payment on the townhouse. Does this act affect my credit as a co-signer for the townhouse?
Thanks for your help, have a good day.
2007-11-11 03:03:35 · 7 answers · asked by make_it 2 in Business & Finance ➔ Renting & Real Estate
It only affects your credit if you can't make the payment on the townhouse. As co-sign, you're responsible for the payment if the primary can't make the payments.
2007-11-11 03:12:09 · answer #1 · answered by Joe M 7 · 2⤊ 0⤋
You asked about bankruptcy, and that has no effect that I'm aware of on you.
What will hurt you is if they go through foreclosure, or get behind on their mortgage payment.
If that payment doesn't get made, it will impact your credit.
If there's already been one payment thirty days late or more, it has already hurt your credit.
When you cosign, you are agreeing to be responsible for getting the payments to the lender, in full and on time. If that doesn't happen, it's going to hurt your credit every bit as badly as theirs. If you weren't agreeing to be fully responsible for that debt, there would be no reason why the lender would agree to consider you as being assistance to the cause of loan qualification. It's not like being a character witness; you are accepting full responsibility for that loan. It will not only hurt your credit, that lender may also be able to come after you for any deficiency in the loan. Talk with an attorney licensed in your state for details.
(The killer is that co-signers are rarely help much in qualifying for real estate loans, because of the way that qualification is determined. Quite often, it's a waste of time to complete their application)
2007-11-11 05:29:44 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
It may.
You don't say if the house is going into foreclosure. Just because he is going bankrupt doesn't mean that the house will be lost. He needs to keep the payments current and ontime. If he does this, you will not be affected at all.
Now less assume that the house is forclosed. Then YES YES YES it will affect you several way. At the least, it will show that you lost a house and it will show on your credit report. However, if the lender shows a shortfall on the mortgage, YOU will be on the hook for this money. Especially since your "friend" is bankrupt and they can't come after him.
May sure that the house payments on on time and up to date.!!!
NOTE: NEVER co-sign for anything. No matter what. Not for friends or family.
2007-11-11 04:03:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Of course it will affect your credit, unless you take over making the payments, which is what you agreed to do when you co-signed the mortgage with the other person. You need to start talking with the lender and the other owner immediately.
2007-11-11 08:37:39 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
I believe it does. Usually you can find a lawyer who will give you a free consult, so you may want find one who'll answer that to be certain, but it is my understanding that if a payment isn't made, and you're on the contract, it comes back on you.
2007-11-11 03:12:33 · answer #5 · answered by colder_in_minnesota 6 · 0⤊ 0⤋
you bet it does, can you buy him out? The creditor can
after you since your friend doesn't have the money, You'll
have to claim bankruptcy also. You better consult with
an attorney.
2007-11-11 03:17:25 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Yes it could. Get an attorney right away to show you how you can protect yourself.
2007-11-11 03:21:33 · answer #7 · answered by bombastic 6 · 1⤊ 0⤋