I co-signed with my brother so he could get heavy equipment operator training. In good faith that he would pay the loan back. He lost his job after six months and they didnt help with job placement again like they said they would. The loan has been in forbearance. We actually thought it was for about 5 months and found out that it wasnt. But they worked with us and my bro. finally got all the papers filled out properly. The loan is in forbearance right now. However I want my name off of it before payments are due again.
PLEASE HELP!!!
2006-12-28 06:33:11 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
probably not, you would have to discuss this with the finance company, it sounds like your brother has no credit or colateral and of course doesn't have a job. You on the other hand must have good credit or they wouldn't have let you co-sign. Most likely you are stuck with the bill. Don't you love siblings.
2006-12-28 06:39:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Never co-sign for a loan you cannot afford to pay yourself. My ex sister in law asked me to co-sign for her when I was first married to her brother.
When she missed payments, I got a demand letter and was informed that my credit would be hit if I didn't make good. I'd never do that again.
Of course, her brother (when he was still my husband) purchased a vehicle with joint ownership - in the divorce, guess what - unless he refinanced the loan, I was put in the same position as if it were a co-signed note. Even though our divorce papers said he was responsible for that debt - the bank had my signature on the original documents.
He was late on a couple of payments, I got demand letters. Luckily he did get the money to pay the bills - but I could have been responsible.
Unless he gets another lender to take over the debt and either has better credit somehow (not likely) or someone else willing to co-sign, you're on the hook if he fails to pay.
Oh, and remember that if you want a loan for any reason (car, home, credit card, whatever) - the fact that you co-signed ties up YOUR available credit.
Lending agencies factor that debt into your debt to income ratio just in case you get stuck paying it.
Sorry.
2006-12-28 14:45:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, there is no way out of it.
The best thing you can do at this point is to have your brother pay YOU, and you make the payment so you know your credit is not ruined. In most cases those who co-sign end up making the payments. If your brother was a good credit risk he would have been able to get a loan on his own.
Whatever you do, don't let it go to collections.
2006-12-28 16:50:10 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
While you cannot just take your name off of a loan, you should definitely call the bank and talk to their collections department. I used to work for a bank (in the loan dept) and our collections agents were very willing to work with people - as long as they tried to make the payments.
It doesn't sound like your brother is going to voluntarily refinance this loan, but you should also talk to him. Explain that this is destroying YOUR credit, and try to work something out.
Good luck...I'm sorry this happened to you.
2006-12-28 14:59:42 · answer #4 · answered by dpruitt75 1 · 0⤊ 0⤋
You can't. Sorry, I know that's not the answer you wanted.
But if people could change their minds about co-signing, what good would it do a creditor to get a co-signer?
You could have your brother re-finance. But no one would give him a loan without a co-signer. And now he probably couldn't find anybody to co-sign for him. You need to jerk a knot in his tail!
2006-12-28 15:07:37 · answer #5 · answered by Tina 3 · 0⤊ 0⤋
You can't remove yourself as a co-borrower on any loan.
2006-12-31 00:30:11 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
The loan will need to be refinanced.
2006-12-28 14:36:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
sell it
2006-12-28 15:31:45 · answer #8 · answered by besthusbandever 4 · 0⤊ 0⤋