I CoSigned A Car Loan for my Fiancee And...?

Question

I co-signed for a car loan for my fiance and during the signing realized that his name is in the co-sign position on the loan docs while my name is the owner.
When I mentioned this to the loan processor, at the car dealership, he shrugged it off like it was no big deal.
In the meantime, I'm going crazy. Do I own this car? Who is responsible? Is he the co-signer on his car?
What happens in case of a default?
I admit that I am a little more than a little confused.
Thanks!
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Answer 1

the name on title is what counts for owner; but sence one or the other is co-signer both are responsibile for payment. if purchaser defaults the co-signer is responsibile to pay. if car is repoed it is reported as bad credit on both signers. that is the meaning of cosigner if buyer can't or don't pay u r agreeing to accept and pick up payments. but never the less all paper work should be corrected for ur own protection and credit. get corrected ASAP.

Answer 2

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Answer 3

The reason your name is 1st is because they probably could get a better interest rate on the auto with your name 1st. Legally you are the owner of the car...

Here's the deal...even with you being the legal owner of the car you are both 100% responsible for the payments...A person needs a co-signer when their credit is too new or too poor to purchase the auto on their own. When you co-sign you are saying to the bank "if this person defaults on the loan I agree to pay the loan, even if I do not have possion of the auto." So legally even if your name were 2nd you would still be responsible for paying the loan and the loan will be reported to both of your credit reports.

It is a TERRIBLE idea to co-sign for anyone who you are not married to. You become responsible for that person making the payments on time and in full...if they make late payments or default on the loan that affects your credit poorly. Unfourtonately now that you have signed the loan documents you are stuck...your name is not that loan until it is paid off or it is refinaned. You should check to see if there is a grace period that you can go back to the bank and tell them you have changed your mind about the car...usually you have 3 days to return the car.

Answer 4

Contracts of suretyship usually are for the seller's benefit--to have recourse in case the purchaser defaults on payment, and they can't collect from the purchaser -- they can then go after the co-signer.

If you were the co-signer instead of the Purchaser, you'd still have to worry about payments. I don't see a whole lot of difference there.

But I'm not sure about title to the car though. I imagine that would be in one parties name, probably the Purchaser's. But it really depends on what the contract says. It is possible to take title as joint tenants; more likely the contract calls for title to pass to one party.

Answer 5

The one thing I know for sure is that technically neither of you owns the car. The loan company owns the car and holds the title until the loan is paid off. It sounds to me like your credit was the stronger of the two of you, and so to get a better interest rate for the loan or to get approved at all, they had to put your name on the loan as the primary. Since you are both named on the loan, you are both responsible for the debt being paid and it will effect both of your credit scores. I think you need to call the loan company and make sure you understand the terms of the loan and the difference between you and your fiance in terms of the effect on your credit score.

Answer 6

Do I own this car? Only if your name is on the title.

Who is responsible? Both you and your fiance

Is he the co-signer on his car?Probably, but it doesn't matter because it's in both your names - if he doesn't make payments then you get to. The loan sounds like joint credit.

What happens in case of a default? They'll probably go after whoever looks like the better candidate to pay. And it goes on both your credit.

Answer 7

If you're name is on the loan as the owner, it's yours - regardless. That's how the legal system will see it. If the bank approved your fiance' for the car then I suggest you get in touch with the bank that's doing the financing and explain to them what happened. If it's a reputable bank they will want the loan paperwork to be in order. Also if they think he is the co-signer and you make the payments, he won't get the benefit to his credit if the loan is in your name.

I always love how car dealerships think legalities such as the correct signature in the correct place is "no big deal".

Answer 8

The letter from him is not a legal document. Because you cosigned on the loan, you are responsible for payment if he defaults. Also, if you are not the primary person on the account, you may not learn of the late payments until the loan is actually in default. The only way to remove any liability from yourself is to have him refinance the loan in his name (or his name and another cosigner's name).

Answer 9

TygerLily,
Tomorrow go to ur DMV find out who is on the title. if u then put it up for sale. sell it for as much as possible , finance the outstanding balance. have him get 2 more jobs so HE can buy a cash car next month.
u are responsible for the loan debt , legal fees , interests, towing charges, storage fees should he leave with car or not pay it.
u shafted ur self in the name of love.
visit daveramsey.com to learn the hard lessons coming ur way through others mistakes.
NEVER ever COn-sign for any one u aren't married to . period.

Answer 10

Who's the primary person on the loan and who's the cosigner doesn't really matter a lot - if the person who's supposed to pay doesn't, the other person has to. Either way, if he doesn't make the payment, you are responsible for it - and if the car is repo'd, it'll show on both of your credit reports.

The title will have one of your names on it, and that's the person who owns the car.