Can I refinance a 2nd mortgage I co-signed to buy a home?

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This may sound really stupid, but I'm new at this whole thing.

I co-signed a 2nd mortgage for a family member when I turned 18. I know, dumb me. Well the home has sat empty for a year, almost two, since about one year after I signed the mortgage. It has been in foreclosure but is not yet foreclosed.

I fought the claim on my credit and the results of the investigation were that it was deleted from my credit report. Or so I thought. I filed with Experian, used TransUnion to check that the charge was gone, and it was. At the time, I was unable to view my Equifax report because they needed me to verify the information on the mortgage for which I had no paperwork. Come to find out, the charge is still listed with Equifax.

Now I am in the postion of either A) waiting another 30 days during which time the mortgage company has yet another chance to prove the charge, basically giving them 60 days instead of 30, since they already had 30. Not sure if I have that kind of time. I need




  1. A lender will not take on a new second mortgage if the first is in default.  The only way to do a refi is to refi both the first and the second. The question is if it will be another piggy-back first plus second, or a refinance done with just a first mortgage.

    The home will probably need to be a primary residence in order to do a refi. Otherwise, lender will look at this as a bridge loan to be used while house is up for sale.

    You may be able to buy out the person for who you cosigned the loan.  We have done loans like that.

  2. Only the owner can refinance.  A co-signer has no rights and is just along for the ride.

    Don't waste a lot of time checking your credit score.  You're screwed.  Exactly how much doesn't matter.

    Your best chance would be to buy the house from the owner with your own financing.  If you do this before the foreclosure, you will help both the current owner and yourself keep a foreclosure off your report.

    Then, never cosign anything ever again.

    When someone needs a cosigner, they have been to a creditor, and probably more than one.  All the credit analysts at these lenders, who are experts at evaluating borrowers, have decided that this person is a deadbeat, or a deadbeat in the making, and refuse to make a loan based on his word.

    When you agree to cosign, you are saying that all the credit experts at all the lenders he has gone to don't know their business, and to prove it you will bet the amount of the loan plus interest that they are wrong.  The cosigning arrangement makes you 100% responsible for the debt but gives you no right to control what was bought with the loan.  

    Maybe the people who make a living evaluating borrowers really do know what they're doing.

  3. Why not just aggressively work to pay off the second mortgage with 0% credit cards or a mortgage payoff plan like ?

    The refinance fees often kill the savings on a 2nd mortgage refi.

  4. First off, the 2nd mortgage is going to go back on your credit.  You co-signed, you are just as responsible as the signer.  When you dispute with the credit bureau they deleted as the law states because they did not get response or proof from the 2nd mortgage holder, however once it is confirmed it will be put back on.  

    Second, no you won't be able to refi.- You have to own the home & your new lender would require a payment history on the excisting 2nd which is in foreclosure now- Automatic turn down these days.  

    I am sorry that a "family member" has put you into this position.  Hopefully all your other credit has been good.  Ususally need 3 years after a foreclosure with good credit before you will be qualified to buy.

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