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Forum / Leasing Issues / Cosigner wants to back out of lease.
I have a lease signed by the tenant and cosigner. The lease is not effective until July 1. They are not moving in to the property until that date as well. The deposit has not been paid at this time either. The cosigner wants out of the lease now and does not want to be responsible for the tenant should they default. The tenant claims that since the lease has been signed, none of the parties can back out. This tenant must have a cosigner, as their employment and credit history is not all that great. A couple questions: Am I obligated to release the cosigner from the lease since the deposit hasn't been paid and the lease isn't effective till they move in (July 1st)? Can I, if I choose, release the cosigner, and thus void the tenants agreement (being that this situation itself just seems like it won't work out in the long run since the cosigner wants out anyway)?
Dan A, NM on Sunday, May 14, 2017
RE: Cosigner wants to back out of lease.
Once the lease is signed, it is legally binding. Once the cosigner sign the lease it is up to the creditor/landlord to allow the cosigner off. They can choose not to renew when the term is up though.
Posted by J D, CA on Wednesday, May 17, 2017
RE: Cosigner wants to back out of lease.
I missed this. What did you end up doing?
Posted by Lisette A, TX on Monday, July 3, 2017
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