Posted on: 29th Dec, 2007 11:02 am
difference between a cosigner or a gurantor
In a mortgage transaction they are one in the same.......
Hello Ranjivhoshiarpur,
Most people mix up the two terms but they have subtle differences between them.
A co-signer is primarily liable to make the mortgage payments if the borrower defaults. A co-signer is mostly registered on the title of the property as the co-owner.
A guarantor is one who personally guarantees that payments will be made if the borrower defaults but he does not claim to the property as he is not on the title.
Most people mix up the two terms but they have subtle differences between them.
A co-signer is primarily liable to make the mortgage payments if the borrower defaults. A co-signer is mostly registered on the title of the property as the co-owner.
A guarantor is one who personally guarantees that payments will be made if the borrower defaults but he does not claim to the property as he is not on the title.
That was me in the last post. Forgot to log in.