Sentences with phrase «sued if the borrower defaults»

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.

Not exact matches

Jeffrey Naimon, an attorney at BuckleySandler, said banks are punished enough if a loan defaults because the ability - to - repay rule allows borrowers to sue a lender for alleged underwriting mistakes.

For this reason, it's important that any potential cosigner is aware that if the borrower stops making payments, the default will go onto the cosigner's credit report and they can even be sued personally for the debt.

If the borrower goes into default, and you can't pay, not only will your credit rating be negatively affected, your become vulnerable to being sued by the creditor.