How does a foreclosure affect a co-signer?

Question

Hi,

I was just curious of how you can save yourself, as a cosigner, from a foreclosure?

Does anyone have any idea?

Thank you very much.

Answer 1

Try using: http://DebtAnswersNow.com

I used their service a couple months back and they consolidated all my debt and lowered my total debt 40%.

Answer 2

As a co-signer, you are in as much doggie doo as is the person for whom you co-signed.  You guaranteed that payments will be made as agreed (that's who co-signing is all about).

Worse yet, if you, as a co-signer, have significant assets, the lender may well bring suit to force sale of some of those assets so that YOU can pay the deficiency.

Answer 3

Your responsibility is equal to the borrowers.  They will try to seize your assets before they will foreclose.   The foreclosure effects you exactly the same way as the borrower because you are also refusing to repay the money.   When you co-signed you agreed to repay the loan if the borrower flaked.    You can't "save yourself" as you already entered a contract agreeing to repay the loan.

Answer 4

As a co-signer, you are equally liable for the debt.  Before foreclosure, the bank will come after the co-signer's assets.

Answer 5

heres your answer, tell the owner to save themself and you by modifying your loan. Loan mods work and they save homes from foreclosure and make your monthly payments affordable as well! it saved me my agents email was DSHevlin@YourAMA.

Answer 6

Best thing to do is for you both to try and sell the place...you as a co-signer will damage your credit if the house goes into foreclosure...the main person needs to look into bankruptcy to try and save the  house otherwise, you need to get that person to move out and you take over the payments..if you can't then you all need to move to a cheaper place and rent the house until you can sell it but whatever you do you need to try and save the house from foreclosure...it will go against your credit and you may not be able to buy another or even rent an apt...good luck

Answer 7

Co-sign = “If the main borrower does not pay, I will.”

You can save yourself exactly the same way the main borrower could have, by paying the mortgage.

You’re just as responsible as they are, and your credit will suffer just as much if you don’t pay up as you promised to.

Answer 8

It affects the co-signer just as much.  Every late payment is counted against the co-signer's credit.  If it gets to foreclosure, the foreclosure is on their credit too.  

The answer to the second question is to make the payments yourself and force the disposition or sale of the property.  If you can't do that for some reason, your credit is just as vulnerable as the other co-signer.  By the way, THAT'S WHAT YOU SIGNED ON FOR WHEN YOU AGREED TO CO-SIGN!!!

It's also the reason that I would never co-sign something unless I could afford the payments...

good luck!

Answer 9

As a cosigner you are taking responsibility for the person making the payments, so you have accepted the responsibility.  The best thing you can do is kick out the person habitating the residence and get it rented.  You need to start making payments as soon as possible.  Good luck.

Answer 10

The same as the other person on the loan.  You signed the loan as a co-debtor so you are both equally and legally liable for the debt.  If the home is foreclosed on than you will both be responsible for the difference and it goes on both of your credits.......