I made the huge mistake of cosigning on a car loan for my cousin who has really bad credit. I am now looking into buying a house and would like to get my name off that loan. I know the only way would be for him to get another loan (refinancing) on his name, but I was told we would have to wait at least 8 months to guarantee approval. I want to do it now, but I am afraid he won't qualify yet. It's only been three moths, and I am making the payments so I know they always arrive on time. How much longer should I wait?
2007-10-02 10:55:29 · 7 answers · asked by wwme800@sbcglobal.net 1 in Cars & Transportation ➔ Buying & Selling
I make the payments to make sure they arrive on time, but then he pays me back, not always on time of course.
2007-10-02 11:12:59 · update #1
You cant get out of the car without him refinancing it. As for the payments, if you can show that your cousin is making the payments by cancelled checks, that payment will not be considered in your debt ratio when purchasing a house.
Bottom line is to have him write out the check every month and you can see that it is sent out. You are doing no good by paying it on your own.
2007-10-02 11:26:31 · answer #1 · answered by twinturbo1994 4 · 0⤊ 0⤋
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2016-09-26 20:04:18 · answer #2 · answered by Celeste 3 · 0⤊ 0⤋
You said that you are making the payments already. Is your cousin paying you the money? Can you talk him into selling the car, and buying a cheaper one?
As you now know, never co-sign for a loan. It will do you no good. Don't let your cousin take advantage of you. Contact a lawyer and see what he says. You may be able to repo the car yourself and sell it at auction.
Good luck.
2007-10-02 11:01:24 · answer #3 · answered by Fordman 7 · 0⤊ 0⤋
I did that once for a girlfriend. When she stopped making payments the bank called me. I immediately put an ad in the paper for the car and sold it.
Don't worry about your cousin getting mad, if he/she cared about you they would be making the payments on time. You are being taken advantage of.
2007-10-02 11:37:54 · answer #4 · answered by Airmech 5 · 0⤊ 0⤋
Sell the car. Tell your cousin sorry, but you made a mistake and that the deal is about to ruin your credit.
2007-10-02 14:34:24 · answer #5 · answered by mccoyblues 7 · 0⤊ 0⤋
the loan is in your name right? so in reality the car is yours being its your money. take and sell the car, pay off the loan, and forget your cousin. Its not your fault they have bad credit so why should you suffer.
2007-10-02 11:01:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you are legally part owner of the car when you signed for him. I would suggest telling him your situation and that he isnt being very responsible for not paying you on time etc. and let him know your trying to buy a house but cant with your name on his car. I would make him sell it.
2007-10-03 07:41:03 · answer #7 · answered by ♥Kempa♥ 4 · 0⤊ 0⤋