I am the cosigner on a friends car loan. In retrospect, that was a BIG mistake! He had the means to pay the loan when he bought the car, but is now getting sued by his ex-wife and is having 65% of his paycheck given to her so he cant pay the monthly loan on time every month. He currently has 6 late payments. I was never told he was late by him or by the creditor and just found out that I was denied for a personal loan because of the delinquency. Is there anyway I can take my name off the agreement? My credit was really good and is getting really bad really quick because of him. I dont want it to keep getting worse because he still has years left to pay on the car. Any advice on how to stop being a cosigner and try to restore my credit?
2007-06-06 08:57:48 · 8 answers · asked by Amanda 7 in Business & Finance ➔ Credit
Take the car from him and try to sell it. With that much negative already, you are very unlikely to get any loan or credit card to bring it up to date. Pay as much of the delinquency that you can but do not let him keep the car. Hell he is having a free ride at your expense.
2007-06-06 09:11:12 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Cosigner. You had bad credit, so someone stepped forward and said "I'll put my neck on the line. Even though he has horrible credit, I will make any payments he misses." If you live at the same address, and drive the same car, why isn't her name on the insurance? It surely should be. So the question is, can you now decide to take your name off your car and your loan? I suppose you could ask her if she wants to take over payments, and sign away your interest in the car if you wanted to. Or you could be a jerk, move out, leave the car and not make any payments and ruin her credit along with yours when it gets repossessed. How much do you still owe on the car, and how much is it worth? Perhaps you could sell it, and start over without a cosigner on a different vehicle now. Guess it's kind of up to you, but the two of you need to communicate a bit better I'd say (yeah, I know, it's none of my business. Just an observation.)
2016-03-13 06:36:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You won't be able to remove yourself as the co-signer unless you pay off the entire loan and your friend can somehow refinance the car in his name alone, which seems doubtful, since you had to co-sign in the first place.
The standard advice is NEVER to co-sign unless you are ready and willing to make the payments if the other person defaults for any reason.
By now you realize the magnitude of your error, and sadly will have to live with the consequences of the error.
2007-06-06 09:12:56 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
The only way is to have him refinance the car loan and leave your name off of it. You can't just drop off w/o the loan being settled by either a refi or a pay off.
I hope you are still young while learning this valuable lesson. It will take years for you to get your credit back.
2007-06-06 09:13:19 · answer #4 · answered by Anonymous · 3⤊ 0⤋
You are liable for the loan. That's what being a co-signer means. The only way to improve the situation is to pay off the loan, or get him to so. Unfortunately, you've got no leg to stand on here. Co-signing was a big mistake.
You may want to try to convince him to sell the car to repay the loan.
2007-06-06 09:07:22 · answer #5 · answered by jargent100 5 · 1⤊ 1⤋
Never happen on a delinquent loan. Only chance would be to pay off the loan even if it means selling the car; especially since you are the only guarantee they will get paid without repoing the car.
2007-06-06 09:01:28 · answer #6 · answered by wizjp 7 · 0⤊ 0⤋
The only way to remove your name is for someone else to finance the entire balance in their name.
If your friend can not do this, you need to think about repossessing the vehicle and making the payments yourself until you can sell it and pay off the loan.
2007-06-07 03:21:36 · answer #7 · answered by ? 7 · 0⤊ 0⤋
Unfortunatley, this was the risk you took by co-signing the loan. Your only option now is to pay the late payments and make sure the payments are current going forward to restore your credit.
2007-06-06 09:06:29 · answer #8 · answered by LB 6 · 0⤊ 0⤋
reposses the car and sell it to pay off the loan.
Think of it as being YOUR car as well, not just his.
You cant get yourself off of it unless he find a creditor who is willing to give him a loan by himself to take over the original note.
2007-06-06 09:06:42 · answer #9 · answered by Mrs. Bethy O. 4 · 0⤊ 0⤋