co-signing a loan

[cali22]

California -- Is it true that if you co-sign a secured home loan that you will not be affected if the people you co-signed for are no longer able to pay for the home as long as you provide proof (such as cancelled checks) that you do not pay for that loan? It's a really weird question from me to ask but this is according to a loan processor that I talked to. My sister wants to buy a home but since her boyfriend (who's paying for half of the loan payments) filed for bankcruptcy, they couldn't add his income to hers which is not enough to make the loan. I know this is not how car loans work, is it different for secured loans or home loans where propert value goed up instead of down? Thanks.

 

[HomeGuru]

It is not true.

 

[SpeckKiller]

When speaking of a co-borrower, the only time cancelled checks have any rellevance, is when a co-borrower is applying for a loan you can use that to prove that the debt is not the co-borrowers loan. It is only used so the debt would not be included in the debt ratio. If the borrower does not pay it is your responsibility.