What Are the Responsibilities of a Co-Signor in a Mortgage Foreclosure?
people on it. Every stipulation in the promissory note applies to the borrower (signor) and co-borrower (co-signor) equally. As two borrowers, whatever the collateral may be, it is owned by both borrowers, unless it is otherwise registered in only one of the borrower’s names. Normally, the department of finance and administration, using an automobile as an example, will register the car to all names on the note, not just one of them. In the event of default, foreclosure can occur after a period of time. The co-signor is equally responsible for everything. The credit history is reported on both borrowers. The foreclosure lawsuit is filed against both borrowers. The deficiency balance, after the sale of the foreclosure (if any), is the responsibility of both borrowers. The best way to know what you are signing is to ask. There are laws that prevent creditors or lenders from asking you to sign forms without explaining to you what you are signing. If you just sign what you are told to, you
