Hello,

My question is regarding co-signers and Foreclosure in NJ...

It’s a long story, so I’ll try to keep it short.

In 2004, my sister and her fiancée were expanding their family and decided to buy a house. They were advised that in order to be approved for the Mortgage, they needed a second co-signer. At the time, my credit was decent and I had a good paying job so they asked me if I would co-sign the loan for them. I wanted to help out and since my sister was always very responsible (so I thought), I accepted and co-signed. I was very naïve and I never asked questions. Everything seemed to be going great for about 2 yrs. In November 06’, my sister and her fiancée lost their jobs and fell behind on the payments. That's when the problems started. Instead of communicating that they were having financial troubles, they kept to themselves and the problems just snowballed. I checked my credit report and for the first time I saw the mortgage loan was 30+ delinquent (then 60+,120+, etc). My sister NEVER communicated with me that she was having trouble paying for her mortgage. I persistently asked my sister for information and what she was doing to (if anything) to rectify the problem, but she would always become irate and never answer my questions. In March 07’, I arrived home from school, to find a gentlemen with legal paperwork stating that the house was being foreclosed. I immediately called my sister and demanding an explanation. She continued to tell me that it had to be some type of mistake and that she would call the bank and "fix it". I called her numerous times and she never picked up. I take a drive to her house, only to find out that she had moved! I was so upset and I felt hopeless. She calls me later that day and tells me that she was going to tell me about the move, she just didn't want anybody to know, etc. She had given up, in fear of eviction. She rented an apartment and moved because she was afraid to be put out in the street with her kids. I told her that this wasn't a solution and I told her we had to check our options in regards to selling or perhaps refinancing the house. After many unsuccessful attempts to re-finance, we agreed to sell the house. I always argued that we should have sold it months ago. After 6 months on the market, the real estate agent advises that the best thing to do is to try to do a "short sale". It seemed to work because shortly after we received an offer. My sister, her fiancée and I signed offer. I would ask my sister consistently for any updates and her answer was continuously "It's fine, don't worry...She's working on it" ("She" being the real estate agent). That was 10 months ago. Apparently, the offer fell through and we are back to square one. I recently passed by the house and the "For Sale" sign has been taken off. Again, I have no idea what's going on, I don't know who to call or what to do. I can’t speak to my sister because I get absolutely no where or she just hangs up.

I blame myself for not staying completely involved from the beginning, but I really trusted my sister. I was confident that she would not tarnish my name/credit. This put a tremendous strain on our relationship. I know she went through a difficult time, but I just think she did too little, too late. Besides being hurt and feeling totally betrayed, my credit is in the gutter and I have a foreclosure looming over me. Is there anything I can do to salvage my credit? Is there anything that can be done about my situation? I am desperate for help...

Thank you,
Distressed girl in NJ