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Erik Was Deceived by a Family Member Into Cosigning For a Mortgage Loan and Now it is Hurting His Credit


“Dear Steve,

A family member of mine deceived me into cosigning a mortgage loan on the condition I would become the sole owner after a year when they found another place to live.

It’s been 3 years and that hasn’t happened. What has happened is several (over 15) late payments without my knowing and a huge hit on my credit report.

How can I get out of this and show lenders that I had nothing to do with the late payments? I found out about this after being denied a loan as well as an apartment credit check.


Dear Erik,

And that’s why I don’t cosign loans. A lender requires a cosigner when the original person applying has such bad credit or no credit that they can’t get the loan. The cosigner shares all the liability of the loan without any of the benefits of the item being financed.

If the original borrower fails to pay then the lender will turn to the cosigner to resume payments or pay the total amount owed on the loan. If the borrower fails to make payments then it will hurt the credit report of the cosigner since the cosigner is also responsible for the loan.

You got hoodwinked or snookered or whatever you want to call it. As the cosigner you are fully responsible for the loan performance and it will be linked to your credit report. The only way to get out from under this mess is if the original borrower refinances the loan and gets you off it completely.

Until then, it is what it is.

Oh yes, repeat after me, “Never cosign a loan.”


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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Bowtrol IBS

    Thanks for this article, I do like it, keep up your good work, looking forward to your new posts and HAPPY NEW YEAR!!!

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