Notice To Cosigner Form

When you co-sign a loan, the lender (known as the creditor) must spell out your obligations in a co-signer's notice, which says: You are being asked to guarantee this debt. Think carefully before you do. If the borrower does not pay the debt, you will have to.

The lender is not required to notify you that the loan has become delinquent. It's up to you to ensure the person you cosigned for is going to make the payment on time and in full. If they don't, it's going to damage your credit history and credit scores.

Some lenders will allow cosigners to be removed if the primary borrower has a strong enough credit score (or a high enough income) to support the loan on their own. Get a cosigner release. Some loans will release your obligation as cosigner after the borrower makes a certain number of consecutive on-time payments.

Generally speaking, the only way to get a co-signer removed from a car loan is to refinance the loan.If they won't, you might see if a lender will agree to remove the co-signer after you've made a certain number of on-time payments but before you've paid off the loan.

A Completed Degree. On-Time Payments for Up to 48 Months. No Signs of Financial Difficulty. Satisfy Credit Criteria.

A cosigner doesn't have any legal rights to the car they've cosigned for, so they can't take a vehicle from its owner. Cosigners have the same obligations as the primary borrower if the loan goes into default, but the lender is going to contact the cosigner to make sure the loan gets paid before this point.

Q14(b)-1: Timing of cosigner notice. At what point in the transaction must the cosigner notice be given? A: The cosigner notice must be given to the cosigner before the cosigner becomes obligated on the transaction.