questions & answers

Question: In 2001 I co-signed with my daughter to purchase a single-wide mobile home. She lived in the mobile home for 13yrs. It's financed with XXXX located in Tennessee, and there's still a balance of $16,000. My daughter had to move out due to her family increasing and the need for more room. I'm a retired senior citizen and do not have the money to pay for it. What can I do to keep it from being on my credit report?

Answer: A lender has the right to notify Credit Reporting Agencies if you and your daughter default on your loan.  You and your daughter can communicate with the lender, perhaps initially by phone, to discuss your options other than default, for example selling the mobile home (to apply sale proceeds to your debt), the lender’s willingness to lower the total amount owed, and/or a payment plan.  Lenders often work with debtors to arrange new payment arrangements, rather than lose your repayment altogether. Because your daughter is the primary lender, she must participate in these efforts or risk her credit record.