Co-signed mortage problems
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QuestionCountry: United States of America
I have a male friend who co-signed over 3 years ago for a car loan and a second mortgage loan for his girlfriend-both in the state of Texas. She stopped making payments on both-he has been living in the state of Colorado and has been paying on both for 3 years. The car was totaled in an accident but he almost has that paid off. The problem is the mortgage loan-the house was foreclosed on shortly after the loan and he's been making monthly payments to the bank for over 3 years. If the house has since been purchased by a new owner, is he still required to make those old loan payments? Can the bank collect payments from both him and the new owner?
AnswerThey can collect on a deficiency if any existed but they cannot get paid twice--
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