Sentences with phrase «primary defaults on the loan»
Not exact matches
Accordingly, cosigners are treated by lenders and servicers the same as the primary borrower, and can even be sued if the borrower defaults on the loan.
https://www.valuepenguin.com/
Cosigner A cosigner on a loan is a coborrower and is obligated to repay the debt if the primary borrower defaults on the debt.
Default on these loans is the primary method by which the government acquires stocks of agricultural commodities.
The primary risk for default on this type of loan is a lien being placed against your residence and being foreclosed upon as a result.
The result can be disastrous because lenders fully expect the co-signer to pay the full balance on the loan if the primary borrower defaults.
The primary being the low risk of an A paper borrower in defaulting on the loan.
If they become delinquent or go into default, it's up to you to fulfill the debt and take over their payments, effectively making you, the cosigner, the primary borrower on a loan that wasn't even yours to begin with.