Here's the story....
My older sister is about to walk-away from her house in Sacramento, CA where they're upside down with over $150k. They cashed out money of about $100k in the past from that house over a year ago and spent it almost recklessly. She's now asking me to co-sign for her to get a a house that is being sold as short-sale. I feel that it is wrong to help people, even if it's my sister, to allow them to walk-away from their responsibilities. It is unfair to me and everybody else who has been been responsible with their mortgages to help these kind of people. To add more info, my sister has a history of financial recklessness and that she has lost 2 houses in the past. My parents are urging me to help but my personal belief tells me otherwise. What should I do?

no

kcaja1 said:Here's the story....
My older sister is about to walk-away from her house in Sacramento, CA where they're upside down with over $150k. They cashed out money of about $100k in the past from that house over a year ago and spent it almost recklessly. She's now asking me to co-sign for her to get a a house that is being sold as short-sale. I feel that it is wrong to help people, even if it's my sister, to allow them to walk-away from their responsibilities. It is unfair to me and everybody else who has been been responsible with their mortgages to help these kind of people. To add more info, my sister has a history of financial recklessness and that she has lost 2 houses in the past. My parents are urging me to help but my personal belief tells me otherwise. What should I do?

It sounds like you've already made up your mind. Why are you asking us? In any case, you've made a wise decision. She has already shown her ineptitude for saving money, why is this case any different?

agreed... Offer her advice on how to repair her credit or where to find financing. DO NOT risk your credit situation for someone who has already proven to be irresponsible with hers.

I don't know if this is within your means, but why not buy the house and rent it out to her?

kcaja1 said:Here's the story....
My older sister is about to walk-away from her house in Sacramento, CA where they're upside down with over $150k. They cashed out money of about $100k in the past from that house over a year ago and spent it almost recklessly. She's now asking me to co-sign for her to get a a house that is being sold as short-sale. I feel that it is wrong to help people, even if it's my sister, to allow them to walk-away from their responsibilities. It is unfair to me and everybody else who has been been responsible with their mortgages to help these kind of people. To add more info, my sister has a history of financial recklessness and that she has lost 2 houses in the past. My parents are urging me to help but my personal belief tells me otherwise. What should I do?

I'd go with the other recommendation of just buying it and renting to your sister. In effect that is what would end up happening if you were to cosign anyways. If she decides to walk away again, you are stuck with 100% of the mortgage, not 50%. Remember, cosigning doesn't mean you are liable for half. Each person is liable for 100%.

Tell your parents that you are going to help her out and then explain that: By not giving your sister money (you are the one that is going to pay eventually anyways) you are actually helping her out alot more than she realizes. Would you give crack to a crack addict of course not, you might buy them a meal if you are feeling generous. Think about you sister's addiction to money the same way.

I believe you know the answer to that question.

If your parents are so concerned, maybe they should be the ones to cosign.

You should help your sister of course... but not by giving her money. If you co-sign, you are giving her 100% of the price of the house, because that is what you are responsible for if she walks away.

No.