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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Update to the cousin and mortgage issue
they got approved.
Now they have to tell him no way.
I feel badly for Dad..he's the one to make the phone call.
But my cousin has a pair..nerve.
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Posted 3/11/11 4:57 PM  |
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MrsKS
Thank You St. Gerard.....
Member since 12/09 8306 total posts
Name:
Kerri
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Re: Update to the cousin and mortgage issue
Oh so they went along with it to see if they would be approved thinking they wouldn't be approved??
Personally I think they should have just said... "sorry we have bad credit and I just don't feel comfortable". I wouldn't have acted like I would do it on the hopes of not being approved just for fear of this type of situation.
I mean cousin asked and they said yes and are now backing out. Which I totally understand not wanting to be on the mortgage or a part of it in any way....but they should have said no from the get go. I can't say the cousin is the one with the pair now.
Unless I'm missing a part to the story.
sorry your dad has to make that phone call to him now. I feel bad... he's losing a house he thinks he has.
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| Posted 3/11/11 5:11 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Update to the cousin and mortgage issue
Posted by Blu-ize
they got approved.
Now they have to tell him no way.
I feel badly for Dad..he's the one to make the phone call.
But my cousin has a pair..nerve.
Don't feel bad.. if anyone should feel bad, it should be your cousin.. shame on him!
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| Posted 3/11/11 5:13 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
At first the cousin told them they would not be responsible for it and all he needed to show was more income. After I spoke to mom and dad about it and told them they were co-signing then they understood.
They spoke to him tonight and he tried to tell them that he would sell the house before he would default because he is buying a short sale and it will be worth so much more when he sells. He doesn't know that. No one does. Highly speculative.
I don't think my parents at 77 and 79 with no assets need a speculative investment.
They just need to tell him that they are not comfortable co-signing for a mortgage. If he needs a deduction then he isn't doing something right.
He needs to get a job, pay taxes like everyone else and deal with it like everyone else does.
He is comfortable with a high degree of risk but he's got 30 years on my parents. He has a job, they don't. My dad had to give up his life insurance because the premiums were insane.
My cousin has a pair. They told him they were not comfortable with it and he kept hammering them and telling them how desperate his was and needed to buy the house.
eta: And said cousin will get the entire deduction..my parents won't. No upside for them, only downside.
I'm really mad. And he also told them that they changed their minds because I intervened. You bet your azz I did. You were telling them long tales.
Lastly, just because you get approved for a loan doesn't mean you should take one out. I don't know how a bank approved them on ss and no assets and have debt.
Message edited 3/11/2011 10:40:55 PM.
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| Posted 3/11/11 10:32 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Update to the cousin and mortgage issue
I'm glad your parents said no.
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| Posted 3/12/11 10:54 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
It's a shame that they have to continue to say no while my cousin keeps at them.
It's hard enough to say no once, but over and over again as he "works" on them.
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| Posted 3/12/11 1:18 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
and he just told them that they would be on the mortgage but not on the deed.
Wow.
Lose/lose for them.
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| Posted 3/13/11 9:36 AM |
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LisaW
Time for me to FLY!
Member since 5/05 13199 total posts
Name:
Did I ever tell you that I hate people?
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Re: Update to the cousin and mortgage issue
Omg, I wouldn't be able to hold back. I would rip him a new one!!!!
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| Posted 3/13/11 9:45 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
Posted by LisaW
Omg, I wouldn't be able to hold back. I would rip him a new one!!!!
I realize that I'm posting some personal info here and harping on it but that's how mad I am.
I've told a few very close friends and even our family doctor who we are very close to who takes care of us all and his jaw dropped.
It's so stressful for mom and dad and now my cousin thinks I am the bad guy. He is not living in reality.
Have we learned nothing in the mortgage crisis? I wish dad never gave him the financial info to begin with but he was not forthright and mislead them to believe they would have no financial responsibility but clearly mom and dad didn't understand what he was doing. They haven't applied for a mortgage in 40 years. They know now and feel taken advantage of.
I had dad put a fraud alert on his credit because they ran his credit w/o him signing an authorization so who knows what else my cousin can have done w/o their signatures.
He's making me not trust him now and that's a shame. I've seen how money can break up a family.
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| Posted 3/13/11 9:52 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Update to the cousin and mortgage issue
If your parents are ok with it, I would call the credit bureaus to not allow new credit to be opened in their names without their actual consent. If you think it is necessary you can also freeze their credit where no new credit can be opened.
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| Posted 3/13/11 11:23 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
Posted by LSP2005
If your parents are ok with it, I would call the credit bureaus to not allow new credit to be opened in their names without their actual consent. If you think it is necessary you can also freeze their credit where no new credit can be opened.
Yes, that's exactly what they did. They put a fraud alert on their credit last night.
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| Posted 3/13/11 1:23 PM |
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tara73
carseat nerd
Member since 11/09 3669 total posts
Name:
Buttercup
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Re: Update to the cousin and mortgage issue
Posted by Blu-ize
Posted by LSP2005
If your parents are ok with it, I would call the credit bureaus to not allow new credit to be opened in their names without their actual consent. If you think it is necessary you can also freeze their credit where no new credit can be opened.
Yes, that's exactly what they did. They put a fraud alert on their credit last night.
A freeze is more effective than a fraud alert. In your case, I would suggest your parents freeze their reports.
A fraud alert just says there may be suspicious activity and the company SHOULD call and verify identity with info from the report(which if your cousin knows the info it will be easy to bypass, they ask things like verify your home address, county, loan amount for your auto loan etc which he is likely to know the answers to), the freeze prevents the pull at all without a PIN.
You can place a freeze on all 3 reports.
http://learn.equifax.com/credit/fraud-alerts/
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| Posted 3/13/11 1:40 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
Posted by tarabelle99
Posted by Blu-ize
Posted by LSP2005
If your parents are ok with it, I would call the credit bureaus to not allow new credit to be opened in their names without their actual consent. If you think it is necessary you can also freeze their credit where no new credit can be opened.
Yes, that's exactly what they did. They put a fraud alert on their credit last night.
A freeze is more effective than a fraud alert. In your case, I would suggest your parents freeze their reports.
A fraud alert just says there may be suspicious activity and the company SHOULD call and verify identity with info from the report(which if your cousin knows the info it will be easy to bypass, they ask things like verify your home address, county, loan amount for your auto loan etc which he is likely to know the answers to), the freeze prevents the pull at all without a PIN.
You can place a freeze on all 3 reports.
http://learn.equifax.com/credit/fraud-alerts/
I may suggest that to them but I have the same alert and I've applied for credit with it and let me tell you, not easy to verify. They asked me questions I had to really think about. Then again, he has access to the credit report now and can see what the history is.
In the end, better to be safe than sorry.
Message edited 3/13/2011 6:30:01 PM.
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| Posted 3/13/11 6:29 PM |
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acm1899
LIF Adult
Member since 1/11 1085 total posts
Name:
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Re: Update to the cousin and mortgage issue
Posted by Blu-ize
eta: And said cousin will get the entire deduction..my parents won't. No upside for them, only downside.
Not that it makes a difference regarding your cousin's deception, but if your parent's are legally responsible for the mortgage and your cuz defaults and they wind up having to pay, they do get to deduct whatever interest they wind up paying...if that were to happen.
Posted by Blu-ize
Lastly, just because you get approved for a loan doesn't mean you should take one out. I don't know how a bank approved them on ss and no assets and have debt.
It was probably one of these fly-by-night places who set up and approve the loan and then just sell it off to another bank...which yeah, is how the whole mortgage fiasco was created.
It's a shame when people stoop so low to swindle their own family.
Message edited 3/13/2011 8:53:30 PM.
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| Posted 3/13/11 8:52 PM |
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MrsKS
Thank You St. Gerard.....
Member since 12/09 8306 total posts
Name:
Kerri
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Re: Update to the cousin and mortgage issue
OK.
I was thinking that he asked them. And they said yes thinking they just wouldn't be approved anyway. That they really wanted to say no but felt bad and just couldn't so they went the yes route with the assumption the results would be a decline.
Since that plan fell through they now have to turn around and say no.
I didn't realize he was misleading them and all that was going on. Can your parents get in touch with the the realtor to let him/her know that they want no part of this deal?
Don't your parents have to sign paperwork and all? Even for the application process??
Does the cousin not work? You mentioned that he needs to get a job and pay taxes.
I agree with the freeze suggestion.
It's really unfortunate that your parents gave him any information... because now he has their credit info.
I'm sorry for all this.
Sounds like quite a predicament.
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| Posted 3/14/11 1:32 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Update to the cousin and mortgage issue
Posted by MrsKS
OK.
I was thinking that he asked them. And they said yes thinking they just wouldn't be approved anyway. That they really wanted to say no but felt bad and just couldn't so they went the yes route with the assumption the results would be a decline.
Since that plan fell through they now have to turn around and say no.
I didn't realize he was misleading them and all that was going on. Can your parents get in touch with the the realtor to let him/her know that they want no part of this deal?
Don't your parents have to sign paperwork and all? Even for the application process??
Does the cousin not work? You mentioned that he needs to get a job and pay taxes.
I agree with the freeze suggestion.
It's really unfortunate that your parents gave him any information... because now he has their credit info.
I'm sorry for all this.
Sounds like quite a predicament.
Partially the story. At first he told them he just needed them to back him up with showing a certain amount of income. I asked dad, what does that mean? You can see my first posts on FHF. I was confused. It meant being a co-applicant but my cousin kept telling them that they would not be responsible for the loan. So they gave him the info. Then I get on the phone with him and I get out of him that they are co-signing the mortgage. I tell him I don't agree with it and explain the whole thing to my parents.
He swears up and down he would never let it get to the point where they would have to pay for various reasons but we all know there are circumstances out of your control. If you can't afford to pay for something you shouldn't get it.
He is the realtor. He writes down all of his income and that's why he can't show enough income on his tax return.
Yes, they would need to sign documents but since he was able to do a credit check w/o them actually signing authorization what else can he do?
He is a stand up guy and I love him but he is putting pressure on them and was not forthright from the start. They didn't understand. Now they do. Now we are all angry and upset.
We want to help him but this is a little different from saying I need $1K can you help? That wouldn't be the issue.
So the two things I have experienced I won't ever let happen again:
Getting audited by the IRS (which for him is a matter of when not if)
Buying a piece of property I shouldn't have and I am now stuck with.
What's the FU about it, the last straw if you will is that they would be on the loan but won't own it. So God forbid he passed away or was incapacitated and couldn't conduct his own affairs they would be on the hook for the mortgage and have no rights to sell it.
Very bad all around.
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| Posted 3/14/11 9:08 AM |
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