If a loan company reposses a car what am I liable for? Is it better to just let them repo it then to stay three months behind on payments ? I am in a situation where I co-signed for someone a loan that has hid the car and wont give it to me and is continuly behind on payments and I am not wanting to pay out of my pocket.
2007-02-27 09:37:46 · 8 answers · asked by STEVE W 1 in Business & Finance ➔ Credit
Repo is the worst!!! Try and help them catch up if you can
2007-03-05 08:26:54 · answer #1 · answered by *G* 3 · 0⤊ 0⤋
Yipes! You are in a mess. I'm so sorry to hear that someone is taking advantage of you like this. If the car gets repo'd, you & the other debtor will be equally liable for the deficit balance after the car is auctioned. If you can located & seize the car (hire an off duty cop to go w/you or just get the sheriff or constable to help you - they will in most places), then you can sell it retail & settle the difference with the loan company either as a lump sum or by making payments. I hope you can find it. Your credit is getting trashed every single day this car is out there & not being paid on. I would say to catch up the payments, but do not do that while the other party is still in possession of the car.
You have enough problems, but I hope you will consider this a very painful lesson. They needed a cosignor b/c the bank knew the other person was a deadbeat.
2007-02-27 17:48:05 · answer #2 · answered by Tom's Mom 4 · 0⤊ 0⤋
You are just as liable as a co-signer for the payment as the person who has possession of the vehicle. Your situation is the best example of why anyone should not co-sign on a loan.
You're getting bad marks on your credit report for each month you do not pay the fee plus the late months, too. Just call the loan company and have them pick-up the car.
2007-03-03 17:20:38 · answer #3 · answered by annazzz1966 6 · 0⤊ 0⤋
As the co-signer, you are liable for the entire loan amount if it goes into default. The loan company will not put up with payments being 3-months behind for long. They will find the vehicle repo it and sell it at auction. Whatever amount they get will be applied to your balance and then you will be liable for any balance due. This can result in collections and judgments which can result in your paycheck being garnished.
This is what happens when you co-sign for deadbeats.
2007-02-27 17:47:43 · answer #4 · answered by ? 7 · 0⤊ 0⤋
If the car is repossessed, it will be sold for much less than it would bring in a private sale. The auction fees and the repossession costs will be added to the balance on the loan. Anything above the sale amount is still owed. If possible arrange for a private sale to minimize the deficiency. Since you don't actually own the car, that may not be an option.
This is why you should NEVER cosign for anything. By requiring a cosigner, the finance company put you on notice they expected the situation you are now in.
2007-02-27 19:44:35 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
unfortunately this is the price you have to pay for co-signing for someone. If the buyer does not pay then that makes you liable to make the payments. If you let the car get repossessed that will reflect on your credit report as well. If you don't want to ruin your credit then you need to get the account current and hope your friend starts making his payments every month.
2007-03-04 23:48:52 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
Repo looks bad on your credit as well since you are the co-signer.
You may want to pay the outstanding balance and report the car as stolen to avoid credit damage.
2007-02-27 17:41:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Try to pay off the loan yourself,then sue the person who has the car for the money owed plus costs or the return of the car and title in your name.
You can then keep the car or sell it for what you can get for it to recoup some of your money.
2007-03-06 00:07:42 · answer #8 · answered by Ralph T 7 · 0⤊ 0⤋