New Realtor Questions.

In regards to ethics.. You need to discuss that with your broker.. As far as the lending side, the rules are very clear.. this does not have to be disclosed, and even if it were, the lender would not base it's decision on this information. Going into the hospital does not cause a home to go into foreclosure.. not making the payments will. Having a cosigner would only be beneficial if the cosigner were willing to make the payments if the primary borrower couldn't. Keep in mind that if she does buy this home, and then passes.. then depending on how they both took title to the property, the cosigner could get 100% of the home assuming the cosigner stays current on t he payments. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Being ethical keeps you in business a long time, but all sorts of unethical people come and go and leave damage in their wake. I would probably just ask a few questions related to her long term and short term objectives so they think about all aspects of what they are looking to do. From a loan standpoint, it is not an official question or consideration. But again, a conversation with the client on the ramifications of what happens after she dies, and making the co-signer aware of their rights and responsibilities is what a good loan officer would do anyway. But ultimately, the decisions is theirs. If they want to move forward, it is none of our business. I lend in MN, WI, and SD, and can be reached at iMortgageJoe.com. NMLS274132

I would make sure that the possible co signor is 100% aware of what the situation is and also maybe suggest that they have some agreement set up for the home when she dies ( will it be sold ...where will sales proceeds end up ? with co signor ? or estate? etc