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The co-signer was notified when the original loan documents were signed. Co-signing a loan makes both parties 100% liable for any unpaid balance. Both parties know the money is due and are expected to understand the terms of the loan before they sign. Lenders don't care about the specifics of where the payment comes from (as in; "He always made the payments before the repossession") They have no obligation to further notify them upon default.

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โˆ™ 2005-10-03 16:22:38
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Q: If a loan is cosigned and the original borrower defaults does the lender legally have to notify the cosigner?
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Related questions

What does it mean to be a cosigner for a car?

With your good credit you sign a contract to pay off the loan if the original borrower defaults.

If someone cosigns on a vehicle loan does it affect that their credit?

Yes. If the original borrower defaults, and the cosigner is unable to take over the debt.

What does severed from a judgment meanI was severed from a judgment but it turned up again. A lawyer sent a subpeona to my job . Can i be responsible for this judgment.I was the cosigner.?

You may be held responsible for the judgment if the original borrower fails to pay. When you cosigned for the loan you were agreeing to pay it if the borrower defaulted.

How long does a cosigner need to be on the contract?

untill its paid off * The other option is for the primary borrower to have the loan refinanced without the participation of the original cosigner.

What are the options if an exfiance wants off a cosigned student loan but the borrower cannot get another loan to pay off or refinance the cosigned loan and no the loan has never defaulted?

Since your ex-fiance cosigned on the loan, they are just as much obligated to the contract as you are. The only way they could get their name "off the loan" was, as you said, for the original borrower to obtain a new loan, in order pay off the original obligation. If this is not possible, then she is locked into the original contract.

How do you get your name off of an auto loan that you cosigned on if other party cannot get another loan and has nobody willing to take over as cosigner?

A cosigner cannot be removed from the debt obligation except by a refinancing of the loan without the original cosigner's participation.

Do you need your cosigner to sign when you refinance?

If you need a cosigner they must sign because a co-signer is a person who accepts responsibility for repayment of a loan, credit card or other debt along with the original borrower. However, if the institution giving you the new loan doesn't require a cosigner, you don't need to have the cosigner on your original loan sign anything.

If someone cosigned a lease to your apartment can they take their name off the lease even if you have been paying the payments?

No. Once a cosigner has signed the contract the only way they can be removed from the responsibility is a new agreement being made without the assistance of the original cosigner.

Can a cosigner for a loan be relinquished from repaying the loan?

Only one way, have the borrower consolidate the loans without you being a cosigner. Then the original loans are paid off, and a new loan is made in only the borrowers name.

Is a cosigner responsible to pay a credit card debt if the credit card limits are increased from what was originally cosigned?

The creditor would likely claim the cosigner is still responsible, but unless it is in the original agreement that such increases are part of the contract the cosigner could make a case for being relieved of the responsibility or only being responsible for the origninally quoted amount.

Would a cosigner be liable for debt?

Absolutely ! That's the whole point of someone co-signing the agreement. If the original person defaults on payments, the co-signer becomes liable !

Do you have a right to take a car away if you are the cosigner?

Well if the original person that you co-signed with defaults on the payments and you are stuck with the payments, technically it is your vehicle and you can take the person to court and take control of the vehicle.

Can a co-signer take possession of a car if the primary borrower does not have auto liability insurance in Texas but the lender has taken out insurance to cover the car?

Yes, They can because that means that the primary borrower has failed to meet the requirements of the lender by maintaining coverage on the car. You are already in Default and subject to Repossession by not having the vehicle insured. This failure also increases the risk to the cosigner who is a guarantor on the note. If they decide to Repossess the vehicle and call in the note, your cosigner can be sued and will be held jointly and separately liable for the entirety of original note he cosigned as well as any new charges that have been added due to the primary borrowers breech of contract.A co signer can take charge of the car if the person they cosigned for is not able or does not do what they agreed to. When a financial institution takes out insurance on the car it is to solely keep the institution from being sued, it is not to fix or cover the borrower in anyway, but the borrower will have to pay for the insurance that the financial institution takes out, they usually put it onto the end of the note. Best to keep insurance on the car.

Is the cosigner of an auto loan responsible for the loan if the loan was refinanced by the buyer without the knowledge or consent of the cosigner?

No, the refinancing without the consent or knowledge of the original cosigner created a breach of the original lending agreement and the cosigner is no longer legally obligated for the debt.

Can a co signer withdraw his or her name at any given time?

Check the wording of the loan documents (you should have gotten a copy), and/or check with the lender, but probably not. You signed as being co-responsible for the loan - the lender accepted your assurance - now you are as responsible for the loan as the borrower. If fact, you are the co-borrower. If the original borrower defaults and you become responsble for the paymetns, your complaint is with the person you co-signed for.

If you are a cosigner in someone's loan for a line of credit and he is at default what can the cosigner do to take his name back?

Nothing. The only option for being remove as a cosigner is to have the original loan refinanced without the cosigner participating.

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.

If you cosigned a loan and then went bankrupt and the original loan person skipped on the loan are you now liable as the cosigner even though you went bankrupt before?

Yes you are still responsible, especially if you didnt put it in your Bankruptcy, Any obligation you dont include you are still responsible for

Does a cosigner own the property if he pays off the original loan?

The cosigner of the loan owns 1/2 of the property if they are on the title.

Who are the original parties to the promissory note?

The borrower and the lender.

What does cosigner mean?

a cosigner is someone that also signs a note, meaning that if the original signer dose not pay the obligation the second signer or cosigner must pay. It means, if the person getting the loan does not pay it off, the cosigner is responsible for paying the loan off.

Does having a cosigner lower the interest rate?

The cosigner can be held responsible for the loan if the original signer does not repay. Thus, the creditor has another means of access to the money, similar to collateral, and thus the presence of a cosigner lowers the interest rate.

I cosigned a loan and would like to transfer my obligation to my daughter. What should I do?

You need to discuss this situation with the original lender.

Does a cosigner to an auto loan have to report it on taxes?

Yes because they are dually responsible for the car's payments. The loan also likely depended on their credit or income in order to purchase the vehicle; therefore, they have not only cosigned on the loan, they have co-purchased the vehicle. Imho, No ... makes no sense, especially if nothing has been paid by the co-signer. Besides, the interest on auto loans is not tax deductible. I was a co-signer on my sons car and never had to report anything on my taxes. The co-signer is only responsible for the loan in case the original signer defaults.

Does cosigner have to pay back loan if original signer dies?

Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.

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