signed for car for my daughter and she's not making payment and i have been down-sized atwork where i can't make them any more either- so what comes next????
2006-11-15 01:32:25 · 18 answers · asked by ella f 1 in Cars & Transportation ➔ Buying & Selling
You are just as liable for the payments as she is since you co-signed for her. You need to make some arrangements with your lender. They don't want the car back and would most likely be willing to work out something with you.
2006-11-15 01:39:39 · answer #1 · answered by ...mr2fister... 7 · 0⤊ 0⤋
You have the opportuntity to make the paynment good, or have the car re-posessed, -- in which case the "bad credit" rating goes on your record too!
The alternatitive to "bad credit" is to pay the payment(s) up to "current" and then sell the car and pay off credit company. Unfortunately the car is probably worth less on the "market" than the amount you can get for it, -- so you are going to loose more than just the "back payments" owed on the car!!
Maybe you can find somebody that will fgive a small amount on "equiuty" and take over the payments (you did not say how long your daughter has had the car)! BUT be careful here, -- check out with the loan company, and see if the "note" is "transferrable", - since some will still come after you, - if the other party misses payments too! Better if they can get re-financed, -- if it can't be transferred!! You already have experience with "co-sign" notes, - so don't get into another!
2006-11-15 01:48:01 · answer #2 · answered by guess78624 6 · 0⤊ 0⤋
You have to get your name off the note. Unfortunately, this isn't easy. Short of selling the car, refinancing the note is the only way to get out from under the financial obligations you've taken on as co-signer. Having your daughter refinance the car isn't a very realistic option if she didn't qualify on her own when she bought the car and has since been late on payments, but a lender that deals with problem credits might be willing to refinance the car without your signature.
The problem with co-signing is that if she's late on the payments, then you're late on the payments. The payment history shows up on your credit report, too. You may be able to log on to the lender's Web site to track the loan payments online to monitor how she's making the payments each month.
Since a co-signer isn't always named on the title, you'll want to review the title document. Even if you're not on the title, if she totals the car and doesn't carry insurance, you're still stuck with the loan payments. It's also typical for a car loan to require insurance during the loan term, so even if she's not violating the law by not carrying insurance (unlikely), she is likely to be in technical default of the loan agreement.
You don't want late payments, or worse yet, a repossession, on your credit report. Don't ignore your responsibilities as co-signer. The FTC Facts for Consumers guide, "Cosigning a Loan," has additional information on this topic.
2006-11-15 01:45:04 · answer #3 · answered by kidd 4 · 1⤊ 0⤋
When you co-sign for someone they get better financing, because a co-signor is agreeing to pay if the primary buyer does not. That means your name is on the registration and the title, and that is a huge problem for you if you cannot afford to get the payments caught up. Another thing to remember is that the poor payment history is showing up on your credit report as well. This makes lenders think you can't afford your current bills and will not lend to you until you have rectified the problem.
If you let the car go into repo then it is going to go to auction, and they are not going to get much money for it. The difference is going to be placed in a law suit for the purpose of getting a judge to issue a judgement against both signor and co-signor. Now if it is not a big loan then this will probably not happen, but if it is negative more than say $3000 then it will go towards a judgement.
I would recommend doing whatever you can to stop that from happening. Just learn not to do this again, co sign for no one.
2006-11-15 02:52:57 · answer #4 · answered by I am Jared From Subway 3 · 0⤊ 0⤋
You have the car reposessed! Your credit will be ruined since you co-signed. My parents did this for my sister...and my father ended up paying for this car for her...she destroyed it and then told my father he could keep HIS car!! Needless to say..my father and sister are NOT on speaking terms anymore. I'd also look into suing you daughter in small claims court...I know she's family...but she has signed a LEGAL document PROMISING to pay for this..and you've been doing it...sue her for what YOU'RE OUT plus whatever damage is done to your credit...
TOUGH LOVE!! If it weren't for you...she wouldn't have gotten this car~ the bank would have taken it from her a long time ago...be tough and don't co-sign for her EVER again!!
This gets me soo mad...she has a million and one excuses why she can't pay right?! ANd you've picked up the pieces ...AGAIN?! Stop!! Cause she's driving around in this and NOT caring that you're paying!!!! THIS REMINDS ME SOOOO MUCH OF MY SISTER!!! Taking advantage of a parent or another family member is WRONG!!! It really pisses me off when that happens!!! GET MAD!!! SCREAM AT HER...SHE'S NOT LEARNING BY YOU PAYING!!! Please...tell her she either pays for the car..or you'll have it repoed~~
2006-11-15 01:45:50 · answer #5 · answered by just me 4 · 0⤊ 0⤋
After more than 90 days of non-payment, the car will be subject to reposession. After the vehicle is reposessed, the finance company will then take action to SUE YOU for the balance due on the loan.
2006-11-15 01:42:37 · answer #6 · answered by Murph 3 · 1⤊ 0⤋
they will come after both people for payment. If neither pays they repo and sell the car at auction, and you are still responsible for the whole payment I beleive. where they will sell the debt to debt collectors who are not very nice.
I suggest making payments, and trying to sell the car before the bank finds out you can't afford it.
At least you KNOW you can't afford it. you are better off, so SELL IT ASAP to get the $ for it, and pay off the loan.
Else both your credit reports will go to hell, as well as the stress..
NEVER NEVER NEVER NEVER CO-SIGN ANYTHING! it's not worth it!!!
2006-11-15 04:13:02 · answer #7 · answered by mp3tocd_man 2 · 0⤊ 0⤋
It will get Repo'd Your credit will be hurt badly...........The bank will take your car to auction and sell it for what ever they can get.
You will be forced to pay for the difference. Kick her in the butt to make one payment.......make a deal with the bank on catching the payments up.........you will be much happier.
2006-11-15 03:50:41 · answer #8 · answered by scottbrink2002 2 · 0⤊ 0⤋
The best thing is to take her car and sell then pay off the car. If you do not do this bills will come to you. then they will repo the car and kill her credit score and your credit score for life.
2006-11-15 08:42:10 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Either she or you sell the car and hopefuly get what you have left owing on it.
THe finance co, sends someone out to reposess it.
they sell it for much less than it's worth and you
still owe them the difference....
They sue when you don't pay and get a garnishment
against your wages......
2006-11-15 01:41:46 · answer #10 · answered by Anonymous · 0⤊ 0⤋