A friend of mine co-signed for a new car for someone who promised to have their name removed after a few months. It has been 8 months and they have refused to transfer the car lien title into their name only. Is there anything that the co-signer can do to have their name removed.
2006-11-03 18:22:12 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
The binding agreement to be a co-signer is one made with the lender not the co-borrower. A co-signer is required by a lender because the borrower is a credit risk for one or more reasons and they want a second party to guarantee payment in the event of default. The only way a borrower can have the co-signer's name removed from the debt is by refinancing with a new lender or by consent of the current lender. It's possible, though not probable, that the lender will release the co-signer after eight months, however, if the co-borrower has had a significant change in circumstances (i.e. improvement in credit score, reduction in outstanding obligations, increase in income) the lender may release the co-signer. Of course, if the co-borrower has been late in payments, your friend is in it for the long haul.
The only thing your friend can do is ask - the lender.
2006-11-03 19:59:57 · answer #1 · answered by Maddy Waddy 2 · 0⤊ 0⤋
I am not an attorney; but,to my knowledge, there isn't anything a co-signer can do to have his/her name removed from a legal lien, mortgage, or loan. You may want to consult a lawyer.
2006-11-03 18:35:29 · answer #2 · answered by Baby Poots 6 · 0⤊ 0⤋
Goto the bank or financial institution and check with them.. Or take em to court!
2006-11-03 18:34:42 · answer #3 · answered by Just Me 3 · 0⤊ 0⤋