Posted on: 15th Apr, 2004 02:13 am
A cosigner is an individual who agrees to take over the responsibility of repaying a mortgage loan, provided the original borrower fails to pay down the debt.
Example:
Nichole is interested in taking a loan of $100,000 for 4 years at 5% interest rate from Jennifer. Nichole is the original borrower here. But Kate signs the mortgage note along with Nichole in order to assume equal responsibility of the loan. Here, Kate is the cosigner.
A good cosigner should have a credit profile with the following attributes:
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Example:
Nichole is interested in taking a loan of $100,000 for 4 years at 5% interest rate from Jennifer. Nichole is the original borrower here. But Kate signs the mortgage note along with Nichole in order to assume equal responsibility of the loan. Here, Kate is the cosigner.
A good cosigner should have a credit profile with the following attributes:
- His credit report should not have derogatory items on the credit report.
- The cosigner should have maintained a good credit history for 4 to 5 years.
- The total credit should not have exceeded a certain limit.
- Credit obligations are maintained as per the terms and conditions.
- A number of revolving credit lines remain unused.
- He should have steady income to meet the current debt requirements.
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My supervisor is going to Strafford College in VA. she has asked me to cosign for her, but has written a letter and having it moterized that I would not be responsible if anything happened. Her husband would take over the payments. Should I sign as a friend, coworker or not?
When you co-sign you are being equally responsible for that loan. If some thign happnes, unless your supervisors husband name is on the loan, they will come after you, not him.
I am guessing, Probably the lender do nto knwo about yoru arrnegemtns correct.
Unless this is document on the lodn, you are fully responsible.
I am guessing, Probably the lender do nto knwo about yoru arrnegemtns correct.
Unless this is document on the lodn, you are fully responsible.
cosigning is a very dangerous proposition. if you plan to do so, you need to know precisely what you're getting into. becoming a cosigner obligates you to pay the entire debt - period. obviously, the borrower plans to make payments, but if he or she fails to do so, the creditor is going to be dialing your phone.
be very careful. friendships, marriages, families - they have all been damaged by one person cosigning for another.
the letter your supervisor plans to write will mean absolutely nothing to a lender. what i don't understand is why she is asking you to cosign and not her husband. oh well...maybe his credit isn't good.
again...be very careful.
be very careful. friendships, marriages, families - they have all been damaged by one person cosigning for another.
the letter your supervisor plans to write will mean absolutely nothing to a lender. what i don't understand is why she is asking you to cosign and not her husband. oh well...maybe his credit isn't good.
again...be very careful.
if my son doesn't pay his mortgage, what exactly can the mortgage company take from me and my husband
Mary, when you cosigned, you promised to make payments. That's all the mortgage company will seek from you initially. If you can pay, do so. If you cannot, then try to work out alternative arrangements, including your son in any such arrangements to the extent that you are able.
If neither you nor your son can find a way to make the payments, the next step is generally a foreclosure of the mortgage. They won't be taking anything from you, although your credit record will certainly be harmed. Ultimately, in a foreclosure, they'll either take possession of the house or force a sale of it. If the sale doesn't satisfy the mortgage debt, there's a possibility they could seek a deficiency. Then and only then would your financial situation be put in harm's way. In order for them to "take" anything, however, there would need to be a court order to do it.
If neither you nor your son can find a way to make the payments, the next step is generally a foreclosure of the mortgage. They won't be taking anything from you, although your credit record will certainly be harmed. Ultimately, in a foreclosure, they'll either take possession of the house or force a sale of it. If the sale doesn't satisfy the mortgage debt, there's a possibility they could seek a deficiency. Then and only then would your financial situation be put in harm's way. In order for them to "take" anything, however, there would need to be a court order to do it.
Yup...this was me:
Mary, when you cosigned, you promised to make payments. That's all the mortgage company will seek from you initially. If you can pay, do so. If you cannot, then try to work out alternative arrangements, including your son in any such arrangements to the extent that you are able.
If neither you nor your son can find a way to make the payments, the next step is generally a foreclosure of the mortgage. They won't be taking anything from you, although your credit record will certainly be harmed. Ultimately, in a foreclosure, they'll either take possession of the house or force a sale of it. If the sale doesn't satisfy the mortgage debt, there's a possibility they could seek a deficiency. Then and only then would your financial situation be put in harm's way. In order for them to "take" anything, however, there would need to be a court order to do it.
Mary, when you cosigned, you promised to make payments. That's all the mortgage company will seek from you initially. If you can pay, do so. If you cannot, then try to work out alternative arrangements, including your son in any such arrangements to the extent that you are able.
If neither you nor your son can find a way to make the payments, the next step is generally a foreclosure of the mortgage. They won't be taking anything from you, although your credit record will certainly be harmed. Ultimately, in a foreclosure, they'll either take possession of the house or force a sale of it. If the sale doesn't satisfy the mortgage debt, there's a possibility they could seek a deficiency. Then and only then would your financial situation be put in harm's way. In order for them to "take" anything, however, there would need to be a court order to do it.