Cosigner >> Back to glossary
If you are not financially stable or have no established credit rating, you may find that if you go to borrow money you will be asked to produce a cosigner. This means that you must find someone that is willing to assume your debt if you do not pay it.
Most individuals are reluctant to act as a cosigner because of the responsibility that comes with it. Any financial institution that has loaned money on the basis of having a cosigner secure the loan will have the legal right to go after this person to fulfill the obligation of the contract if the original debtor defaults.
There are usually criteria that the cosigner will have to meet before they can even qualify to take on this responsibility. They will normally be subjected to the same credit check and determination of financial stability before the lender will accept them as your loan backer. The lender has to be sure that they can reasonably assume that they will be able to collect the monies owed by the cosigner if you as the original borrower become delinquent.
As with most other financial transactions there are rules and regulations that govern the use of a second party backing the loan, and any course of action that may be taken against them. It is not uncommon for the real estate lenders to ask for a guarantee from a second party.
If you have found yourself as a cosigner and have ended up in a bad debt situation you will need to seek out the right resources to help you with the debt solution that will get you out of these financial troubles. Don't just assume that you can refuse to pay the debt even through it was not initially yours. It is going to affect your credit rating.
We can help here at DebtCafe USA by connecting you to professional debt solution experts who know exactly how to approach cosigner debt. These experts know the law and how it pertains to you now that you are viewed as the debtor. These debt solution negotiators will act on your behalf once you agree that you want to be free of this debt obligation and choose to follow their suggestions. You may have made an initial mistake of becoming cosigner in the first place, but don't make a second mistake of not finding the right debt solutions specialists to help you solve the problem. Go ahead and fill in our no obligation form here as we are ready, willing and able to help.
