What happens if your co-signer dies?

Answer 1

Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer, who may be called primary signer). No difference.

So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also.

If primary dies, the estate of the primary must handle all his debts (sell car, use assets to pay debts, etc) or you remain responsible.

Answer 2

The legal obligation falls on the estate if the estate is still in probate. If the estate has already been settled and the lien holder failed to submit a claim on the estate, the debt rests on the initial borrower.

This is all contingent on the possibility that default occurred soon after the death of the co-signer.

Another View: It appears that the first contributor has answered assuming that the loan has gone to default and the co-signor's estate is being held responsible for its payment.

On the other hand - if you are still current in your obligation, simply notify your lender of the co-signers death.

It is possible that they may simply withdraw the requirement for a co-signor OR they have the option of requiring that you furnish another co-signer or be at risk of having the loan called as due (whatever the loan contract calls for).

Answer 3

Probably not - especially if you've been living there long enough to have established your own credit history with your landlord.

Of course, if it was your co-signer who had been paying most of your rent, and you are unable to do so on your own, then there is a good possibility that unless you get another co-signer that they may evict you as a bad payment risk.