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 photo credit: nirbhao
In the old days we used to be a little freer with our credit. We could co-sign for a friends car or a family members house. Most of the times it would work out just fine, but these days the risk may be too much to take on. A good credit score is much more important these days, as lenders are not lending to just anyone anymore. Due to our recession, declining housing market and credit crisis, keeping a hold of what you have is increasingly important.
Remember, when you enter into a co-sign situation, you are responsible for all things surrounding the purchase, such as HOA payments, liens against assets, mortgage payments, car payments, insurance, and of course the dreaded default on the loan. We all know that defaulting results in foreclosures and repossessions, and of course it doesnt just go on your friends or family members credit, it goes on your credit report as well.
photo credit: madmolecule
We have all been told since we were young that we should pay attention to what we sign. It was never truer than with the co-sign arrangement. Make sure you know exactly what you are responsible and liable for before you sign such a binding contract. Take into account your friends and family members credit history and financial behaviors to make sure you are helping someone who will make good on their promise to you that they will do everything in their power to keep the contract in good standing.
Read the full article from Inman News
Posted on July 23, 2010 12:28:01 by  IPTV.Boyz
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