“Co-Signing for anyone is not an Easy Decision”
Hi Joe,
My dad is very supportive and will absolutely co-sign. He
asked that I take out insurance, in case something happens to me before
him and he just wants to check in with his lawyer to make sure there is
nothing else he should do.
I
spend a lot of time counseling clients as to the risks associated with
co-signing a mortgage for anyone and the risks can be many. Sure,
parents and other family members often want to help but the risks need
to be understood. In many cases it all works out but I have seen things
not work out very well.
It
is extremely important to understand that if the person being helped
doesn’t pay, the co-signer is financially responsible for the debt. I
always recommend that if a co-signer agrees to participate, that as soon
as possible a refinance be done to take the co-signer off the
obligation.
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