help!!co-signer wants out!!! - Posted by Jat

Posted by Ed Copp (OH) on July 14, 2001 at 21:18:30:

Your co-signer can ask the lender for a release of liability. May be available if the equity has built up sufficiently enough to have that make sense (not likely) The cost will be 1% or more if the lender agrees.

Refinance the property using your now vastly improved credit and get a new loan on your credit alone (probably not too likely either).

Pay off or pay down drastically, the loan. You will need a cash injection of some kind to do this. Might be pretty costly, and probably not practical.

It is most likely that your co-signer is out of luck at the present time.

help!!co-signer wants out!!! - Posted by Jat

Posted by Jat on July 14, 2001 at 18:58:22:

We bought a house 7 months ago. We have terrible credit and could not qualify for the FHA loan. A friend qualified for us, 3% down,FHA
@ 8.5% interest for 30 years. We are on the title but not on the loan. We paid all the cost and payments.

Now our friend who signed the loan for us wants to buy another house. As such, wants out of this loan that he has signed for us. What can
we do now to release him from the loan obligations but still keep this house?? We would like to have loan in our own name. But we don’t
have the credit or additional downpayments. Please advise.

Original sale price was: $226,000
Loan amount: $219,000
Interest rate : 8.5%
Term: 30years FHA
Monthly PITI: $2048

Recent sales in same area, same type houses:$250,000

What can we do at this time??