I made a HUGE mistake of cosigning a loan last year for my fiancee to get a car loan. I thought we were getting married, so i didnt see the big deal of it then. However, we are had some major issues recently and have broken off the engagement, and broken up. He has told me he would never put me in the position to have to pay his loan, that he would always pay it, but i'm scared that he might use it against me. He did write a letter last year stating I wasnt responsible for the payments, but is that a legal document? do i have any recourse? can someone tell me where i can find out my rights if i have any?
2006-09-05 13:30:36 · 6 answers · asked by brknarrow23 4 in Business & Finance ➔ Credit
You're up a creek with NO boat, paddle or motor since you co-signed the loan. Since it's not been 2 years, you're stuck. You can try calling the finance company & ask to be removed. They'll most likely tell you too bad so sad, boo friggin hoo, etc though. Even a nice, pretty notarized letter won't get you out of financial responsibility if he defaults on the payments. The finance company will start calling YOU for the payments if he defaults on the loan. If you can wait another year, you can get off the loan papers. Your ex-fiance can also refinance the loan to lower the payments & get a lower APR.
2006-09-05 13:39:33 · answer #1 · answered by Belle 6 · 1⤊ 0⤋
The letter from him is not a legal document. Because you cosigned on the loan, you are responsible for payment if he defaults. Also, if you are not the primary person on the account, you may not learn of the late payments until the loan is actually in default. The only way to remove any liability from yourself is to have him refinance the loan in his name (or his name and another cosigner's name).
2006-09-05 14:50:28 · answer #2 · answered by what the heck? 3 · 0⤊ 0⤋
I agree with the others, your credit will be hurt if he makes a late payment or defaults on the loan.
That piece of paper that he signed means nothing to the loan company (or to a judge if he defaults and they repo and sue). The only paper that matters to them is the original loan documents.
If you are still on good terms with your ex, you might discuss this with him and see if he will re-fi the car in his name only.
You can always try to see what can be worked out with the original loan company, but I doubt they will take you off the loan.
2006-09-05 13:58:49 · answer #3 · answered by echo 7 · 0⤊ 0⤋
If you co-signed you may be in trouble if he doesn't pay... But however if he doesn't pay and you do document all records because you may be able to seize the car from your ex- then just put it up for sale or keep it for yourself... you could also do a resume payments as a selling condition from another buyer..
2006-09-05 13:38:47 · answer #4 · answered by cosmoestyle 2 · 0⤊ 0⤋
No. It is absolutely crazy to cosign a loan if you are not prepared to pay it off if the other person does not.
2006-09-05 13:51:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If for whatever he does not pay you are responsible for it and not only that you will ruin your credit.
Hold on to the letter that you have, but try to get another on that is detailed. And signed and it notarized it's better for you
2006-09-05 13:34:45 · answer #6 · answered by anisarkisyan 3 · 0⤊ 0⤋