Getting my name removed as a cosigner of a home loan?
Someone I know is looking to buy a house and they are asking me to cosign for them.
The only problem is I dont have a house of my own yet and will be looking to buy one in the next 2-3 years. The bank is telling me that if I come and fill out an application and get accepted and cosign for them that as long as they make the payments on time for the next 1-2 years my name can be removed from the loan.
Everything I have read online seems to say there is basically no way to get your named removed from a loan like that. I guess Im afraid that in a couple years time when it is time to get my name removed from the loan the bank wont allow it.
Anybody dealt with this before? Do banks usually allow cosigners names to be removed from loans like that?
- Anonymous10 years agoBest Answer
When you say "the bank is telling" you your name can be removed, who exactly is telling you that? The loan officer who stands to earn a commission by getting this loan approved, which, I assume, would not be be approved solely on the strength of the borrower? If the bank doesn't have confidence in that borrower, why should you?
And, don't trust that you will be able to have your name removed as co-signer later on. The only way that could happen is if the borrower is able to qualify for the loan completely on his or her own, and the financial institution is willing to renegotiate that loan or refinance it. I wouldn't count on it. There are too many variables that could keep that from happening.
Your fears are well-founded. In a couple of years when you are ready to buy your own home, or anything else for that matter, you could find your credit ruined if the borrower is unable to keep up with the payments, for example, if s/he lost his/her job.
In summary, don't co-sign. Follow your good instincts on this matter.Source(s): financial institution executive
- ?Lv 710 years ago
DO NOT DO IT. You will never get your name removed from that mortgage. Tell your friend you cannot since your credit stinks
- njyogibearLv 710 years ago
do NOT cosign anyone else's loan!