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The "way out" is to pay the money. That's what you promised the bank you would do. Bankers are very good at determining who is likely to default on a loan. That's why your friend needed a cosigner.

Don't ever ever cosign a loan, even if it is your parents if you know they are not good with money. Not even for close friends. My husband has made the mistake of cosigning a close friend's loan 5 years ago. Now they are not close any more. This friend has been missing payments and paying less than the minimum payment. The loan amount has gone up a lot since it is a private loan with higher interest rate. The consigner loan has negative effects on my husband's credibility. We have tried all means but couldn't get his friend pay it off ASAP. Some people are just so bad with money. I am guess in 5 years, it will finally catch up with us. Then we will have to pay a huge lump sum of 35K for an loan of 15K originally. So don't trust anybody except yourself.

Check the type of loan you cosigned. It is very difficult to get out of some private student loans. Not even if you declared bankrupcy. Or more unfortunately, if your cosignee went bankrupt, you would end up paying for it. The possible way out will be have the person take out another loan to pay off the one you cosigned. But only if the person's credit score has improved so much that now he is qualified for a loan.

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Q: Does a co-signer have any ability to get out of a loan?
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Who is consigner?

If a lender does not feel comfortable with what they perceive as your ability to repay a loan they may ask that you get a cosigner. The cosigner is a person who would be guaranteeing the loan repayment if you were to default.


Who is a consigner?

If a lender does not feel comfortable with what they perceive as your ability to repay a loan they may ask that you get a cosigner. The cosigner is a person who would be guaranteeing the loan repayment if you were to default.


What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?

If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.


Is a lender required to evaluate whether a cosigner should be allowed to cosign?

The lender will evaluate the cosigner's ability to repay the loan. As long as the cosigner is mentally competent, his health is not normally an issue. If the family had gone to court to have a conservator or guardian appointed for the grandfather BEFORE the loan was signed, it would not be valid.


If a borrower signed a loan for a cosigner is there a way the loan can be changed into the cosigner's name without refinancing?

No.


Can you switch the cosigner to the primary?

Yes, you can switch the cosigner to the primary on a loan. The way to do this is to have the loan refinanced.


How can a cosigner be removed from the loan?

The only option is for the loan to be refinanced without the particpation of the present cosigner.


What is required of a cosigner of a loan?

Almost anyone can be a loan cosigner, however they must be creditworthy, accept and intimately understand the responsibilities which accompany the role, and meet any of the lender specific requirements.


Who has control of company vehicles with a cosigner?

Control in what sense? Sell them, transfer title? The cosigner guarantee's the loan on the vehicles and would need to agree to selling them and sign the title. You can use them for any purpose, do anything with them including burning them. You will still be responsible for the loan and if not you the cosigner will have to pay the loan off.


What happens to a cosigner of a car loan when the primary loan holder files bankruptcy and the loan is discharged and they do a voluntary repossession?

They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.


How can one remove a cosigner from an equity loan if the cosigner is not on the first mortgage title?

The title has nothing to do with the loan. The loan will need to be refinanced using a different cosigner or only the primary borrowers.


If your a cosigner and want to remove your name before the loan is paid off will this affect your credit in any way?

A cosigner cannot simply remove their name from the contract. The cosigner is obligated equally with the primary borrower until the loan is paid. A cosigner's credit history will be affected, hopefully in a positive way.