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Co Signer Out of Work

My Co-signer just lost their job, we are in escrow and less than 30 days from closing. She is looking for work and has savings, but I want to know if I am obligated to tell the Lender? by nicktrig211 from Honolulu, Hawaii. Nov 13th 2018 Reply

Lance Owens (Lance Owens)
#3 ranked lender in Hawaii - 17 contributions

Yes, and the sooner the better. They also verify just before funding, all the parties information, including employment. So at this point you can get out of your contracts with no penalties, but if you hide the facts and it is discovered later, you may lose all your deposit money, and be liable for the sellers moving expenses. So please notify your lender asap and find out other options.

Nov 13th 2018
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,719 contributions

Yes, you are obligated, and yes, they will find out anyway, so you may as well tell them now. There are many things lenders do that people don't know about as part of the process. One of them is an LQI report, which is where basically we re-look at credit, and re-verify jobs just a few days before closing. Fingers crossed. I've had this happen a number of times over the years. If she finds a job right away, good chance you can save the deal.

Nov 15th 2018
David R Youngs - Branch Manager & Mortgage Advisor (DavidRYoungs)
#64 ranked lender in Minnesota - 87 contributions

In addition to some of the other comments listed here, if your co-signor can find a job quickly, then you might still be OK. I'm not sure which type of loan program you're qualified for, but many allow for income to be used with 30 days of pay stubs on the new job. The key is that it usually has to be in the same line of work, full-time, Salary or hourly (not commission)and preferably for the same or higher pay than was received before. If it is a SALARY position (even a few weeks out), there may even be an option to use a signed & accepted "offer letter" from the new employer to prove the new income, with NO pay stubs needed. Talk with your loan professional ASAP about the situation and be sure to discuss explore these options in more detail. I hope this helps!

Nov 20th 2018
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