I co-signed on a mortgage loan for a friend who ended up losing their job soon after they bought the house. They were late four times on their payments and I was never notified by the bank or them. Now I’m trying to refinance and my bank is telling me its not possible because of these late payments. Is there anything I can do to fix my credit score immediately? Help please!
Also, she says that two of the late payments were a mistake made by the bank can i dispute this and if so how?
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Mon, May 3, 2010
May 3rd, 2010 at 5:00 am
Per your update….if there are mistakes…then she should try to dispute them…but that still leaves the 2 other late payments. If this "friend" cannot afford the payments, then it’s her obligation to you to sell this house to prevent further damaging your credit rating.
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No……sorry. Cosigning any loan for a friend is a big mistake….Cosigning for a mortgage is a particularly bad mistake…The 4 late mortgage payments will have a big impact on your credit score/rating for at least 2 years. There is nothing you can do in the short term to fix this…only the passing of time will undo the damage.
The problem here is now that this person has 4 late payments on their credit, they are going to have a hard time refinancing to get you off the loan as a cosigner.
If this person is "really" your friend, he/she will find another suitable cosigner for the mortgage and remove your name from it….Otherwise, this is probably only going to get worse for you….They’ll probably have more late payments that will further drag your credit score down.
Being that you are a co-signer on the mortgage, consult with an attorney about any rights that you might have.
May 3rd, 2010 at 5:00 am
this is why you shouldn’t co-sign… =(
You’ll have to start small and work your way up. Pay off a cell phone, or a credit card, and slowly, build up your credit again. Then make a purchase like a car, or TV, and make sure to pay it off. Eventually you’ll have good credit again.
Such a terrible way to ruin it though =(
May 3rd, 2010 at 5:00 am
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com
May 3rd, 2010 at 5:00 am
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May 3rd, 2010 at 5:00 am
Nope, but you have just learned a very valuable lesson. NEVER, EVER co-sign for anyone you are not legally married to. It never turns out well.
In your case, it could get even worse. There is no way to fix it. If your friend defaults on that loan, they will come after you. You are stuck with that loan unless you can get your friend to refinance — their credit is probably worse now. Or you might make your friend send the payment to you. Then you can make sure the payment is always on time.
May 3rd, 2010 at 5:00 am
There is nothing that you can do to fix it immediately. A dispute can take 30-45 days.