Posted by Darrin (GA) on March 08, 1999 at 24:58:38:
I’ll let others deals with the question of your options. (I’d sell it.)
Please forgive me in advance for the ranting and raving I’m about to do. It is not personal, I just can’t understand why people co-sign.
You asked how your credit will be impacted if this loan is foreclosed on. Duh! If they can report to the credit agencies (count on it) you will suffer the same consequences as if you were on the loan all by yourself. Let me explain what co-signing on a note means.
By co-signing, you are agreeing to make the payments if the other person doesn’t. It is that simple. Don’t be confused when you hear things like, “You are just helping them qualify.” Translation - They can’t qualify, but since you promise to make the payments for them when they quit, we’ll make the loan.
If it is foreclosed upon, your credit will be worse than if you filed bankruptsy.
If you can’t sell it quickly, ask the lender if they know someone who would like to take over your position. You’ll be embarrassed, but it could save your credit and get you off the hook.
Never allow yourself to be put in this position again no matter how trustworthy you believe the person to be. Learn what lenders know… People who have bad credit tend to mismanage money (of course there are circumstances which may be unavoidable from time to time). Now you know why the lender wouldn’t risk their money without a co-signer.
Good luck. Hopefully you’ll find a buyer or the lender will know someone to help.