How can I take my name off a mortgage loan that I co-signed to help a family member?
Question Details: They needed my help and promised that they would pay the mortgage on time. Now they have made late payments that has affected my credit score. Also, municipality officers are calling me about multiple complaints against my relatives and was told that I am legally responsible for it even I am not living there.
1) There is no way to get off the loan unless your family member voluntarily chooses to refinance solely in his or her own name. The loan is a contract; you are obligated to it unless and until a) it is paid off; or b) ALL parties to the loan/contract agrees to release you from it--and the bank will not. Releasing you not only does not help them, it actively hurts them, by reducing the number of people who have to pay the loan (and who can be sued for the money if it is not paid). So while you could ask the bank and your relative if they will both agree to release you, it is very unlikely that they will. And if they won't, you can't get off the loan unless your family member pays or refinances it, which is also unlikely.
2) The police are 100% wrong: being on a loan for a home does not make you responsible, since being on the loan just means you have to pay the loan--it does not by itself mean you you have any ownership over the home or control over the people living there.
HOWEVER, if you are on the home's title, then you are an owner and can in fact be held liable for the actions of the people living there, whether or not you live there, too.