I feel bad for the parents, but it has always been the case that as co-signer you assume responsibility for payment in the event of default. The reverse is true if the cosigner becomes deceased or goes bankrupt, the borrower must pay off the loan. Some lenders provide an option for a co-signer release, which removes your co-signers liability on your loan and allows you take responsibility for the balance of the debt yourself. In order to qualify, you usually need to have finished school and not missed any payments, among other factors. Not every lender will be willing to grant a co-signer release, so be sure you read the fine print before you sign the contract. When you cosign the loan will show up on the primary borrowers and cosigners credit report. When cosigning for a borrower that account becomes part of your credit history affecting your credit as well.
Posted on: Mon, 04 Aug 2014 18:00:39 +0000
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