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The OP is from 2008, so I assume their issue is long since resolved
Depends entirely on what was signed and how it was worded.
In some states and some leases, the lease terminates at the end, in which case the cosigner is only responsible if they sign a new lease.
In other states and other leases, the lease rolls month to month or automatically renews, in which case the cosigner would still be responsible. If the tenants are now month to month with no new lease, I would assume the original lease has wording to the effect that all original terms remain in place. That would include the cosigner.
We eliminate this confusion in our cosigner agreement by stating specifically that the cosigner is also cosigning for any extensions of the original lease. (The wording in our lease makes more sense than that, but you get the idea).
Carlitos did it again - so easy to do! But of course you're right. A term lease which rolls over to a month to month does so under the same terms and conditions as the original lease. Those terms can then be changed by the LL with 30 days written notice. If the original cosigner wants to be released from his/her responsibility then this would require a lease amendment. I think this would be something which would have to be agreed to between the LL and the cosigner only, without the consent of the primary leaseholder - but am not sure.
I like to consider myself the resident expert at commenting on old and irrelevant threads! It only happens on this forum, I swear! Maybe the date and time should be displayed more prominently.
There would have to be a new lease/rental agreement without the co-signer on it.
A lease amendment is simpler and is legal.
Quote:
Originally Posted by CarlitosBala
I like to consider myself the resident expert at commenting on old and irrelevant threads! It only happens on this forum, I swear! Maybe the date and time should be displayed more prominently.
And I very much appreciate your status but enjoy a chuckle about it too!!!! I find the best way to avoid it is (a) wipe all the gunk off my glasses and (b) use the command and + keys to enlarge the screen print. It doesn't always work but helps ...
While understanding this is an ancient thread, it never is mentioned that this could effect a co-signer's DTI if they need to obtain financing themselves.
And I very much appreciate your status but enjoy a chuckle about it too!!!! I find the best way to avoid it is (a) wipe all the gunk off my glasses and (b) use the command and + keys to enlarge the screen print. It doesn't always work but helps ...
Why would a lease amendment be simpler? You are creating a new contract with different parties. You need new paperwork either way. Much simpler to have a simple new contract, rather than a convoluted bunch of paperwork changing the contract this way and that removing parties to the original contract, etc.
Also, you can't change a contract without all parties' knowledge and approval, as you earlier suggested - that the co-signer and landlord could remove the co-signer without the other contract holder's knowledge or approval.
Why would a lease amendment be simpler? You are creating a new contract with different parties. You need new paperwork either way. Much simpler to have a simple new contract, rather than a convoluted bunch of paperwork changing the contract this way and that removing parties to the original contract, etc.
Also, you can't change a contract without all parties' knowledge and approval, as you earlier suggested - that the co-signer and landlord could remove the co-signer without the other contract holder's knowledge or approval.
Reading up on lease amendments is very simple - as lease amendments are, and save having to make up an entirely new lease.
I made it clear that I was unsure of the technicalities involved in removing a cosigner.
Late payments don't affect the cosigner's credit up until the point that some sort of legal paperwork is filed. Cosigner's name will be on all notices and if the rent is not paid then, cosigner's name will be on the eviction paperwork. At that point, co-signer's credit is very badly affected.
If anyone here has co-signed, you get that rent paid as soon as you are notified that it is late. I suggest that once the rent has been late, that you verify every month whether or not it has been paid, so that you don't receive a pay or quit (first step in the eviction process)
The cosigner is liable for all rent, all damages, all liability, until after the tenant has moved out and the keys have been returned to the landlord and all damage is repaired and paid for.
Perhaps the landlord will sign an addendum that the cosigner is no longer responsible at the time the lease is renewed, but I would not. I've got 2 sources to pay me, I'm not giving one of them up. Sorry, cosigner.
My cosigner agreement says that if the cosigner wants off the agreement, they give me a notice, in writing, and I give the tenant their 30 day notice to vacate. Once the tenant is out and all damage is paid for, then the cosigner is off the hook.
Don't cosign unless you are willing to adopt all the possible expense of your friend or relative. It is not a matter of how nice your friend is; it is a matter of whether or not they earn enough income to pay their rent, and they would not need a cosigner if they had a good income source.
Late payments don't affect the cosigner's credit up until the point that some sort of legal paperwork is filed. Cosigner's name will be on all notices and if the rent is not paid then, cosigner's name will be on the eviction paperwork. At that point, co-signer's credit is very badly affected.
How can you post information that is so blatantly incorrect, especially when I've personally corrected you about this before?
Let me state this again, to correct the erroneous points. Filing a complaint against someone will NOT affect their credit. Winning an eviction case against someone will NOT affect their credit. ONLY monetary judgments get reported to the credit bureaus.
Period.
Quote:
My cosigner agreement says that if the cosigner wants off the agreement, they give me a notice, in writing, and I give the tenant their 30 day notice to vacate.
How can you post information that is so blatantly incorrect, especially when I've personally corrected you about this before?
Let me state this again, to correct the erroneous points. Filing a complaint against someone will NOT affect their credit. Winning an eviction case against someone will NOT affect their credit. ONLY monetary judgments get reported to the credit bureaus.
Period.
And that is almost certainly not enforceable.
True, it wouldn't affect their credit, but it would be listed on a background check / public record, that an illegal detainer was received against them, which could impact their own ability to rent in the future. So it may not affect their credit, but it could affect their life.
Also, not directed at your post, just a general comment. Cosigners have to be CC'd on any official notices. You can't just send the notice to the house with both names on it. If the cosigner lives elsewhere, they have to be sent a copy as well. So an eviction should never be a surprise for the cosigner.
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