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I would like to know the difference and obligation of each when on a mortgage loan...Co-Borrower ; Co-Signer

banker0679 · Posted: Mon Nov 19, 2007 7:50 pm Post subject:

there arent many loans that will allow you to co-sign for someone anymore.

they list you as a co-borrower.

parents co-sign for student loans or automobiles..and they are financially reponsible for the note. I would still think that the lender will still go after the person they are co-signing for.

jenkin7 · Posted: Tue Nov 20, 2007 3:28 am Post subject:

Hello Wanda,

A co-borrower is an additional borrower whose income becomes a qualifying factor for the loan and is jointly and primarily responsible for the loan repayment. A co-borrower should be on the title of the property.

Whereas, a co-signer guarantees the payment of the debt in case the primary borrower defaults. He may or may not be on the title of the property.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Wanda,

Welcome in this forum.

The above posters have defined the co-borrower and co-signer. I would like to say that co-signer has only obligations but he does not enjoy any right. He signs in the loan documents but his name is not listed in the title where as the co-borrower's is listed on the title and the loan also. Co-signer is actually taking the risk for the original owner.

Thanks,
Larry

jasonredding · Posted: Wed Nov 21, 2007 11:09 am Post subject:

Wanda,

I agree with all posters above on the differences between a co -borrower and co-signer though in today's market most lenders will simply refer to the second person as a co-borrower. The biggest thing to rember though is that you are both equally responsible for the debt and liable. Whether it is a credit card, auto payment, or mortgage. If those payments are not made or the borrower gets forclosed upon your credit will be severely impacted. The excuse of I was just a co-borrower or co-signer it really was not mine has no wait in the eyes of lending institutions or banks.

Jason Redding
Senior Mortgage Specialist
Nickel City Funding
Orchard Park, NY 14217
877-865-2912

rseed · Joined: 12 Aug 2009 Posts: 1 1.40 Dollars($)

The cosigner on a loan has the same responsibilites as the primary borrower. The cosigner is repsonsible for the monthly payments as well as the entire debt. If the borrower is delinquent the cosigner is responsible to make the payments. When a loan is guranteed, generally it is the repsonsibilty of the guranteeing party once the loan defaults not simply after the primary borrower is delinquent on monthly payments.

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Guest

I co-signed a student housing loan for my niece. It is a deferment as long as she is a full-time student. She neglected to send in the properly executed deferment forms and the loan went into default for 3 months. It was reported to the credit bureau as delinquent. This has severly affected my credit. She is and has been a full-time student; however, because the forms were not received on time the loan was reported as over 90 days past due. What recourse do I have against my niece as my credit has been destroyed. My creidt score went from 780 yto 642.

jerry · Posted: Mon Jan 18, 2010 2:48 am Post subject:

Hi Linda,

You do not seem to have any legal recourse against your niece in this situation. When you co-signed on her loan, you became liable for the loan payments. In case she defaults on the payments, the lender will come after you and your credit will also be affected. As a co-signer, you are as much responsible for the loan as your niece. However, if you do not want your credit to be affected, talk to your niece and ask her to make payments on time from now on.

Thanks,

Jerry

Guest

I paid off a $42,500 college loan for my neice. What happens to me if she won't pay me back?

adonis · Posted: Tue Jun 07, 2011 11:33 pm Post subject:

Hi Korksteen,

If you have written documents pertaining to that loan, then you may be able to take legal actions against her. You should contact an attorney and check out what options you have.

gmakerley · Posted: Wed Jun 08, 2011 7:25 pm Post subject:

Korkstein, you said "I paid off a $42500 college loan for my niece."

I didn't notice that you said anything about her being obligated to pay you back. Why would she be obligated? Did the two of you enter into an agreement that stipulated she must repay? Were you a cosigner and you paid off the debt that she was unable to pay?

If you two had an agreement, then it would seem you'd be able to enforce that. However, if you were simply a cosigner and paid off her loan, then she'd be in no way responsible for that debt, in my opinion. Keep in mind that I'm not handing out legal advice here, and if you feel the need for an attorney, you should, certainly, seek one who can help you.

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co-borrower & co-signer