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Does the lender by law have to notify a co-signer that the buyer is behind on payments in New York state?


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2015-07-15 18:32:14
2015-07-15 18:32:14

Does the co-sugnor meet these requirements??? http://assembly.state.ny.us/leg/?cl=122&a=72 Section 9--605. Unknown Debtor or Secondary Obligor. A secured party does not owe a duty based on its status as secured party: (a) to a person that is a debtor or obligor, unless the secured party knows: (1) that the person is a debtor or obligor; (2) the identity of the person; and (3) how to communicate with the person; or (b) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: (1) that the person is a debtor; and (2) the identity of the person.

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No, but if the borrower misses enough payments, the cosigner will start getting collection calls as well.

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They should since they are just as responsible for making payments as the primary.

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No, the cosigner may be the first one the lender attempts to collect from if the primary borrower defaults. That will probably be the only "warning" one receives.

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No. There is no legal obligation for the lender to notify the cosigner that the primary borrower is in default.

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The cosigner was probably "notified" that any funds held by the lender would be attached at the time the loan was signed. In order to garnish wages or place a lien on other property, the lender would have to go to court and obtain a judgment, in which case the cosigner would have received a summons from the court.


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