I currently have a loan and someone cosigned with me. He wants to come off and the bank will not let him. I have not missed a payment and the bank is happy with the arrangement. He told me today he is going to pay the loan off and sue me for it. Can he do that and if so how? I am making the payments as agreed. We never had a contract between us that said I would pay it off in so many months other than what we have with the bank.
2007-07-20 12:47:16 · 11 answers · asked by sna 1 in Business & Finance ➔ Personal Finance
*I have told him that if it is that important to him to have it off his credit I would be glad to pay him instead but he is really being difficult. He said no he wants to be done with it and give it all to him at once. I told him I do not have that kind of money in one lump sum. I don't know what to do. He is really being ugly and I HAVE NOT MISSED A PAYMENT!!!*
2007-07-20 13:07:34 · update #1
Note:
This loan is unsecrued.
2007-07-20 15:49:11 · update #2
He cannot. Whether it was a surety or a guaranty contract, he can only recover his money from you if you had to pay it off because you were in default. So if he wants it that bad, default and then you can pay him off.
2007-07-20 12:53:01 · answer #1 · answered by Keith 4 · 0⤊ 1⤋
If he pays off the loan, which he can do whenever he wants, the bank can assign the note to him. At that point he will hold the note and you can/must make payments to him.
Unless you are in default, he cannot demand the balance from you, sue you, or do anything else silly. He simply becomes the note holder instead of the bank.
Fine. He gets to earn whatever interest on his money that the bank was getting. That's the extent of it. You are undamaged, and so, by the way, is he.
2007-07-20 14:55:01 · answer #2 · answered by copious 4 · 0⤊ 0⤋
You may work out a deal with him as follows:
Hey pal, I appreciate that you co-signed the loan for me.
How about
1. you pay off the loan.
2. I pay you monthly for the remainder of the loan. I use the monthly payment I am paying now to the bank to pay you.
. But make sure you do this ONLY AFTER you get proof that he pays off the loan. take him to lunch or something.
2007-07-20 13:01:06 · answer #3 · answered by buoisang 4 · 1⤊ 0⤋
He can pay it off. I'm not sure on his legal grounds to sue you for the money if he pays it off.
If he wants it out of his name then have him pay it off. Get a written promasary note stating that you will make the remaining payments to him instead of the bank. He will make a little bit of interest off of your payments and he'll be free of the loan on his credit report. He can claim the loan payments as income if he wants to use it to quaify for a loan for something else in his own name. A house or a car maybe.
2007-07-20 12:53:05 · answer #4 · answered by Anonymous · 0⤊ 1⤋
I agree with Heinz M. He can pay it off if he wants. I doubt he could win a lawsuit as long as you pay him according to the terms of the original loan. I know mortgage loans are sold every day. The buyer must accept payment according to the original terms. The same principle should apply in this case. If you can refinance on your own, this would be a good time.
Note: I am not a lawyer. This is just my opinion.
2007-07-20 13:33:19 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
If you did not sign a paper saying you would pay of early to him / her and they pay the loan off you have choice
Be hight in ethics and keep payment to the cosign person to pay off the loan
or sing Happy Birthday and say thank you and in this case
you willloose a friend so be careful how you choose
2007-07-20 12:54:02 · answer #6 · answered by aaricka 4 · 0⤊ 1⤋
He can't sue you over this. He can pay it if he wants to, but he will be surprised to find out that paying off a loan like that is legally a gift and he won't get far in a law suit.
2007-07-20 13:37:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Let him pay it. You cosigned with him for a loan with the BANK, not with him. I doubt there is much he could do about it if there is no contract between you. Sounds like extortion to me, which is illegal.
2007-07-20 12:53:23 · answer #8 · answered by anonevyl 4 · 0⤊ 0⤋
NO WAY CAN HE DO THAT!!!! He is threatening you for money and that is ILLEGAL!!!! Only if u default on the loan can he sue you, and obviously u r not defaulting!!!
2007-07-20 13:07:48 · answer #9 · answered by Huey79 2 · 0⤊ 0⤋
If you keep paying him, he has no legal reason to sue. ~
2007-07-20 12:55:39 · answer #10 · answered by Anonymous · 1⤊ 0⤋