Posted on: 28th Oct, 2010 02:58 am
Does a co signer gain ownership when the primary borrower pays the loan?
If you are asking about a pure co-signer, i.e. someone who merely signs a note as guarantor that the borrower will pay; then the answer is an unqualifed "no."
If, on the other hand, you define cosigner as someone who signed in addition to the primary borrower, with each of them fully responsible for the payments, then you'd be talking about someone who already is an owner of the home in question.
If you are not an owner of a home when the loan is granted, then you'll never be an owner unless the existing owner either sells the property to you or grants you an ownership interest via quit claim (or other) deed.
If, on the other hand, you define cosigner as someone who signed in addition to the primary borrower, with each of them fully responsible for the payments, then you'd be talking about someone who already is an owner of the home in question.
If you are not an owner of a home when the loan is granted, then you'll never be an owner unless the existing owner either sells the property to you or grants you an ownership interest via quit claim (or other) deed.