Mortgage Guarantor- Why you should avoid this at all costs!
Please read this important article before you do something stupid!
Choosing to be a mortgage guarantor is a very foolish choice. When you sign the dotted line you are basically signing you money away for nothing. Of course you might not know what a mortgage Guarantor is. So I will tell you what a mortgage guarantor is and why you should avoid it at all cost.
Basically a mortgage guarantor is a third party, most commonly a friend or family member, who guarantees the mortgage company that they will pay the mortgage if the person you’re signing for defaults, or doesn’t pay. This means that if you sign the dotted line, you might find yourself in a financial bind very soon in the future.
Most people who require a mortgage guarantor, are not approved for a loan by themselves. This means the bank will not lend them money because they are scared they wont get it back! If the banks scared, you should be too! Many people unknowingly sign these papers not knowing exactly what they are signing. Even if you close friend or relative approaches you with an offer or asks you to do this, be nice but say no. It’s not worth your money, your credit, or your financial future. You can easily lose your shirt on this one if your not careful!
All that has to happen is the primary debtor miss one payment and legally you can be charged for it! This means that if you were the Guarantor for a family member’s mortgage, you might wake up one morning to find a $1,500 bill in your mailbox!
The best thing I can tell you is don’t put your money on the line for someone else, no matter how much you love, care, or trust them they are still human, and can unintentionally miss a payment, and then you’re screwed.
Blog Archive
