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What are the legal differences between a co borrower co maker co signer and guarantor?
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Who is the mortgagor and who is the guarantor?
The mortgagor is the primary borrower on the mortgage- the party who purchased the real estate. The guarantor is the co-signer on the mortgage loan. The co-signer guarantees they will pay the debt if the primary borrower defaults.
What are the legal differences between a co-borrower co-maker co-signer and guarantor?
A co-borrower, co-maker, or co-signer make a promise to a lender to repay a note or complete an agreement. The co-borrower, co-maker, or co-signer are generally not the primary recipient of the note or agreement but simply provide additional guarantees to the lender. This is usually done when the borrower, maker, or primary signer does not provide sufficient security or confidence to the lender.
Is the borrower responsible if the co signer files bankruptcy?
Yes, co-signer means obligated as a guarantor of the note, but the federal bankruptcy can excuse the obligation as part of the settlement.
What is a signer?
There are two separate meanings for co-signer although the latter is the one most often referred to in questions about co-signing:As a co-borrower:A co-signer/co-borrower/co-maker has an equal liability with another. This is in contrast with a guarantor who is liable only if the primary obligor defaults.As a guarantor:A co-signer as guarantor is a third party to the loan who guarantees the loan will be repaid thus reducing the risk of the lender. This co-signer is the person, other than the primary borrower, who signs for the loan and assumes equal liability for the loan. However, the guarantor/co-signer only has a contingent liability. That means they guarantee the loan will be repaid and if the principal borrower defaults the co-signer will be responsible for paying the loan. This is a risky transaction for the co-signer since they are required because the principal borrower has poor credit or no credit and there is a greater chance they will default.
What is signers?
There are two separate meanings for co-signer although the latter is the one most often referred to in questions about co-signing:As a co-borrower:A co-signer/co-borrower/co-maker has an equal liability with another. This is in contrast with a guarantor who is liable only if the primary obligor defaults.As a guarantor:A co-signer as guarantor is a third party to the loan who guarantees the loan will be repaid thus reducing the risk of the lender. This co-signer is the person, other than the primary borrower, who signs for the loan and assumes equal liability for the loan. However, the guarantor/co-signer only has a contingent liability. That means they guarantee the loan will be repaid and if the principal borrower defaults the co-signer will be responsible for paying the loan. This is a risky transaction for the co-signer since they are required because the principal borrower has poor credit or no credit and there is a greater chance they will default.
How long before you can get a co signer off auto loan?
You remain as a co-guarantor until the loan has been repaid or refinanced in the name of the primary borrower.
What is a cosigner?
A cosigner is the person who agrees to pay off the full balance of the loan if the primary borrower fails to pay. A cosigner signs the loan documents and guarantees payment of the loan even if they have no ownership in the property covered by the loan.
Can you be a co-signer on a loan if unemployed with good credit rating?
The reason a lender requires a co-signer is to guaranty the loan will be repaid if the primary borrower doesn't have a strong enough credit record or an adequate income. Indeed, if the primary fails to pay the co-signer is fully responsible for paying the balance of the loan. It is unlikely you would qualify as a guarantor if you are unemployed yourself but you can ask!The reason a lender requires a co-signer is to guaranty the loan will be repaid if the primary borrower doesn't have a strong enough credit record or an adequate income. Indeed, if the primary fails to pay the co-signer is fully responsible for paying the balance of the loan. It is unlikely you would qualify as a guarantor if you are unemployed yourself but you can ask!The reason a lender requires a co-signer is to guaranty the loan will be repaid if the primary borrower doesn't have a strong enough credit record or an adequate income. Indeed, if the primary fails to pay the co-signer is fully responsible for paying the balance of the loan. It is unlikely you would qualify as a guarantor if you are unemployed yourself but you can ask!The reason a lender requires a co-signer is to guaranty the loan will be repaid if the primary borrower doesn't have a strong enough credit record or an adequate income. Indeed, if the primary fails to pay the co-signer is fully responsible for paying the balance of the loan. It is unlikely you would qualify as a guarantor if you are unemployed yourself but you can ask!
What is the difference between co signer and co borrower?
A co-borrower has an ownership interest in the property. A co-signer guarantees the repayment of the loan although they do not own the property. If the primary borrower defaults, the lender can (and will) go after the co-signer for payment. The loan will usually not show up on his credit report, unless the borrower defaults.
What happens when a co-signer dies?
The answer depends on the type of loan, whether the decedent was a co-signer or also a co-borrower, the state laws, whether the co-signer was married and whether they lived in a community property or separate property state, whether the loan was in default, and other factors. You can read more about it at the related link.If the co-signer simply enabled a borrower with poor credit or no credit to obtain a loan the lender no longer has a guarantor.
What happens if you are a borrower and the co-signer dies?
If the co-signer dies the surviving borrower is responsible for paying the loan.
Can a co-signer make a primary signer refinance?
No. A co-signer has no such authority over the primary borrower. The co-signer is on the hook until the loan is paid off.No. A co-signer has no such authority over the primary borrower. The co-signer is on the hook until the loan is paid off.No. A co-signer has no such authority over the primary borrower. The co-signer is on the hook until the loan is paid off.No. A co-signer has no such authority over the primary borrower. The co-signer is on the hook until the loan is paid off.
