Some people think that being a cosigner in a loan only means
that they prove that the person trying to get a loan is trustworthy, some
easily agree to be a consigner without being aware of the legal
responsibilities that they will have to face when the person they have
co-signed for stop paying or starts paying late. To ensure that you know
everything there is to know about cosigning, read through below:
What Does it
Mean to Co-Sign a Loan? - When you co-sign a loan, you promise to pay
off the loan in the event the primary borrower is unable to pay off the loan. A
co-signer becomes necessary when the person applying for the loan doesn’t have
sufficient credit history, reliability or income to get the loan on his own.
Important
things to know when considering a cosigner - A wide range of
individuals can be a cosigner as long as they are creditworthy, understand and
accept the responsibilities of being a cosigner, and meet any specific cosigner
requirements of the lender.
The basics of
co-signing a loan - Lenders generally take a cautious approach to
first-time borrowers. Without a credit history to go on, it's not unusual for
them to require a co-signer before they hand over a check. A borrower who's
been told he needs a co-signer isn't necessarily considered a poor credit risk.
The Difference Between a
Co-borrower and a Co-signer - Having a co-borrower or co-signer may
improve the FHA loan applicant’s chances of getting approved for the mortgage.
Using a co-borrower or co-signer is also a way for a borrower with established
credit to help a less established co-borrower become a home owner under the
proper circumstances.
The
Benefits and Issues of Co-Signing a Loan - Co-signing on a loan or
credit card is a serious matter that should not be entered into lightly. Essentially,
when you co-sign on a loan, you are taking on legal responsibility for the
account, and it will appear as your obligation on your credit report.
What
Will Happen If the Cosigner of Your Loan Files Bankruptcy? - The
prospect of building your credit with a cosigned car, home or personal loan is
exciting. Your first big loan is a major milestone on your road to financial
adulthood and can make or break your reputation in the eyes of future lenders.
Cosigning for step
son's mortgage turns into bad deal
Bob in Sacramento, CA
cosigned on his step son's mortgage and now his step son is making late
payments. After the call Dave explains why not everyone in America needs a
mortgage.
There is nothing wrong with co-signing, the problem only
occurs when the person you have agreed to cosign for has stopped paying for the
loan or gets late in their payment. Besides the nuisance they can give you, the
legal implications can be a headache.
