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How is the co signer affected if the primary borrower defaults on a home equity loan?
Wiki User
∙ 11y ago
The bank providing the loan will go after both the primary borrower and the co-signer to get the loan paid back. If the co-signer has more assets/is more liquid than the primary borrower, the bank may just focus on the co-signer as both parties (the co-signer and primary borrower) have full responsibility for the debt regardless of who benefited from the cash.
Wiki User
∙ 13y ago
Wiki User
∙ 11y agoThe co-signer will be responsible for paying the loan. If they don't pay their credit will be ruined. That is the reason why lenders require a co-signer, to increase the likelihood the loan will be paid. The co-signer is equally responsible for paying the loan.
The co-signer will be responsible for paying the loan. If they don't pay their credit will be ruined. That is the reason why lenders require a co-signer, to increase the likelihood the loan will be paid. The co-signer is equally responsible for paying the loan.
The co-signer will be responsible for paying the loan. If they don't pay their credit will be ruined. That is the reason why lenders require a co-signer, to increase the likelihood the loan will be paid. The co-signer is equally responsible for paying the loan.
The co-signer will be responsible for paying the loan. If they don't pay their credit will be ruined. That is the reason why lenders require a co-signer, to increase the likelihood the loan will be paid. The co-signer is equally responsible for paying the loan.
Wiki User
∙ 11y agoThe co-signer will be responsible for paying the loan. If they don't pay their credit will be ruined. That is the reason why lenders require a co-signer, to increase the likelihood the loan will be paid. The co-signer is equally responsible for paying the loan.
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What do you use a mortgage for?
A mortgage is generally used for the purchase or improvement of real property by prudent borrowers. However, in the United States home equity mortgages have become popular. Under a home equity mortgage, the owner is enticed to use the equity they have in their home as money to play, purchase luxuries or pay off credit cards. The real property is used to secure the equity mortgage. If the borrower defaults the property is taken by the lender by foreclosure.
Are home equity loans secured by borrowers assets?
Yes, given that the "borrower's assets" in this case are the equity the borrower has built up in their home. In a home equity loan, you are borrowing your own money, in effect. And if you don't pay it back to yourself, it comes out of the value of your home when you sell it.
Can a home equity loan be used for a downpayment on another home?
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. There is no restriction on how we can use the money from Home Equity Loan.
Are home equity loans harder or easier to obtain than other types of loans?
A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.
What is meant by equity credit lines?
A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term) where the collateral is the borrower's equity in his or her house.
Does a co-signer on a home loan have a share of any equity when the property is sold?
NO! A co-signer is someone who says they will be responsible for the debt, if the original borrower defaults. They have no right(s) legally or morally to equity or ownership in the property.
What is a reverse mortgage and are they safe?
A reverse mortgage is a loan for people 62 or older. It uses the equity of their primary residence as collateral and can be dispersed in a lump sum or in monthly payments. The loan comes due when the borrower dies, sells the house, or moves out for 12 consecutive months. If the borrower defaults, the home can be sold to repay the loan--and this could be a potential concern for applicants.
What do you use a mortgage for?
A mortgage is generally used for the purchase or improvement of real property by prudent borrowers. However, in the United States home equity mortgages have become popular. Under a home equity mortgage, the owner is enticed to use the equity they have in their home as money to play, purchase luxuries or pay off credit cards. The real property is used to secure the equity mortgage. If the borrower defaults the property is taken by the lender by foreclosure.
Are home equity loans secured by borrowers assets?
Yes, given that the "borrower's assets" in this case are the equity the borrower has built up in their home. In a home equity loan, you are borrowing your own money, in effect. And if you don't pay it back to yourself, it comes out of the value of your home when you sell it.
Can a home equity loan be used for a downpayment on another home?
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. There is no restriction on how we can use the money from Home Equity Loan.
Is there an equity of redemption for a second mortgage holder in Connecticut?
Equity redemption is a right that only applies to owner/mortgagor/borrower not lender/mortgagee; therefore, the answer is NO.
Are home equity loans harder or easier to obtain than other types of loans?
A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as home repairs, medical bills or college education. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.
What is meant by equity credit lines?
A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term) where the collateral is the borrower's equity in his or her house.
What is debt to equity conversion?
Debt to equity conversion is also known as hybrid transaction or debt-equity swap. In such a swap, the borrower is allowed to convert his debt into equity shares and the lender of the loan, hence, becomes the shareholder in due process.
Can you use your condo your primary residence for a equity line of credit?
If you live there, of course. If you do not live there, then it is not you 'primary residence'.
Why owner's equity is affected by the choice of particular asset and liability measurement?
Cleopatra
Can a bank require the borrower to pay down a home equity line of credit?
It depends on the loan documents. I imagine most promissory notes for these type of loans have some paragraph in there which gives the lender this right.AnswerA home equity line of credit is a mortgage and, of course, the bank can require the borrower to make payments. The payment terms are in the documents that you executed when you granted the mortgage to the lender.
