One of the many dangers of Cosigning on someone else's loans

[af1 1982]

It's his mother though, for a loan that would have and could have bettered his life. I would cosign on my child's student loans (if I couldn't afford to send them through school) without hesitation

 

[jordanscrub]

Unfortunately when you're college age, school loans require a co-signer

 

[antidope]

Wow thats rough. I would cosign a loan for people that I trust, espeically my children. That is my responisbility as a parent, to provide things for my kids that they could not get themselves. Within reason of course.

Cosigning is not just about trust though. It's about financial responsibility. If the bank believed that they would be able to pay back the loan themselves, they would not require someone else to put their financial health on the line for that person. That's why 3 our of 4 cosigners end up paying the balance of the loan.

I understand and I would cosign someone who I felt could be that. Its hard to truly know if they will be but I just know how much having a cosigner opens the door for people.. I didnt know that last part thats insane. My mother cosigned for me on a loan and I'll be damned if she pays a dime.

 

[kobe4threebang]

Um when u co sign loans u co sign them for life and it was her credit that got him the loan or he wouldn't have needed a consigner don't feel sorry for her one bit

 

[crcballer55]

RIP, but isn't that what co-signing is for? You both take responsibility of the loan.

yes, unless there is a tug at your heartstrings story involved, and then lenders should be shamed into forgiving the debt.

Why? There were no terms in the contract that said she was responsible unless something tragic happens. Even if she hadn't cosigned, his estate would be responsible for paying any balance out of its assets. Only if the assets weren't enough to pay off the loan would it then be forgiven.

I understand the premise here, but if she cosigned, she should have known better that she wasn't able to pay in case something happened where he wasn't able to pay. Once again, her intentions were noble, but she didn't weigh both sides before she put herself on the line.

 

[jehul]

yes, unless there is a tug at your heartstrings story involved, and then lenders should be shamed into forgiving the debt.

Dat sarcasm

 

[miamiboy]

Plain messed up!

 

[mojodmonky1]

RIP, but isn't that what co-signing is for? You both take responsibility of the loan.

yes, unless there is a tug at your heartstrings story involved, and then lenders should be shamed into forgiving the debt.

Why? There were no terms in the contract that said she was responsible unless something tragic happens. Even if she hadn't cosigned, his estate would be responsible for paying any balance out of its assets. Only if the assets weren't enough to pay off the loan would it then be forgiven.

I understand the premise here, but if she cosigned, she should have known better that she wasn't able to pay in case something happened where he wasn't able to pay. Once again, her intentions were noble, but she didn't weigh both sides before she put herself on the line.

hahahaha sorry. like Jehul mentioned, I was just being sarcastic.

full disclosure: i'm a lender... well correction, i work for a lender (not my own company). double correction, i actually write leases, not loans, but thats not really relevant to the topic at hand. i work in the sub-prime sector and have heard every excuse in the book from defaulting customers, co-signers, and their attorneys. i have very little, if any sympathy for them. i sign a contract. i pay it back. i expect the same of the people i lend to.

 

[pharelfor3]

damn shamee

 

[Grine]

tough situation all around, but a contract is a contract.

Werd... Should of read them papers before signing.

 

[Los Angeles]

Im stuck in this situation right now.

About 5 years ago, i cosigned for my Dad on his FJ Cruiser, he lost his job and the car got repoed.

39k left in payments, i want to buy a house but that repo alone is ******g me up even having almost 700 credit score.

SMH.

 

[crcballer55]

hahahaha sorry. like Jehul mentioned, I was just being sarcastic.

full disclosure: i'm a lender... well correction, i work for a lender (not my own company). double correction, i actually write leases, not loans, but thats not really relevant to the topic at hand. i work in the sub-prime sector and have heard every excuse in the book from defaulting customers, co-signers, and their attorneys. i have very little, if any sympathy for them. i sign a contract. i pay it back. i expect the same of the people i lend to.

On NT, you can never be too sure. Most times, emotions override any common sense when something like this happens.

I dealt with evictions on sub-prime mortgages for a couple years and there were so many stories of people wanting the bank to let them stay in the home because they were suckered into taking a bad loan. More times that not (as sad as the situation was), I just proceeded with the eviction because I knew it was likely best for both parties because the home owner couldn't afford the payment even if they wanted to, and the bank would be better off selling the home to a buyer who could afford the home. Hopefully most of the people that were evicted learned to read the terms of the contract before they bought a home instead of just taking the loan officer's word for it. I don't dare to think what would be the consequences if people didn't learn the lessons from this last crisis.

 

[maliz]

SMH

 

[domogotsole]

How long did he attend. Did the school get paid in full for his tuition? If so why isn't mom going after the school for taking payment for time unattended? Unfortunately you sign you should know the consequences. Govt had tax payers pay off the other portion of your sons dept. Be appreciative.

 

[stunnafasho03]

 

[sreggie101]

It's his mother though, for a loan that would have and could have bettered his life. I would cosign on my child's student loans (if I couldn't afford to send them through school) without hesitation

agreed. if you are a parent and you think its perfectly fine to let your kids swim on their own in a time when education costs are rapidly rising, at a greater rate than incomes... fine do you.

but if my kid who will obviously have no credit, needs a loan, allowing him to go to a great school, why the **** wouldn't i support my own child and cosign. if my credit makes that much of a difference, you could only be a bad parent by not cosigning. WITH THAT SAID, ima make damn sure my kid doesn't graduate in some bullsht *** major that has damn near 0 chance of getting a job. period.

natural causes at 24? to whoever thought that was a normal statement..

as far as whether or not the mother should repay the loans? i personally think its a little harsh. She'd be paying off loans for a child she no longer has, and paying them will not make that pain go away any faster. Also whether she could afford it matters because she only cosigned for credit purposes..how was she to kno her son was gonna die down the road?

private lenders are scumbags but what else is new tho

 

[ksteezy]

I have couple of pretty good life insurance policies set up where mom dukes is the beneficiary should i die, since she has co-signed a lot of big purchases for me till my credit improved, most have been paid off but my apt, she co-signed this loan, the amount she gets after my death should be enough to cover that loan, should the bank decide to make her responsible and my funeral costs, EVERYONE should pay for life insurance, do it for your loved ones.

 

[mojodmonky1]

I have couple of pretty good life insurance policies set up where mom dukes is the beneficiary should i die, since she has co-signed a lot of big purchases for me till my credit improved, most have been paid off but my apt, she co-signed this loan, the amount she gets after my death should be enough to cover that loan, should the bank decide to make her responsible and my funeral costs, EVERYONE should pay for life insurance, do it for your loved ones.

i thought you were married? you'd leave it all to your mother and not your wife?

disregard if not married.

 

[mojodmonky1]

private lenders are scumbags but what else is new tho

easy there man.

i can just as easily say that anyone who defaults on their loan is a scumbag. we arent putting a gun to anyone's head and forcing them to sign the contract. if they dont bother to read the terms of the contract, why should the lender be responsibly for the borrowers stupidity and/or laziness?

 

[sreggie101]

private lenders are scumbags but what else is new tho

easy there man.

i can just as easily say that anyone who defaults on their loan is a scumbag. we arent putting a gun to anyone's head and forcing them to sign the contract. if they dont bother to read the terms of the contract, why should the lender be responsibly for the borrowers stupidity and/or laziness?

this way of doing business is one of the reasons we are in this economic mess in the first place. i don't disagree, people should understand their financial situation and should know their limits. but shouldn't you guys know not to sell a loan to someone who you know can't afford it? the people who bought a home and couldn't afford it are stupid, but the financial institutions whose decisions can have a much bigger impact, shouldn't approve the loan in the first place.

this is irrelevant to the thread tho since this isn't a case of simple defaulting.

 

[mojodmonky1]

^ i know we are going off on a tangent here but...

i didnt agree with the bank bailouts at all. if a lender wants to lend to someone they know cant afford it, they better be ready for the consequences. i know its an oversimplification of the matter, but a private lender should be able to lend their money how they want, as long as no one else (govt, taxpayers, etc...) wont have to bear the burden of responsibility if stuff goes sideways.

 

[ksteezy]

i thought you were married? you'd leave it all to your mother and not your wife?
disregard if not married.

Half goes to my mom and half to my wife.

My wife is well aware that my mother comes before her....if I pass my wife is young and can still move on her on two feet and eventually move on, my mother I'm her only child and she never re-married....gotta make sure I leave her with something, but they are both looked after.

 

[mojodmonky1]

^ makes sense. sounds like youre a good son. thankfully, i have many siblings and dont have to worry bout my parents being taken care of. hell, right before i got married, my pops even told me straight up "now that youre getting married, your wife becomes your #1 priority, even before us".

 

[crcballer55]

It's his mother though, for a loan that would have and could have bettered his life. I would cosign on my child's student loans (if I couldn't afford to send them through school) without hesitation

agreed. if you are a parent and you think its perfectly fine to let your kids swim on their own in a time when education costs are rapidly rising, at a greater rate than incomes...

fine do you.

but if my kid who will obviously have no credit, needs a loan, allowing him to go to a great school, why the **** wouldn't i support my own child and cosign. if my credit makes that much of a difference, you could only be a bad parent by not cosigning. WITH THAT SAID, ima make damn sure my kid doesn't graduate in some bullsht *** major that has damn near 0 chance of getting a job. period.

There are multiple flaws in this line of thinking. While 4 year college costs are rising drastically, community colleges are still VERY affordable. But most people don't want to consider that route because they won't be the "experience". By going to a CC, you can easily get most of the GE classes out of the way without paying several thousand per unit. Secondly, most students in college would rather take out loans instead of take on a part time job to help pay for it so they can "focus on school". Most of us that have been through college know that the are very few people who don't work that actually spend the time focusing on school that we think we do. Instead, it's all about parties and hanging out with friends and finding girls. The irony is that those who actually take on a part time job during school actually have higher GPA's on average and learn better time management.

 

[powerballin]

^^^ All that word to Keenan