Posted on: 10th May, 2010 05:32 pm
what's the advantage and disadvantage of being a co-signer?? is it true that once i'm a co-signer it will be hard to take my name out of the mortgage? need answer as soon as possible. thanks!
Hi iluvfish!
Welcome to forums!
If you cosign for a mortgage, you would be equally responsible for paying it off. If the primary borrower is unable to pay off the loan, then the lender will come after the cosigner to collect the dues. If you want to remove your name as the cosigner of the loan, then the primary borrower will have to refinance it in his/her name.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you cosign for a mortgage, you would be equally responsible for paying it off. If the primary borrower is unable to pay off the loan, then the lender will come after the cosigner to collect the dues. If you want to remove your name as the cosigner of the loan, then the primary borrower will have to refinance it in his/her name.
Feel free to ask if you've further queries.
Sussane
And you are not only liable to be called upon to pay if the primary borrower doesn't. As a cosigner, you are 100% responsible for the debt. It's as if you are the borrower. If you are cosigning, you had better be certain that the person for whom you're doing it is responsible and utterly trustworthy, and that you can count on that person to make every payment.
in a nut shell, there isn't any real advantage to you in being a co-signer, other than helping out someone else. Most times the "warm and fuzzy" feeling you get from doing a good deed is significantly outweighed by the fact that it could financially cripple you down the track.
Hi,
As a co-singer you are 100% responsible for the loan as the owner of the property and if the owner fails to make payments then you as a co-signer have to pay off that debt. It will also effect your credit score if the property goes for foreclosure or if late in payments. In order to remove your name from the loan, the owner needs to re-finance the loan in his/her name.
As a co-singer you are 100% responsible for the loan as the owner of the property and if the owner fails to make payments then you as a co-signer have to pay off that debt. It will also effect your credit score if the property goes for foreclosure or if late in payments. In order to remove your name from the loan, the owner needs to re-finance the loan in his/her name.