February 13, 2015
A reader asks, “As a co-borrower on a home for my daughter-in-law, I was never notified by the mortgage company that loan was late. DIL told that as long as she was in repayment, they would not report late. What do I do?”
FHA loan rules can’t address all circumstances, and there are some areas involving an FHA loan that depend strictly on the arrangements made between the borrowers and the lender.
When it comes to co-borrowing, any occupying or non-occupying co-borrower who needs to be kept in the loop with regard to the status of the mortgage (payments made, payments missed, etc) may need to make prior arrangements with the lender.
This may be crucial when it comes to late or missed payments–how is the co-borrower to know the status of the loan?
These arrangements may need to be worked out with the lender before closing time or made as an additional arrangement later on, but one thing is clear. A co-borrower who is affected by the payment or non-payment of the mortgage loan should definitely take proactive steps to stay informed as to the status of the loan, regardless of how that is arranged.
Recovering from the credit hit that a late or missed payment can make could take time, and borrowers who have questions about how to accomplish this should call the FHA directly at their toll-free number: 1-800 CALL FHA. You can get advice and assistance on these issues and more
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for moderation prior to appearing on the site.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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