She and I had a family falling out which mkaes it harder for me to contact her. I need some type of legal adice on what to do with this situation. How bad can this hurt my credit?
2006-12-16 06:08:58 · 18 answers · asked by Anonymous in Business & Finance ➔ Credit
Pay off the loan and take the car back. Talk to the original creditor (the bank, lending institution, or finance company) and explain the situation. Unfortunately, her delinquency will ruin your credit.
You can take possession of the car, by going to court. Get a statement from the finance company, and your records of attempts to contact your niece. The judge will issue a "write of possesion" which will allow you to confiscate the car. In the meantime, you should make payments for the car, to preserve your credit score. After the writ of possession is awarded, you could try then recoup payments made by taking your niece to small claims court. However, if she has no money to pay, most likely the judgment will go on her credit report, and she will ignore that for 10 years, and then it will go away.
Patience, and you will get the car back. Even though it is frustrating to make payments for her, it will be worth it in the long run to preserve your credit.
2006-12-16 06:18:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Cosigning is a no-no. The best intentions seems to have a way of reversing. Basically, you can just pretend that you didn't cosign the loan. Pretend that you are the sole debtor on the loan and your credit and credit collection practices will be on you, and you alone. Because thats how the credit company will play it out.
Click the link below for info about co-sign from FTC website.
2006-12-16 06:16:31 · answer #2 · answered by SharpGuy 6 · 0⤊ 0⤋
This can hurt your credit very bad. Every payment she makes late affects your credit rating also because you are on the loan with her. Cosigners have equal responsibility. If possible get the car out of your name and into hers alone, even if she has to pay a higher interest rate, then it will not have any effect on you. Good luck.
2006-12-16 06:13:52 · answer #3 · answered by SKYDOGSLIM 6 · 0⤊ 0⤋
It can hurt it a lot. If you can pay for the car yourself, and have the title transferred in your name, you will be better off.
Best advice: contact the company that you used to co-sign for this and ask them for help. You may have to go through several people before you get the right person. Keep asking for the manager.
You are stuck otherwise. This happened to me with my own son. The car was paid off but still showed on my credit. I had to go through a process to eliminate this from my credit in order to buy a home.
Best of luck to you.
2006-12-16 06:13:33 · answer #4 · answered by makeitright 2 · 0⤊ 0⤋
That's the risk you take when you cosign. I don't know any way to get out of it. It can hurt your credit significantly if she doesn't pay. However, you might want to talk to the lender about your options. If she quits paying, you might be able to take posession of the car and make payments yourself. You'll still have to make payments but at least you'll have something to show for it :) Another option might be to sue her in civil court. The best advice would be to consult witn a lawyer to find out your options in the state you live in.
Hope this helps!
2006-12-16 06:13:03 · answer #5 · answered by rita_alabama 6 · 1⤊ 0⤋
This is what co-signing means. You're telling the bank "hey, I trust this person enough that I'm willing to step in and make the payments if she falls through."
How can you get out of it? Pay it off. You can't un-cosign for it.
Co-signing is bad juju. If a financial institution thinks someone is too much of a risk to lend money to, I'm certainly not going to disagree. Just say no.
2006-12-16 06:12:34 · answer #6 · answered by Anonymous · 1⤊ 0⤋
You can't un cosign a person. The only solution to pay the loan off on-time so that you credit score doesn't go down and never co-sign for anybody again.
2006-12-16 06:16:13 · answer #7 · answered by John J 3 · 0⤊ 0⤋
You are implying that she is at least making payments......you should secretly send in a month's payment to have a cushion......every 3 months or so do it again.....that is the only way you can Protect your credit......be on top of it....
Maybe you can talk to the lender about keeping your payments secret so that she doesn't just stop paying all together....either way you'll have to pay......better a couple payments here and there than the entire loan and trashed credit.
2006-12-16 09:55:01 · answer #8 · answered by Paula M 5 · 0⤊ 0⤋
The best thing that I can tell you to do is to make her pay her payments on time because it is going to hurt your credit bad and if she is still paying for the payments late tell her that you are going to take the car away from her because in reality the car is yours because it's under your name. I know this because I work in a car dealership. I hope that this helps you... Good Luck and God Bless
2006-12-16 06:15:01 · answer #9 · answered by mysteryousmtz 6 · 0⤊ 0⤋
Pay it off; send a truck to repossess it and sell it .
this can really hurt your credit; we co-signed for our son;( we did not even know he was late) when the time came for us to buy a car;there was a red flag on our credit report;so my husband called to find out it was my son's doing; he was late 4 months; so we ended up paying. a good and expensive lesson to learn. been there.
2006-12-16 06:24:03 · answer #10 · answered by COCO 4 · 0⤊ 0⤋