I co-sign for a friend car was repo?

Question

i co-sign for a friend on a car that was 21,000 and maxed out my cedit card to 6,000 collectors are calling my mothers house everyday. Is there a way for me to sign this dept over to his name he is will to sign some legal papers. the amount they are asking him to pay is too much he cant pay it im 25 this is the biggest mistake i ever made in my life my credit is shot to hell. Can he get a loan with bad credit? HELP HELP HELP to young for this

Answer 1

When you co-signed the loan for him you agreed to pick up the outstanding debt and make the payments if he defaults on the loan. The only way to protect your credit is to make the payments and get it back current. He can also try to find someone to refinance a loan without you as a guarantor (co-signer) and repay the loan that way. Good Luck. Hope this helps. Danny

Answer 2

YOU CO-SIGNED!!! You are responsible if the other person fails to pay the loan! Your credit is now going down the tubes also! He won't get any credit right away with a repo! Not only are you responsible for the $21,000 but you're going to get nailed with the $6,000 credit card debt making that one expensive car deal! What were you thinking? As the old saying goes-----"friends and money don't mix"!!
If I were in your shoes I would get an attorney an try and work something out with the credit company where as you agree to honor your obligation in exchange they remove any negative credit reporting! They don't want a repo either! It's a no-win proposition for everyone! DUMP THE FRIEND! Then sue his assssss in court! Doesn't matter if he's broke today! Sue him anyway because you never know when he might come into a win fall from a lawsuit or inheritence--then you collect! Keep renewing the judgement!!!!!

Answer 3

Yes you are right, you made a huge mistake! You are entirely responsible for the debt of your "friend", he is bailing out on the responsiblity, you signed saying you would cover the loan if he bailed out, well, he did and now you owe. You can however, keep the car and make the payments. If the car has already gone into repo and has been auctioned, you will be responsible for the balance between the loan and the auction amount, which will be thousands less than the car's worth. You can expect this credit error to follow you for years, it's going to show that you had a repo. I guess you've learned a powerful lesson, right? Some people are users, some are givers, it's unfortunate that the givers get screwed over for being kind, caring individuals. Karma is good, try to remain positive in a crappy situation. Good luck,

Answer 4

Dude, it's the biggest mistake indeed. Your credit is all you can have when you have no money. When you signed you made a promise to pay should your friend couldn't. If his car was repo, the lien or loan holder may allow him to find someone to buy the car before they report it as a loss or a repo, but of course, the loan holder will keep any money anyone pays for the car. As your "friend" to find that out.
Have him sign a notarized document stating that it was his fault he did not pay for the car although I think this won't help you much. Call your credit card company and make a payment plan and pay as agreed. Show your creditors that you have problems paying but you want to pay. Don't let your credit get any worse thatn it already is! For more credit tips, check:

Answer 5

first of all....what the hell?!!

the purpose of being a co-signer is to pick up whatever he doesn't pay. now that he can't pay it, you have to pay it. it's not 50/50 like you can sign over your half of the debt to him. you are reponsible for everything he does not pay.

call the bank and ask if you can take over the entire payment AND the car. if you can't afford to pay his car payments, you should have never co-signed on it. and work out a payment plan with the credit card company.

most of all: don't panic. having no credit is not the end of everything. it can be rebuilt over time. until you get it back together, you have to deal with high interest rates and get used to paying CASH for just about everything. just don't think you have to declare bankruptcy. at 25, THAT would be the biggest mistake.

Answer 6

This is what's known as 'stupid tax', and you are about to pay a pile of it. The collectors will go after whichever of you two dumb@$$es has money. When you CO-sign you CO-own the responsibility of the loan. Tell your mom to stop answering the phone, tell your deadbeat friend to get three jobs and PAY the damn loan off. If he doesn't, you can sue him but it's really hard to get blood or money out of a rock.

Answer 7

Bad move guy you got problems and you can't even get the car from him if he still had it.
Everyone out there never co-sign on somebodies loan it will come back to haunt you. It brings your credit down just don't do it.

Answer 8

Nope. When you co-signed, you essentially said "If he defaults on the payments, come see me and I will pay it off for you."

He did. You owe. Pay them.