 Sam
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 Posted: Thu Apr 08, 2004 10:16 pm Post subject: Co-Maker |
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A co-maker is an individual who signs the promissory note in a mortgage other than the primary borrower. The co-maker has equal responsibility as the borrower for paying off the loan. His signature guarantees that the loan will be repaid in time.
The co-maker's name does not appear in the title to the property that is mortgaged. So he has no ownership rights in the property against which the loan is taken. He is legally bound to repay the loan when the borrower does not assume the responsibility of paying off the mortgage.
Example:
George takes a mortgage loan from Denny. Both of them agree to the terms and conditions of the loan. Along with George, Smith also signs the promissory note and is thus responsible for repayment of the mortgage. Here, George is the primary borrower and Smith, the co-maker.
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