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laceyrose...

M$1.00 Funded By Mahalo ? | April 08, 2009 08:46 PM

I cosigned on a student loan that is currently deferred. What do I need to do to get my name off the cosign so I can buy a house?

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daigakuins...

April 08, 2009 09:39 PM

Unfortunately, cosigning is nearly the same as signing a loan, legally. I.e. your name will be on the loan until it is repaid. So the only way to get your name off the loan is for the loan to be repaid. If that's not something you're able to do at the moment (probably not), you might be able to explain your position to the other party and see if they can take out a different bank loan to pay off the student loan. Then at least your obligation to that loan would be cleared.

Here are some facts and advice from the FTC on cosigning
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre06.shtm

When someone asks for a cosign, usually there is a good reason. It typically means that the lender does not have confidence in the ability or intent of the signer to pay the loan.

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Voted as best: thekid, stacy90802, bbrookin, jellylala

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davepamn

April 12, 2009 07:41 PM

1. As co-signer, you are the guarantor of the loan
2. Loan and collection agencies will go after you harder than the primary borrower.
3. Collateral assets will become vulnerable to collection agencies, if you default.
4. Don't be late on payments nor attempt to defer payment. You don't want the loan to go to collections. Collections will automatic penalize with addtional costs.

My advice is sell assets and payoff the debt quick.

Getting a new home will not be an option. Requesting a cosignature is to be avoided.
Source(s):
http://ficoforums.myfico.com/fico/board/message?board.id=studentloans&m...

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Voted as best: masontx, mrnemo, lawstudent

davepamn

April 12, 2009 07:42 PM

Failure to pay off the student loan will lead to legal action and credit rating damage.

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