Co-signers rights

[Anonymous]

Hi
I Under the TILA they are required to send monthly statements to the borrower. I would like to know if mortgage lenders are required to send monthly statements to the co-sign as well.

Thanks

[JVille]

No, some do (rare) most don’t.

[Anonymous]

Is that legal?

[JVille]

Yes, They send the stmts to the Primary Borrower with the address on file. There is nothing to say you can’t gain regular access online.

[JVille]

You know many lenders have different abilities thru Technology. While multiple stmts to different borrowers is not normal it doesn’t cost anything to ask.
As a Co-Borrower you are wise to be concerned. In my 30 yrs of lending and underwriting I can’t tell you how many co-signers got completely screwed. Word of advice is to watch it monthly and Never let the acct be more than 25 days late! At 30 days past due it WILL begin to destroy your credit. Better yet you make the pmt and have the borrower pay you. Being a co-Signer is a uncomfortable place to be. The lender won’t usually reach out to you until the loan is very delinquent. Enough said, watch it closely and establish online access.

[Anonymous]

Thanks

[JVille]

My comments were not intended to scare you. But rather to watch this situation closely and not depend on the Primary Borrower to be concerned about your credit rating and just one late payment does lasting damage.... remember if you are ever in a position that you need to make a payment, to include the late fee that is also due or that payment will still be considered past due for purposes of what is reported on your credit report. Just monitor the acct closely! Good luck

[Anonymous]

Yup thanks for the advice.