i co signed for a car loan .after being away for a year i found out that the person i co signed for never payed for the car.what can i do.can i returned the car to the creditors?
2006-12-12 22:38:08 · 8 answers · asked by rihanna 1 in Cars & Transportation ➔ Buying & Selling
When you co-signed, there was a form you signed that would have been titled "Notice to Cosigner" which states if the primary person does not pay the loan, it then becomes your responsibility as well. If it was repo'd, then it will be sold at an auction and both parties will be responsible for the difference. Either way, it will become either an I-8 or an I-9 on your credit report which is bad. This is the case is most states, however if you let us know what state you are from, it might make a slight impact on your obligations. I hope this helps.
2006-12-13 02:50:08 · answer #1 · answered by The Auto Evaluator™ 7 · 4⤊ 0⤋
Obviously, as you found out, the dealer lied to you. You're name is on a loan until it's paid in full and by co-signing you're agreeing to take full responsibility for the loan should they fail to pay it. In short, you are on the hook for the $13,000.00 and more than likely they will be calling you for it. As far as her filing bankruptcy on it - I don't think that'll remove it from your credit report. One suggestion here would be to call your attorney. There may be a way to remove it given that they didn't contact you when she defaulted on the loan - therefore, you weren't given a chance to keep it current. I'm sorry. I know it's hard when all you wanted to do was help your friend, but cosigning's never a good idea. I've had to turn down some friends and family. They don't realize at the time what kind of a position this will put you in. I hope you're able to work this out! Next time, just apologize and tell them you can't.
2016-05-23 17:25:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can make up the missed payments. If you don't, your credit score will take a MAJOR hit.
Sad fact is, since it's been a year with no payments, it's almost certain that it's already been repo'd and your credit is already trashed.
NEVER co-sign for ANYONE! I won't even co-sign for my kid. If the other party doesn't pay, the loan company WILL come after you and you WILL have to pay! Ignore the fool that said you don't - he can co-sign for me anytime! LOL
2006-12-12 22:43:13 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
They get the Car and you get bad credit.
I co-signed for my son and he missed 7 payments that I had to make and I finally sold it and protected my credit. IN your case you never had an option to pay...it's a default on the plaintiff and you find out when you get back a bit too late. So pay it off or give up the Car and either way your credit is shafted now.
2006-12-12 22:48:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The loan company really has no recourse against you other than the blemish on your credit report. They technically cant make you pay for the car. But yes, if I were in your shoes I would give the loan company a call and tell them where the car was. All so, if you cant make the payments on a car surrender it. It is not the same as having it repo'ed. When a care is repo'ed you have to pay the balance on the car after it is sold at auction. If you surrender it, it is a done deal.
2006-12-12 22:41:45 · answer #5 · answered by Hawk996 6 · 0⤊ 2⤋
The creditors can still seek payment from you! Where is the car, does the primary loan applicant still have it or is it in your possession. If you have it, talk to the lending company and see what they will settle for. Realize that it its badly damaged or far below its usual 'book' value, they may not want it but will expect you to pay. Good luck.
2006-12-12 22:43:03 · answer #6 · answered by jack w 6 · 0⤊ 0⤋
Unless the rules have changed and in your case, I hope they have, you will be responsible for the car payment and if you turn it back in, your credit will be damaged as well as the other persons. In the future, be cautious about co-signing and if you do, keep up with it. It is as much your business as it is theirs.
2006-12-13 00:14:16 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Your stuck with it. A rule to go by...NEVER ever co-sign a loan unless your prepared to pay the entire loan. A bummer way to learn that though.
2006-12-12 22:40:45 · answer #8 · answered by Anonymous · 0⤊ 0⤋