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Co-signing a mortgage doesn't provide any rights. Co-signing creates responsibility. The co-signer is completely responsible for paying the mortgage if the primary borrower fails to pay, even if they don't have any ownership in the property covered by the mortgage. Co-signing is an agreement to take legal responsibility for someone else's debt.
Wiki User
∙ 12y ago
Wiki User
∙ 15y agoYou should think of them more accurately as obligations rather than rights.
If the co-borrower is not also an owner by deed, signing a mortgage gives them no rights in the property. In that case, a co-signer has simply promised to pay a mortgage for property they do not own.
A co-borrower on a mortgage should ALWAYS be an owner by deed also. That way, if one co-signer leaves the remaining co-signer who gets stuck paying the loan will at least own an interest in the property.
Both co-signers are responsible for the debt. If one leaves the other will be held responsible for full payment of the loan. If there is a default the credit records of both borrowers will be ruined. If there is a foreclosure on the property and a sale brings in less than the amount due both may be held responsible for payment of any deficiency unless they qualify for protection under some statutory provisions.
The contemplated transaction should be thoroughly discussed and understood before anyone signs anything.
Wiki User
∙ 15y agoIf you are not an owner of the property, as a co-signer you are fully responsible for paying the mortgage. You have no other rights in the property.
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What are the legal rights of a cosigner on a mortgage?
legal rights of cosigner on mortgage
If we have bad credit will a cosigner help us get a mortgage?
Yes, a person with bad credit can get a cosigner for a mortgage. The cosigner will have to have excellent credit and must go into the office to sign papers to become a cosigner.
What are the disadvantages of cosigning on a mortgage?
If the primary borrower defaults the cosigner can get "stuck" with a huge debt and ruined credit. A cosigner has the same legal obligation to repay a loan as does the primary borrower. In addition, a cosigner does not have property owner rights, only the debt. The real question is why would anyone agree to pay a mortgage for land they do not own. A co-signer has an equal obligation to pay the mortgage.
Does the cosigner on a mortgage need to be on the purchase and sale so the seller is aware of a cosigner?
That is an issue between the mortgage company, the buyer and the cosigner. The seller's only worry is selling the property and getting paid.
What is the procedure to sue to be released from a mortgage as a cosigner?
There is no procedure for this. The mortgage must be refinanced.
Does a cosigner have rights to the car even when its paid off?
No, the cosigner will not have rights to the car after its paid off because the purpose of a cosigner is to pay off the notice if you fail to do so. Being a cosigner does not give them to any rights to the car.
What are the rights of borrowers when the cosigner is considering a lawsuit to force them to take a second mortgage so the cosigner can recover money paid because the mortgage was defaulted on?
The cosigner has the right to file a lawsuit against the primary borrower's to recover his or her financial losses due to the defaulted lending agreement. The procurement of a second mortgage does not seem viable if the primary borrower's credit was not originally sufficient for them to obtain the loan without the need of a cosigner. It is more likely the house will have to be forfeited by means of foreclosure and the cosigner will have to try to recover losses by other means. The primary borrower's best choice is to obtain legal advice as to what their options are before a lawsuit is filed against them.
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 you refinance the house after a year can you take the cosigner off the mortgage loan?
Yes.
If an adult child is a cosigner on the mortgage to her parents' home can she be relieved of the debt responsibility when she marries?
The mortgage would have to be refinanced without the participation of the adult child as cosigner. Debts incurred before marriage do not become the responsibility of a new spouse.
Cosigner's Rights if Tenant does not follow rules?
Not many.
Does a cosigner on a mortgage mean that person is an owner of the property?
Yes it does, Only after you refinance the property may you take the cosigners name of the mortgage loan.
