Cosigner

Sam · Posted: Thu Apr 15, 2004 2:13 am Post subject: Cosigner

A cosigner is an individual who agrees to take over the responsibility of repaying a mortgage loan, provided the original borrower fails to pay down the debt.

Example:
Nichole is interested in taking a loan of $100,000 for 4 years at 5% interest rate from Jennifer. Nichole is the original borrower here. But Kate signs the mortgage note along with Nichole in order to assume equal responsibility of the loan. Here, Kate is the cosigner.

A good cosigner should have a credit profile with the following attributes:

His credit report should not have derogatory items on the credit report.
The cosigner should have maintained a good credit history for 4 to 5 years.
The total credit should not have exceeded a certain limit.
Credit obligations are maintained as per the terms and conditions.
A number of revolving credit lines remain unused.
He should have steady income to meet the current debt requirements.

A cosigner is required to sign the mortgage note when the original borrower lacks adequate income and credit score to qualify for the loan. The borrower may also need a cosigner if he simply wants to qualify for a better interest rate.

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My supervisor is going to Strafford College in VA. she has asked me to cosign for her, but has written a letter and having it moterized that I would not be responsible if anything happened. Her husband would take over the payments. Should I sign as a friend, coworker or not?

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.77 Dollars($)

When you co-sign you are being equally responsible for that loan. If some thign happnes, unless your supervisors husband name is on the loan, they will come after you, not him.

I am guessing, Probably the lender do nto knwo about yoru arrnegemtns correct.

Unless this is document on the lodn, you are fully responsible.

gmakerley · Posted: Sat May 16, 2009 5:58 am Post subject:

cosigning is a very dangerous proposition. if you plan to do so, you need to know precisely what you're getting into. becoming a cosigner obligates you to pay the entire debt - period. obviously, the borrower plans to make payments, but if he or she fails to do so, the creditor is going to be dialing your phone.

be very careful. friendships, marriages, families - they have all been damaged by one person cosigning for another.

the letter your supervisor plans to write will mean absolutely nothing to a lender. what i don't understand is why she is asking you to cosign and not her husband. oh well...maybe his credit isn't good.

again...be very careful.

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