If 4 people are on a mortgage and a lien is put on the home due to 2 people does it affect the credit of all?
Home Mortgage
madsmom_99 asked:
My husband and I have found ourselves in the unfortunate situation of having a lien put on our home due to past child support. We are in the process of having this straightened out but are concerned that the lien will affect my parents who are co-signers on the loan for our home.
My husband and I have found ourselves in the unfortunate situation of having a lien put on our home due to past child support. We are in the process of having this straightened out but are concerned that the lien will affect my parents who are co-signers on the loan for our home.
My husband recently finished his bachelor’s degree, and we had been making small but monthly payments to two different agencies. We received notice last August that one agency was increasing his payment, making it a little over double what we had been paying to both. I mistakenly believed that the payments had been combined and started making only one monthly payment. We have since realized that this was not the case, and are making arrangements to rectify the situation. Our main concern is for my parents. We are worried that our mistake is going to affect their credit. Any advise is greatly appreciated.
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February 12th, 2009 at 2:11 pm
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Anytime someone co-signs on a loan it affects their credit whether it be good or bad. Example: If someone takes a loan out for $3000 and puts their car up for security and I cosign and their loan goes into default and their car is repossessed then it goes on my credit report as well as theirs. If the loan or whatever has gone to collection agencies already then it is probably already on their credit report.
February 14th, 2009 at 8:37 pm
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No it will not. The lien is placed behind your current lenders. If you sell or refinance this home the lien will have to satisfied or in the case of refinance possibly subordinated to a new first lien holder. Most lenders will require that the child support be paid as they want children taken care of most of all. The lien will show up in his credit file under public records and will remain there. When satisfied then the court who placed it there should show it as satisfied. If Not, then contact that court for a satisfaction of lien and dispute the reporting as it does affect his credit and buying power. Good luck!
February 16th, 2009 at 4:54 pm
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golferwhoworks is correct. The lien is on Title, not credit. Therefore the lien will need to be satisfied upon sale or refinance and will NOT mess with the old folks credit.