Recommended Free Tools
Co-signing a mortgage can make you responsible for payments when the borrower falls behind, and missed payments may damage your credit—even if you do not own the home. In an October 2, 2026 episode of The Ramsey Show, a caller said her in-laws had stopped paying consistently on a mortgage she and her husband co-signed, and that the debt was affecting her husband’s credit. The episode offers a vivid example of the risk; the legal and financial consequences in any individual case depend on the loan documents, property title, lender and applicable law.
What the Ramsey Show caller said happened
In the episode “Stop Settling for a Life You Hate,” a caller described her and her husband as rebuilding financially after co-signing their in-laws’ mortgage. She said the in-laws had been unable to refinance them off the loan, had not made payments consistently, and that her husband received a wage-garnishment notice following earlier nonpayment. She also said a later credit check showed two additional missed payments. These are the caller’s statements as recorded in a third-party transcript, not independently verified loan or court records. Read the episode transcript.
The hosts urged the couple to recognize what they could control: discuss how the situation was affecting their relationship, plan for the possibility they might have to pay, and stop relying on the in-laws to change. The transcript does not identify the state, loan balance or terms, property title, or legal basis for the reported garnishment. Those details matter; the caller’s account cannot establish what would happen to another co-signer.
What co-signing a mortgage makes you responsible for
A co-signer agrees to take responsibility for another person’s debt if that person does not pay. The Federal Trade Commission (FTC) warns that a creditor may pursue the co-signer and that the debt or default can affect the co-signer’s credit record and ability to obtain other credit. FTC guidance on co-signing.
For a mortgage, the Consumer Financial Protection Bureau (CFPB) describes a co-signer or co-borrower as someone who agrees to full responsibility for repayment, including missed payments and potentially the full loan. That obligation is not limited to an informal promise to help out: the terms in the signed loan documents determine what the lender can require. CFPB guidance on mortgage co-signers.
Loan liability and home ownership are separate
Being liable for a mortgage does not, by itself, establish that you own the property. Check both the loan or note documents, which show who is responsible for the debt, and the property title, which shows ownership interests. Some mortgage programs allow a co-signer who is not on title and has no ownership interest. If the documents are unclear, have them reviewed by a qualified professional in the relevant jurisdiction.
Why a borrower might need a co-signer
Dr. John Delony’s warning in the episode was blunt: “And for anybody listening gosh just remember co-signing guys it is only there because the bank knows that person cannot pay.” That is a forceful caution, not a complete description of every co-signing arrangement. The CFPB says a co-signer can add income and credit history to help a primary borrower qualify or get better loan terms. The FTC also lists limited credit history, poor credit, or lack of steady income as reasons someone may need a co-signer. A borrower may be able to make monthly payments and still need a co-signer under a lender’s qualification standards. CFPB explanation of co-signers.
What to do if you already co-signed and payments are late
Act on the account facts rather than relying only on what the borrower tells you. Keep copies of communications and records of what you learn, and address the problem with the lender or servicer promptly.
Rank #3
- Bill Payment Planner Stickers include 54 mini vinyl icons sized 1/2” for Mortgage, Water, Gas, Electric, Phone, Trash, and Internet bills. Writable, waterproof, smudge-proof, durable, and perfect for functional financial planning, bullet journaling, and productivity layouts.
- [Material] - High Density Ink on Matte Vinyl Sticker Paper - Rip Proof, Weather Proof, Re-positionable.
- [Buttery Soft & Durable Quality] – Printed with high-density pigmented ink on buttery soft vinyl, these rip-resistant, waterproof, smudge-proof, and fade-resistant stickers are perfect for consistent financial planning throughout the year.
- [Absorbs Any Ink Instantly] – Easily write bill amounts, due dates, or payment confirmations directly on your planner pages without smudging. The ink absorbs instantly for sharp, clean entries.
- [Small Size, Big Functionality] – Each 1/2” mini sticker fits neatly into planner grids while still leaving room for budget notes and adjustments. Ideal for adults, students, and small business financial organization.
- Read the loan documents. Confirm your role, obligations, and the amount covered. Where applicable, the FTC says the Notice to Cosigner explains potential liability; some real-estate mortgage loans may not require that notice.
- Ask the lender or servicer for visibility. Request account access or monthly statements, and ask whether it can send you written notice of missed payments or changes to the loan. The FTC recommends asking about notice arrangements.
- Check your credit reports. Look for late payments or other account information connected to the loan. If you find an error, contact the lender or servicer and the credit bureau to dispute it; keep records of the dispute and any response.
- Discuss the account with the borrower. Get a clear account of payment status and plans, but verify important details with the servicer when you can. A promise to catch up does not change your contractual exposure.
- Ask what an exit would require. Contact the lender about a co-signer release, refinance, or other available option. The FTC says release requires agreement from both the lender and the main borrower; asking to be removed does not automatically end the obligation.
- Get advice for legal consequences. For questions about state law, title, foreclosure, collection, or wage garnishment, have the actual documents reviewed by a qualified professional in the relevant jurisdiction. The reported garnishment in the episode does not establish the rules or outcome in another case.
Can you get your name off a co-signed mortgage?
Not simply by asking the lender to erase your name. The FTC says both the lender and the primary borrower must agree to release a co-signer. Ask the lender what its release requirements are and whether refinancing or another lender-approved change is an option. The answer is specific to the loan and lender; the episode does not establish what options were available to the caller’s family.
Until the lender confirms in writing that your obligation has ended, do not assume that a private agreement with the borrower—or the fact that you do not live in or own the home—removes your liability. A qualified professional can assess the documents and local-law questions that general guidance cannot resolve.
Rank #4
- 90+ MINI ICON STICKERS: Includes over 90 small, easy-to-use stickers featuring car payment, mortgage/rent, phone bill, WiFi, energy, water, trash, and recycling.
- PERFECT FOR PLANNERS & CALENDARS: Designed to fit monthly planners, desk calendars, wall calendars, agenda books, and bullet journals without overcrowding your layout.
- STAY ORGANIZED & NEVER MISS A BILL: Easily track your monthly expenses with clear, colorful payment reminder icons for car, rent, utilities, phone, and more.
- PERFECT FOR PLANNERS & JOURNALS: Sized between 0.3”–0.5”, these compact stickers fit perfectly in planners, calendars, bullet journals, and budgeting spreads.
- SHEET DIMENSIONS: 4.2“ x 7.5”
How to weigh the risk before co-signing
Before signing, make the decision as if you might have to cover the obligation yourself. Consider the loan’s contractual terms and balance, whether you would have an ownership interest, how you would learn about missed payments, what the lender would require to release you, and how repayment could affect your household budget and ability to borrow. Co-signing is a financial commitment, not just a way to lend someone your credit history.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errors
