TL;DR my parents are asking if I will co-sign on a loan taken out in their name against their house (which they own; paid in full), in order to payoff taxes owed to the IRS.
The first year of owning the home, they got hit with unexpected taxes that they didn’t account for and have been paying off that balance for the past year. That sucks, but they’ve been able to afford that extra monthly payment.
However, the other day my dad was given a letter from the IRS saying he owes a few thousand in taxes on disability backpay he got a year or two ago. I didn’t get all of the details, but I think they’re asking for payment in full immediately.
My dad is supposed to come down next weekend and asked if we could talk about it and explore options. He doesn’t want to borrow money from me, hence the idea of co-signing.
Anyone been in a similar position and have some advice? I’m just trying to decide if it’s a good idea or not for me to co-sign on a loan (if they take that route). I’ve never co-signed on anything and I am only 2 years out of college and am still paying my own student loans.
Thanks in advance.
Edit: some additional background info: my dad already asked his bank about a loan and was denied due to bad credit. Don’t think my mom has tried yet, but i believe it’s expected that she will be denied too due to lack of credit history.
Submitted July 19, 2019 at 07:35PM by aflyingcougar https://ift.tt/2Y8J40s
