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There is a potential that you could lose your house but that would be very late in the collection process. When you co-sign a loan (doesnt matter if it is a student loan or otherwise) you are assuming FULL responsibility for the obligations of the loan (including payments due as a result of default and late payments) in the event that the primary borrower defaults. The creditors have the option to come after you and it is possible they would go after your house.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoThis is a complicated question to answer. When you co-sign for a loan you are responsible for payments in the event that the primary borrower defaults on their obligations. When this happens, the creditors can go directly after you and this may or may not include your house although I highly doubt that would be the first thing they would come after. You may also have to pay late fees or collection costs associated with a default on the loan. The creditor can use the same collection methods against you as against the primary borrower. Also, If the primary borrower doesn't pay and goes into default, it will ruin your credit.
Cosigning on another person's debt may affect your own ability to receive loans. The debt is also considered yours and raises your own outstanding balance.
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If husband and wife is on the loan for a home and the wife goes bankrupt will the husband lose the home?
if they cant pay for it they will lose the home
Should you use your home equity loan to pay off your car loan?
I would need more details but in general, the answer is no. If you don't pay your car loan, you lose the car. If you get a home equity loan and can't repay it, you lose the house - big difference.
Will using home equity to pay off a large high interest rate student loan increase the risk of losing the home if payments are not made?
If you borrow against your home to pay off ANY type of debt and then do not make the payments, you can lose your home to foreclosure.
What is the best way to refinance a home loan rate?
The best way to refinance a home loan rate is to obtain another loan without having a mortgage. In this way in the event of inability of payment, the customer will be insured and not lose own home.
In what situation might you need to refinance with a home loan?
You may need to refinance your home loan if you need to get money against your home. For example you are in the situation you lose your job and have no money, some people refinance , and borrow against their home in order to get money to live, however it does create a second loan.
Can you lose your home if you default on your second mortgage?
Yes. You can lose your home if you fail to pay the taxes, fail to keep the property up, do not maintain fire insurance and other conditions. All of the details will be spelled out in the loan agreements signed when the any loan secured by real estate was set up. Check your loan documents for the full list.
Can you back out of buying a home if you lose your job?
No. Not after you sign on the dotted line when you get your loan. If you fail to pay, then the lending institution is within their rights to foreclose and take your home.
If you recently paid off a student loan how can you get Dept of Education to send you a paid in full letter faster?
I think that a student should get that same amount of wages as regular electician would get unless the company wants to lose an employee.
What are equity loans and how can I get one?
A home equity loan or line of credit (heloc), can be obtained from a bank while putting up collateral. In most cases, this would be your home..in other words, if you fail to make a payment on this type of loan, you can lose your home..so in this economy, be careful!
What is guaranteed mortgage loans?
A guaranteed loan of any type is a loan that is backed up by your automobile, home or anything else of equal value that you put up to back the loan. This is not the best type of loan to take out because you can easily lose the item you put up for collateral against the loan if you do not make a timely payment. Many times and depending upon the contract for the loan, you could lose your car if you miss a payment for only one day. Read the fine print.
Is student loan consolidation the same as refinancing student loans?
YES! It is the same, i say this because the appeal of doing either one of those are going to be the same "paying your student loan." Refinancing student loans will take advantage of a better interest rate and consolidating your loans 'lumps' all of them into one. Instead of having several loans with different bills, in consolidation you only have one bill. When you consolidate student loan you are refinancing it but you can refinance without consolidating.
What does a secured loan and unsecured loan mean?
A secured loan is a loan in which there is physical collateral, meaning there is a physical item of worth that can be taken by the bank if the loan is not paid. Examples of this include a car loan or mortgage (house loan); the car or house are the collateral and therefore are the 'security' that the bank will not lose money on the loan. An unsecured loan is a loan in which there is no physical collateral, meaning there is no item of worth the bank can take if the loan is not paid. Examples of this include credit card debt or a student loan; in these cases, if the loan isn't paid the bank has to use a collections agency to try to get the money back.
