If a loan is co-signed and the borrower defaults, the lender has the right to sue the co-signer or try to seize his or her assets just as if he or she were the borrower.

Question

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When a loan is co-signed, the co-signer is equally responsible for repaying the loan in the event that the borrower defaults. This means that the lender can take legal action against the co-signer, just as they would against the borrower, including attempting to seize assets in order to recoup the debt.

If a Loan Is Co-Signed and the Borrower Defaults, the Lender