Cosigning loan risk

[Buck479AD]

In New York. If I cosign a loan & it goes into default, could the lender try to to take my home or other property that I own but not associated with the loan. The loan is being used to refinance property now owned by the borrower & is worth well more than the amount to be financed. What is the name of your state (only U.S. law)?

 

[Antigone*]

In New York. If I cosign a loan & it goes into default, could the lender try to to take my home or other property that I own but not associated with the loan. The loan is being used to refinance property now owned by the borrower & is worth well more than the amount to be financed. What is the name of your state (only U.S. law)?

All of your assets are exposed to undue risk when you cosign a loan. I always recommend that one think twice about signing on with someone else ~ why is it that they need your good name? Obviously they've ruined theirs.

 

[Zigner]

To put it another way...
The bank thinks this person is not a good risk. Why do you think s/he is a good risk?

 

[Buck479AD]

Thank you. I appreciate your words of wisdom, but they do not answer the question. We are two business people trying to make a deal. By my cosigning this loan, there will be a much lower interest rate. Thank you.

 

[Antigone*]

Thank you. I appreciate your words of wisdom, but they do not answer the question. We are two business people trying to make a deal. By my cosigning this loan, there will be a much lower interest rate. Thank you.

I did answer your question:

All of your assets are exposed to undue risk when you cosign a loan.

If this is a business loan through a financial institution, also be ready to sign a personal guarantee.

 

[Buck479AD]

Zinger- I know the person a long time & they are trustworthy. But business is business. I just want to know all the down sides & specifically how cosigning can impact my personal property. Im not worried about my own credit rating.

 

[Zigner]

Zinger- I know the person a long time & they are trustworthy. But business is business. I just want to know all the down sides & specifically how cosigning can impact my personal property. Im not worried about my own credit rating.

You got your answer. Good luck.

 

[Antigone*]

Zinger- I know the person a long time & they are trustworthy. But business is business. I just want to know all the down sides & specifically how cosigning can impact my personal property. Im not worried about my own credit rating.

Zig, can you see it coming ~ we don't even need the crystal ball for this one

Only a fool could care less about their credit rating.

 

[Buck479AD]

For Antigone*of Greece*
Im sorry, but undue risk is not an answer. My question is specific, your answer is very broad & general. Of cours I understand risk & everything is on the table. The question addresses a specifc situation. Thank you sir.

 

[Zigner]

For Antigone*of Greece*
Im sorry, but undue risk is not an answer. My question is specific, your answer is very broad & general. Of cours I understand risk & everything is on the table. The question addresses a specifc situation. Thank you sir.

Undue risk is a PERFECT answer from a free forum. Go pay somebody to tell you the same thing.

 

[Some Random Guy]

The loan is being used to refinance property now owned by the borrower & is worth well more than the amount to be financed.

You realize that the primary borrower is not barred from getting a home equity loan or second mortgage. The property could be underwater very quickly and you as a cosigner would have no say in the matter.

Also, if you want to protect your credit, are you prepared to take over his mortgage payments when he defaults?

For this extra risk to your assets and credit, how much cash or equity are you getting?

 

[Buck479AD]

Zinger- Are you a disbared lawyer or a lawyer wannabe. I Did not ask you for a reply. You gave one & I appreciate it, but keep your sarcastic remarks to yourself.

 

[Zigner]

Zinger- Are you a disbared lawyer or a lawyer wannabe. I Did not ask you for a reply. You gave one & I appreciate it, but keep your sarcastic remarks to yourself.

Well, good day to you. Enjoy your newfound debt!

 

[Antigone*]

Well, good day to you. Enjoy your newfound debt!

Well my friend, you are a much better person than I. I would have told this moron to go to haedes in a handbasket, but then again, that is just me

 

[Zigner]

Well my friend, you are a much better person than I. I would have told this moron to go to haedes in a handbasket, but then again, that is just me

...It's a New Year's Resolution! A kinder and gentler Zigner