In order for a name to be removed from a cosigned loan, all parties would have to be in agreement and would have to speak directly with the loan company about rewriting the contract. Most lenders will not rewrite contracts and a refinancing of the loan is a more likely option, according to Experian.Continue Reading
Since it is nearly impossible to have a name removed from a loan, it is important to find other options for removing a name as a cosigner. Refinancing the loan is one of the best ways to have a name removed, but most borrowers who require a cosigner will not qualify for a refinanced loan. If the loan is on something like a house or car, the item can be sold and the loan can be paid off.
Money Management International states that for people who have cosigned on a loan that is not being paid properly, it is sometimes easier to make the payments themselves. While it may not be feasible to add an extra expense, people can be sure that they are not subjected to late fees and their credit report is not damaged by making the payment on the loan they cosigned for. Cosigners can then try to collect the money from the borrower on their own.Learn more about Personal Loans