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Long story short - I'm on a mortgage with my brother as a co-signer. He's going to go into foreclosure I think (not yet a done deal). I theoretically could pay the mortgage (which I'm currently paying none of and haven't since I moved out of the house to NYC about 5 years ago), but I have no need or desire for a house that's 800 miles away. If I let it go, and have otherwise perfect credit (which I don't - I have some credit card late pays ~3.5 years ago but otherwise perfect), how is that going to impact me in the rental market? I currently pay ~$2K for a nice one bedroom in Brooklyn that I have a lease on through 4/2013, so I'd be looking if I had to (they're doing a condo conversion here, and this has all but eliminated any chance that I'm buying - but if they offer to renew for another year I'd take it) towards the beginning of 2013. Note that *my* financial situation is in order and hasn't changed.
Long story short - I'm on a mortgage with my brother as a co-signer. He's going to go into foreclosure I think (not yet a done deal). I theoretically could pay the mortgage (which I'm currently paying none of and haven't since I moved out of the house to NYC about 5 years ago), but I have no need or desire for a house that's 800 miles away. If I let it go, and have otherwise perfect credit (which I don't - I have some credit card late pays ~3.5 years ago but otherwise perfect), how is that going to impact me in the rental market? I currently pay ~$2K for a nice one bedroom in Brooklyn that I have a lease on through 4/2013, so I'd be looking if I had to (they're doing a condo conversion here, and this has all but eliminated any chance that I'm buying - but if they offer to renew for another year I'd take it) towards the beginning of 2013. Note that *my* financial situation is in order and hasn't changed.
This makes no sense.If you are on the mortgage and the house is going into foreclosure,you are also "going into foreclosure".If you are going into foreclosure your financial situation is not in order.
Long story short - I'm on a mortgage with my brother as a co-signer. He's going to go into foreclosure I think (not yet a done deal). I theoretically could pay the mortgage (which I'm currently paying none of and haven't since I moved out of the house to NYC about 5 years ago), but I have no need or desire for a house that's 800 miles away. If I let it go, and have otherwise perfect credit (which I don't - I have some credit card late pays ~3.5 years ago but otherwise perfect), how is that going to impact me in the rental market? I currently pay ~$2K for a nice one bedroom in Brooklyn that I have a lease on through 4/2013, so I'd be looking if I had to (they're doing a condo conversion here, and this has all but eliminated any chance that I'm buying - but if they offer to renew for another year I'd take it) towards the beginning of 2013. Note that *my* financial situation is in order and hasn't changed.
My understanding is that if you are the co-signer, then you are on the hook just like your brother. Has the bank contacted you? If neither of you have been making payments, then your credit is also shot--more so if you let it go into foreclosure. If a landlord does a credit check you'll have a hard time getting an apartment.
Let's break it into two pieces and look at half of it.
It seems you are most concerned about what will happen to you in April 2013 when you suspect you may be told to buy or clear out? Correct?
IF your apartment is under rent-stabilization then you cannot be told to clear out but you can remain as a renter as long as you wish.
If it is MARKET, then what I would do is talk to the landlord and see if he will let you out of the lease early and get a new apartment NOW, preferably something rent stabilized, before the schytte hits the fan with a foreclosure.
But know well, often these "we're going condo" is just so much hot air and it never materializes so there is a good possibility that all will be fine next year.
Just for the record, is your mortgage far underwater? How much are the monthly payments? Any chance of your making the payments and trying to sell the joint? Short sale a possibility? Can you rent the place out to cover the mortgage?
(Of course that will entail your brother living somewhere ELSE.)
Sorry for not replying here, I think I've found a way out of this. I think that I can take a loan out of my 401K to cover the costs of selling the property normally, which I don't want to do, but it's the only option to save my credit. Not something that I enjoy doing, but the situation isn't as dire as I might have thought. I'll hopefully walk away with unblemished credit.
Sorry for not replying here, I think I've found a way out of this. I think that I can take a loan out of my 401K to cover the costs of selling the property normally, which I don't want to do, but it's the only option to save my credit. Not something that I enjoy doing, but the situation isn't as dire as I might have thought. I'll hopefully walk away with unblemished credit.
Me too! Thanks for the encouragement though - I think (if all goes well) the loss should be fairly small. I can only sustain a loss of $35K total, but I'm thinking it will be much less.
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This makes no sense.If you are on the mortgage and the house is going into foreclosure,you are also "going into foreclosure".If you are going into foreclosure your financial situation is not in order.
