this has messed up my credit record real bad. as the loan is still outstanding. is there a way to get out of this?
2006-12-28 08:32:47 · 10 answers · asked by nwanso_nguti 1 in Business & Finance ➔ Credit
First of all, look at the contract that you co-signed .. is there a return clause (or some other voluntary clause) where you can return the car to the credit company, and just have to take a small to no loss? Otherwise, you need to get your friend to tell you where the car is at -- and sign over his interest in the vehicle so that you can SELL it to recover what you can and pay off that loan.
Sorry, no quick answer to this question -- and until the loan is PAID in FULL .. you are LIABLE for the outstanding balance, and will have to PAY on schedule or it WILL affect your Credit Rating.
2006-12-28 08:43:41 · answer #1 · answered by sglmom 7 · 0⤊ 0⤋
The easiest thing (and most moral thing) you should/can do is tell the bank or lender where the car is so they can repossess it. After they repossess it, they will sell the vehicle at auction. If there is a deficiency due (they did not sell the car for as much as is owed on it), then you will still be responsible for the balance. If they sell the car for MORE than what is owed on it, they will send you back some money. Chances are it's the 1st case. If you do not know where they car is.......try EVERYTHING to find out where it is and get it back to the bank.
2006-12-28 08:42:56 · answer #2 · answered by blueprincess37 1 · 1⤊ 0⤋
Depending on how much has been paid off the car,their is normally a clause in the contract which allows you to hand the car back after a certain sum has been repaid,contact the credit company and see what this is,if not explain the situation and see if they can give you a settlement figure
2006-12-28 08:38:56 · answer #3 · answered by NATALIE W 3 · 0⤊ 0⤋
Do not follow the advise of having the car repo'ed. This will go on your credit report because you signed. When you co-signed you took full responsibility of this debt if the original signer (your jailed friend) didn't pay. Now the debt falls to you. A repossession is viewed poorly by lenders. It effects your credit score tremendously for 7 years! Do you want your credit ruined?
You need to first take possession of the vehicle and try to sale it outright for the most you can get for it. Then pay that amount to the creditor. Whatever balance is left over you need to set up payment plans with the creditor if your credit means anything to you at all! Keep a record of all payments you make to this creditor. Keep all receipts. Once your friend is out of jail, demand payments from him or her on these payments you've made. If he or she refuses to pay you back then mark it down as a lesson learned...never trust anyone when it comes to finances, debt, and money!
If you co-sign for something you are accepting responsiblity for their debt if they can't pay or refuse to pay then you are left holding the bag. Never put yourself in this situation. It's not good. Friends and family will destroy your credit if they fail to pay! It's never a good thing to co-sign for anyone!
I hope you've learned a valuable lesson from this! NEVER CO-SIGN! And remember if you follow these previous posters advise and allow repossession of the vehicle you are ruining your own credit! Sale the car, and make payments! You did this to yourself by co-signing, now be responsible for your credit and take control of it!
2006-12-31 07:58:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
First of all, where is the car? If you do not have it in your possession, get it.
Second, contact the lending bank and explain what has happened, it does not matter if you are a co-signer or a co-maker, you are still responsible for the payments when your friend does not make them.
If the bank will settle for less than you can sell the vehicle for? Sell it and pay off the loan. If not you can still sell it and pay the balance due. Either way, you need to make the payments while you are trying to sort this out.
Worst case, you can have the bank ropo the car, they will sell it at auction and you will be responsible for any balance due.
A lot of people co-sign loans not realizing what can happen to their credit if the other person does not make the payments on time or not at all.
On the other hand, it's a great way to establish credit for someone that has none since both parties get credit when the payments are made on time.
Good luck, you are going to need it.
2006-12-28 09:02:48 · answer #5 · answered by ? 7 · 0⤊ 6⤋
Sell the car then beat your friend down when he gets out of jail.
Then take him out for a beer.
2006-12-28 08:36:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Sell the car.
2006-12-28 08:35:12 · answer #7 · answered by Kevin K 3 · 0⤊ 0⤋
sell the car and accept your losses or make the payments and keep the car
2006-12-28 08:43:36 · answer #8 · answered by curious2know 1 · 0⤊ 0⤋
i think you have to turn the car back in. you can also get more info from this board about how.
http://creditboards.com/forums/index.php?
2006-12-28 08:41:34 · answer #9 · answered by Morgan 3 · 0⤊ 0⤋
have you learned your lesson then ? dont do that again !
2006-12-28 09:14:16 · answer #10 · answered by bbq 6 · 0⤊ 0⤋