Hi Mortgage Banker,

I want to know about the legal risks of co-signing.

You will remember I have a sister with lots of equity, mediocre credit, income from mulitple sources including a husband she is separated from.

So, let’s say I co-sign on a refi loan for her. What happens if:

– She pays late? (my credit gets dinged, right?)

– She defaults? Specifically I am imagining her home would be foreclosed, but could a bank come after my assests, wages or bank accounts?

I appreciate your advice and any precautions you may have for me.

JS