You have to remember that when you co-sign on ANY LOAN, you are in a contract and agree to accept legal and financial responsibility if the main account holder defaults on the loan. You not only run the risk of ruining your credit if the original signer misses one payment or two but the lender will most definitely go after you if the signer defaults on the loan. Lenders know that you have more assets and are more financially responsible because the original applicant needed your to qualify for the loan. Lenders could garnish your wages and make you pay for legal fees on top of all the late fees the account may have already accumulated. In the case of a mortgage loan the consequences are even greater.
More information at:
sccrealestateuncensored.com/2008/cosigning-leads-to-fiancial-trouble/
micasamidinero.com/2008/coaplicante-trae-problemas-financieros/
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