my mom asked me to co-sign for a new car for my brother. I did it as a favor for her, and tried to trust him, well , in the year that he has had it he has only made 1 payment, all other my mom has gave me the money because she didn't want it to affect my credit. either way it has already affected it 4 times .anyway, my brother is being very mean and has hid the truck from us, we had told him we were going to trade it in, and he hid it he wont tell us where it is ..and it has no insurance.
I'm planning on reporting it stolen, and my question is:, if it has No insurance and for any reason its damaged...would I still be able to trade it in? if not, and its completely damaged what are my options if the truck is no good anymore, do i still have to pay for it, am the primary buyer so its all my credit being messed up.
Please any advise, i would really appreciate it.
My advice to you "NEVER Co- sign for NO ONE" not even Family
and just to let you know, he is me Older Broth
2006-10-06 05:24:19 · 29 answers · asked by melinda 1 in Family & Relationships ➔ Other - Family & Relationships
No matter what happened to the truck, you are liable to pay for it. Even if it doesnt run and is only scrap metal now, the balance owing is the balance owing.
Your mother shouldnt have pressured you and you should have been wiser and said no.
Call it in stolen ASAP and when your brother goes to jail don't bail him out!!! let your mum do it!!
2006-10-06 05:27:03 · answer #1 · answered by BlondeBarbie 4 · 2⤊ 1⤋
I work in mortgages now and I was a former police officer - I can answer this question for you. Every payment he misses goes on your credit report. Secondly, if the car is registered to him, which it probably is, you can not report it stolen. He can trade the car in, but since its probably not worth what he/you owe on it, you will have an equity shortfall and have to buy a more expensive automobile so the dealer can make up the difference. If it is involved in an accident, you will not be responsible for the accident but it will lessen the value of your potential trade-in.
As far as your credit report, it's there for seven years, although most lender do not worry about anything over two years old.
You're advice is good advice. Do not co-sign for anyone. I have come across several people that have co-signed and their credit suffered. The sooner you can get out of this mess - the better. This may not be what you want to hear but it might be better to purchase him a cheap $300-$500 car and take possession of the other vehicle. Then, you will have it and you may try to sell it or trade it in. I'm sure it's costing you at least $300 a month to let him keep it.
2006-10-06 05:42:29 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Rather than just report the car stolen, you need to make sure and tell the cops that it is your brother that is refusing to return the car to you.
Most of the time if the finance company of an auto does not have proof of you retaining full coverage insurance, they will take out coverage and add the premium costs onto the amount you owe to them. Now, whether you can benefit from the insurance that the finance company purchases, I don't know. Most of the time it is just a policy that they have to insure they are not out more money if the loan is defaulted.
Regardless of whether the truck is ever recovered, or if it is damaged, etc. you will still be liable to repay the loan. If you do not continue the pay the loan as agreed you will face a repossession as well as a damaged credit report. Also, depending on which state you live in, your wages can be garnished to repay the loan.
2006-10-06 05:30:00 · answer #3 · answered by MommyWommy 2 · 2⤊ 0⤋
I think you should discuss this with your mom. She got you into this situation and should help you get out because you are going to be liable for paying the loan off. Your brother is a complete idiot, to use you and your mom. As far as calling in that it is stolen, that may make things worse. More and likely he has it hidden at a friend's house. I would search around for the truck, it is somewhere. Hopefully, it is not damaged because that would take the value of the truck down and won't help pay off the loan. I guess you didn't have an extra key made to take the truck away from him when you find it. Then you could have locked it up in a storage unit or a garage somewhere. You might be able to call the loan company and work out something with them. Sometimes, car lots and loan companys will have an extra key in case they have to repossess for non-payment. If they repossess the truck, they will sell it at an auction and you will still have to pay the remainder of the loan. I would just sell it for as much as I could to pay the loan off. I have also heard people finding someone to take over payments and the loan companys agreeing.
Good luck and tell your older brother that he is a jerk for treating you this way.
2006-10-06 06:03:38 · answer #4 · answered by Dottie 6 · 1⤊ 0⤋
If it is damaged you might still be able to trade it in. You won't get as much. You can make more by selling it yourself, but that is more trouble. Get an estimate from Car Max or a place like that so you know how much you can get for it, if the dealer won't give that much to you than sell it to Car Max. If it is so damaged it is a total loss, then you still have to make payments on it. Sorry that you learned the hard way not to co-sign. The only time one should co-sign is if they are able and willing to make the payments.
2006-10-06 05:36:33 · answer #5 · answered by shepherd 5 · 2⤊ 0⤋
You are going to need to take him to court. Since he is the one driving it he is financially responsible for it, even though it's your credit on the line and you are responsible for that. In the long run it is your brother who is going to have to deal with the money aspect of the car.
As far as how to get it back to trade it in? I would contact a lawyer. What you have here is a case where the lawyer will NOT collect any fees from you until the case is settled in your favor. That is the law. If it is damaged, then your brother will ultimately be responsible for the cost of the truck.
I'm very sorry that you had to learn the lesson the hard way and I hope your credit bounces back fast. And that this issue is resolved ASAP.
Get a lawyer. That's the best advice anyone can give you,
2006-10-06 05:29:21 · answer #6 · answered by FaerieWhings 7 · 1⤊ 1⤋
I don't know what your options are because I have never been in that situation, go ahead and report it stolen if you are the primary buyer then technically the car is yours right? If it is damaged after you find it then sue your brother. Take him to court and make him pay for it. I don't know if you can do that or not or if you will even win. Some laywers will give free consultations, talk to one. Your brother is a piece of work, and although he is family you should teach him a lesson.
2006-10-06 05:33:03 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Co-signing is always hard.
As for your questions. You could still trade it in if it were damaged but you would lose a lot of money on the trade in. since the loan is so recent. Value on a vehicle goes down the moment you take it off the lot. Most likely you will have to pay out of pocket. If it is completely damaged you still have to pay for it.
I would find it before anything happens to it and probably get rid of it asap.
2006-10-06 05:29:16 · answer #8 · answered by hoddin 2 · 1⤊ 0⤋
You are so screwed. Your mother did not want to co-sign for him, that should have set off bells and whistles. Regardless of the truck's condition, you are still responsible for the payments. Your best hope is to keep up the payments to protect your credit and sue your brother in court. You will look like the bad guy to your family, but who took advantage of whom? Get a court order to get possession so that you can sell it. Make sure that the court also specifies that he owes the difference between what it can sell vs. the loan balance plus the amounts that he owes you for the missed payments.
2006-10-06 05:34:19 · answer #9 · answered by sloop_sailor 5 · 1⤊ 1⤋
Get it back and sell it outright, you may have to write a check for the balance to pay it off since it has been only a year since purchase it is upside down, meaning more is owed on the loan than the vehicle is worth. If you sell it outright you will be closer to the owed amount than if you trade in. Either way you will want to get it off of your credit as soon as possible.
2006-10-06 05:29:47 · answer #10 · answered by the_news_junky 2 · 1⤊ 0⤋