Hi there
I'm wondering if anyone can advise on any liability scenarios for my Mother cosigning a mortgage for my Sister. She doesn't understand the risks involved and frankly I don't either.
Facts:
Mother:
Retired
Earns 40k in pension
Owns a house worth about 500k
Plans to sell within a year
Might buy a smaller property
Sister:
Working single mother
Earns around 60k
Here are three questions that I would love some help on:
1) If she cosigns for my sister, and sells her own house, will she be able to buy another property? How will that be affected?
2) If my Mother were to pass away, how would this cosign affect the distribution of her assets (inhertitance) to her three children?
3) What else does my Mother need to understand about cosigning this mortgage? The one thing I understand about this is that she will be liable for any missed payments by my Sister.
I am happy to provide additional information upon request. Any advice or direction would be greatly appreciated.
I'm wondering if anyone can advise on any liability scenarios for my Mother cosigning a mortgage for my Sister. She doesn't understand the risks involved and frankly I don't either.
Facts:
Mother:
Retired
Earns 40k in pension
Owns a house worth about 500k
Plans to sell within a year
Might buy a smaller property
Sister:
Working single mother
Earns around 60k
Here are three questions that I would love some help on:
1) If she cosigns for my sister, and sells her own house, will she be able to buy another property? How will that be affected?
2) If my Mother were to pass away, how would this cosign affect the distribution of her assets (inhertitance) to her three children?
3) What else does my Mother need to understand about cosigning this mortgage? The one thing I understand about this is that she will be liable for any missed payments by my Sister.
I am happy to provide additional information upon request. Any advice or direction would be greatly appreciated.