How do I stop my wife from cosigning?

Question

Hey, my wife's mother has talked her into co-signing on a $250,000 house. I keep telling her that it is a bad idea, mind you she never discussed this with me. But how do i prove to her that this is a really bad idea. Especially if we are going to get our own house one day. Please help!

Answer 1

get a friend who is in business or accounting and have him make up a story about how it will be bad and about how you will loose everything

Answer 2

Have her read the many, many sob stories on this board from people who've destroyed their credit by co-signing loans for people.....see examples below....

Co-signing a loan is an express train to ruined credit...Even if your mother-in-law misses one payment, it will be on your credit report....

Answer 3

Tell her she has a choice of co-signing for her mother's house and ending up with her salary garnished for her mom's house, or being able to get a home of her own.  If she co-signs that mortgage, you will not be able to get a mortgage for your own house until MIL's mortgage is paid off in full -- 30 years from now.  That's blunt, but the truth.

Is her income sufficient to pay her mom's mortgage?  If not, she won't qualify as a co-signer, and you can breathe a sign of relief on that score.  

Answer 4

On a mortgage, this will hit your credit report and throw your debt to equity ratio into chaos.  You will never get a mortgage together with this sitting there.  Also, if your MIL misses a payment, the bank will come after your wife without even trying to get the money out of your MIL.  If you two can't afford the mortgage payment and your own housing payment, this is a very bad idea.

On the bright side, unless your wife would qualify in her own right as the mortgagee, she won't be acceptable as a co-signer.

Answer 5

They aren't going to give her 2 mortgages.

Her mom will bomb her credit.

Because you are married to her the debt will also be yours.

Everyone that cosigns anything always regrets it even a d**n mortgage!!

Answer 6

Well, this will be hard buddy, it's her mother, so although she knows its a bad idea she will probably still want to do it. You're not going to convince her using any economic/savvy appeal.

If you have kids, their future is something to consider. If you dont, then reminder that when you do, your credit will affect their ability to get student loans, etc... If you still have that 250k ding, good luck getting them into community college.

Basically plead with her on the basis of the needs of her current family...

Good luck!