cross reference the database. You can be considered liable for fraud, and while they might not prosecute they would definitely call in the loan. You would have to pay it off immediately or vacate and probably lose your down payment. Call the lender Monday
and ask for some time. This is not the 90s when people got away with this sort of thing.
Thank you so much for your responses. I should clarify that I can easily make the payment and have plenty of assets in case of a lay-off or any incidents like that.
I am, however, leaving the state and changing jobs which makes my income very hard to document. That's why I needed Grandma.
I am mostly interested in what is my legal obligation, what could happen, and what has happened in your experiences.
Thank you so much for your responses. I should clarify that I can easily make the payment and have plenty of assets in case of a lay-off or any incidents like that.
BS I don't buy it because in your first post you said that you did need her income to make the loan and payments.
"We needed her monthly income to help us get the loan, and that is of course now gone. We also will get no help from the executors of her estate."
I'm buying a home and my grandmother has co-signed the loan. Sadly, she has passed away while the escrow check is in the mail. The contract is signed, and to the best of my knowledge, we don't need anymore signatures from her.
We needed her monthly income to help us get the loan, and that is of course now gone. We also will get no help from the executors of her estate.
What is my disclosure obligation to my lender?
If I didn't tell the lender she passed away, would he find out in a final credit pull?
Thank you. I know my grandmother would want me to get this home.
To bustaduke's point you did say this....
In any case you're going to have to tell the bank sooner or later and better sooner IMO. They will find out. I don't know about looking over the obituaries (there could always be two people with the same name, I don't know how you use an obituary to make a case), but I'm sure they have other ways.
doinker it sounds like you're in over your head. The days of "liar loans" are over, and your Weekend at Bernie's mortgage app won't amuse the lender one bit. And yes they will discover it.
Instead of looking for people's approval, why not listen to the sensible advice already given. You cannot afford this home without grandma's pension, you've admitted this yourself.
There's a word for people like you, doinker. Renter.
Guys, there are a 1001 reasons why someone needs a co-signer due to the rules we now have on steroids. It's gone beyond ridiculous. You can have someone pulling a six figure income, but because of guideline changes, we can't count the income. I don't think it's fair for any of us to say the OP is not able to make the payment without specifics.
Banks do not have someone reading the obits looking for borrowers that have passed away. In my 30 years in banking, I've never even heard of such a thing. I have no idea where that came from. Deceased socials are now reported to the credit bureaus and now come up on credit reports. Sure there are gaps, but there are other processes that will pick up a deceased individual to prevent credit, but no one is combing the papers.
OP I don't understand completely were you are in the process. Are you saying all the docs were signed? The "closing" occurred? She signed the note? The funds are just being disburse for recording? If that is the case, she signed a promise to pay before she died. Recording is an event that happens after closing. Now, if you still have yet to get to the closing, you do have a problem.
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