Q: Attorney, “Lender may require co-signer to be on title!?”
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A:
In California, lenders often have specific requirements for co-signers during the home buying process, especially to ensure the stability and reliability of the loan. If you agree to co-sign for your son and his wife, the lender can indeed request that you be placed on the title of the property. This is typically done to secure the loan by giving the lender more control over the property should there be issues with the mortgage payments.
Regarding your wife being required as a co-signer, this is less straightforward. Generally, if there isn't a financial reason for her involvement (like additional income needed for loan approval), it's unusual for a lender to insist on her being a co-signer. However, if you live in a community property state like California, and you are applying for credit during your marriage, your spouse may legally have to consent to the debt since it could impact community property.
Before making any decisions, it's crucial to review these details with the lender and possibly consult another attorney for a second opinion. Understanding each party's legal rights and obligations can help ensure that the terms of the mortgage and the title align with your family's interests and goals.
A:
Thank you for your question!
If the borrower (B) by himself does not qualify for getting a loan (e.g., B has poor credit, B does not have a stable or enough income, etc.), the lender may require a cosigner who qualifies for these requirements.
The cop-signed plays the role of warranty. So, if B fails to make the payments, the Lender still has other resorts to get the money.
This is merely a discussion of general laws and not legal advice. For legal advice, more specific facts and investigations are needed. I recommend you consult with an attorney in more detail.
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