What to do if a borrower can’t make a balloon payment?
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What to do if a borrower can’t make a balloon payment?
My girlfriend holds the deed to a home. Her ex-husband had taken out a mortgage against the home in his name and she co-signed for it. Her ex-husband has left country and will not return. She has just found out about a balloon payment needing to be paid or the it will go into foreclosure. She has spoken to the mortgage company trying to work out the payment but they will only give her so much info because she isn’t the primary borrower. Right now she doesn’t have enough revolving credit to buyout or refinance in her name. How does she save home from foreclosure?
Asked on July 24, 2011 Arkansas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Your girlfriend needs help from an attorney in the area as soon as she can get it. If she is a co-signor on the loan then she has certain rights here - limited maybe but rights nonetheless - and she needs to exercise them. What happened with the house in the divorce process? Was it deeded over to her? But she never refinanced the mortgage? When you say "buy out" it makes me think that the legal issue on the house was never resolved. in the marriage That is really the first step here to understanding how to help. She may have to go back to court to ask that they help resolve the matter in his absence. Please have her seek legal help in the area. Good luck.
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