Auto cosigner
My son consigned for my daughter 3 years ago on an auto loan. He is trying to purchase a house in Minnesota. A realtor told him that her loan is holding him up. On his end he gets messages from Capital One stating she’s behind, but she has documents from Capital One stating she’s current. What can he do to remove himself from her loan?
Terry Says
That is the BIG problem with co-signing a loan for someone else. You put all your credit at risk
First, he should sit down with her and go to CreditKarma.com and find the true status of her loan. They need to do that together, because she will have to input her financial credentials. Everything will be revealed –and he should be sitting in front of the computer with her!
Second, he should pay off the loan — and never co-sign again. If she has other credit problems, they won’t show up on his credit report.
BUT, her bad credit on this loan will continue to haunt him — even if he pays off the loan!
And yes, it will cost him in his ability to get a mortgage, unless some mortgage broker takes pity and sees the receipt for the paydown of the troubled loan.
And, as an afterthought, if she is really in credit trouble with more than this loan (there is never just one cockroach!) she should call the National Foundation for Credit Counseling at 800-388-2227.
