Getting out of a cosigned loan

handcuffs, prisoner, crime-921290.jpg
getting out of a cosigned loan
Posted by: christina atkins May 30 2003, 09:27 AM

i have recently co signed a loan for purchasing a mobile home in fla. my boyfriend and i, at the time, decided to buy a mobile home and set it up on his property. since then we have broken up and r both still living in and splitting expenses on this house and property. for the loan i had the gold credit and he had the property to put up as collateral. he has no credit history-not credit cards or anything. he owns 2 cars and had never had a loan before for anything. i want to give up my legal responsibiltiy to the property and home title and not be liable for any legal responsibilities to the home because i wish to move out. will we be able to get our loan paper work changed w/ out re-financing charges? is there a way he can get another co-signer on the loan so that i can be removed? i.e. his mother or aunt or something? 

Posted by: loanuniverse May 30 2003, 07:03 PM

I am sorry to be the bearer of bad news. Although possible, being able to get out of the responsibility is rare. In order to get out, you will need the lender to be willing to let you out and make modifications to the original loan agreement.

Put yourself in the place of the lender….. Why would the lender do that? There just isn’t any incentive. Your idea of co-signer replacement {getting his aunt or another relative to take your place} will depend on getting that relative to accept and more importantly getting the lender to accept. I would talk it over with whomever you dealt with to get the loan and run the idea by them before spending any more time on it.

There are also other options you can take:

1) Sell the property and payoff the loan.
2) If you trust your boyfriend to keep making the payments, you can come up with an arrangement to let him stay behind and keep paying.

I just don’t see how your plan would work without a lender that is more understandable than most.
Author: Commercial Loan Underwriter