CanI be removed as a co-signer on a mortgage after a year?
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CanI be removed as a co-signer on a mortgage after a year?
My father wants to lower the mortgage payment and asked me to co-sign. A realtor told me that the only way to lower the payment was to add me as a co-signer. She also stated that I can be removed after a year without the payment increasing. Is it true? And how long will I have to wait to purchase a house as a first owner?
Asked on September 27, 2011 under Real Estate Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Hopefully you have not already signed the loan as a co-signer for your father in that once someone co-signs a loan he or she is not remove from the loan unless the loan is retired (refinanced or paid off). The reason for this is that when a lender makes a loan, it is based upon the income of the baoorower and co-signers which affects the ability of the loan to be repaid.
I have never see a lender voluntarily remove a co-signer from a loan as long as the loan that the person who co-signed for still remains. The only way to be sure you are to be removed from a loan after you co-sign it is for you to get a writen agreement regarding this signed by the lender. I doubt that will happen.
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