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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55325
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I am refinancing. My sister 's income had to be included bec

Customer Question

i am refinancing. My sister 's income had to be included bec mine was not sufficient to qualify.The new loan company is making us sign two separate loan applications and relavant documents. My question is...why is she not listed as a co- borrower? on paper this looks like two separate loans bec each doc lists the loan amount for each of us as the full loan price of 256k. I would truly appreciate your input.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 1 year ago.

Sandra. You really need not worry. The loan application will often times look like this because each of you will be jointly and severally liable for repayment of the loan and therefore the lender basically separately qualifies each of you. Being jointly and severally liable means that the lender can pursue either of you for the full amount of the loan balance if the loan goes into default to get full payment if one of you is unable to pay. But, the lender cannot collect more than what is owed; i.e., the lender can't collect from both of you. When the actual loan documents come out, there will be just one promissory note setting forth the terms of repayment and one mortgage document giving the lender a lien on the property in the event of a default.

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