is it posible to step out of a loan?

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Me and my father purchased a home a few months ago. I was the cosigner to back his credit.We came from Cuba 3 years ago only but i took more care on building my credit than him.But recently i pulled my credit online and it did not show any negative or adverse information,my debt to income ratio was tight.The thing is i already have a bunch of stuff on my name including a 07 toyota,and im getting married next year and my fiance is a fulltime student and eventually i will need to buy a car for her,furniture and in a not so far future my own house and;having that mortgage debt together with my dad might overload my credit,and keep from getting future loans.My question is:is there any way that one of the cosigners can step out of the loan.Can one of them put in a document that he will asume the whole responsability releasing the other one?

2 Comments
  1. Reply
    acermill
    January 30, 2011 at 7:47 am

    Sorry to say that your kind deed to your father cannot be undone without refinancing the mortgage entirely in his name. Lenders will not remove any signer to a loan without a total refinance. To get your dad on his own mortgage, he’s going to have to qualify on his own, without your credit or signature.

  2. Reply
    Landlord
    January 30, 2011 at 8:27 am

    He has to apply for an entire new loan. Since you just received this loan, it may be costly to pay it off with a new loan. You need to ask, unless you can read the document yourself, if there is a prepayment penalty.

    The other big problem is that if he did not qualify for a loan by himself a few months ago it is unlikely that he would qualify now.

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