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    Maneet Anand

    By being a cosigner for someone's bank loan in California, you have entered an agreement to take responsibility for the primary borrower (who otherwise may not be credit worthy to get such a loan by himself), by agreeing to pay the loan on behalf of him in case he fails to do so.

    Hence, you have facilitated a loan which may have been out of reach of the borrower by being a cosigner for the loan, which means the bank holds you as guarantor here as you are the reason loan was disbursed in the first place, giving you no option to exit. The bank has placed you on the hook of the debt here, and there's little incentive for them to take you off the note unless there's evidence that your name was added fraudulently.

    However, there are certain ways you can convince the borrower to let you out-

    • By Refinancing the Loan- You can have the borrower refinance the existing loan with revised terms and conditions, exiting the loan as a cosigner. The borrower may be able to do this with a new consignor or without a consignor altogether.
    • By Paying Off the Loan in Full- The easiest and the most practical way to exit the loan as a consignor is by having the borrower pay off the loan in full, resulting in completion of loan for both of you.
    • Get the primary borrower to improve his credit score if you wish to be removed. Though, there's a slim chance that even then the bank will let you out, but there is a slight possibility here. If the primary borrower manages to be self sufficient by working on his credit score, then you may be able to get the terms of loan revised, making an exit.
    • If there's an option to get released- Some loans include provisions for co-signer release after a specific period of time. However, it may not happen automatically, you have to apply for removal as your loan agreement dictates. If you delay, and if the primary borrower misses a payment in the meantime, you may be out of luck.

    Considering all of the possibilities above, I feel your best option is to have the borrower pay off the loan as fast as possible to avoid the risk that the primary borrower will default.

    Hope that helps!

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