my sister co signed a car for her friend, now he hasn't paid for a couple of months, the bank sent a letter saying that they need to get paid other wise they'll will excersice their rights. here is what i want to know. if he doesn't pay they'll come after he as well, and then they will repo the car, sell and they would have to pay the difference on the balance. i'm i right so far?
it will go agianst her credit, i know the guy and i'm sure he's not gonna pay, if she doens't pay the remaining balance can they put a lean on her house or can they somehow get to her bank account or something?
2007-11-29 15:22:24 · 5 answers · asked by irkana 3 in Business & Finance ➔ Personal Finance
First of all your sister needs to make sure the bank has a right to cure on that unit. If they do have a right to cure they can come get it.
When they come and get it, she is going to have a repo fee added to the balance owed, that can be from 300.00 and up depending on where she lives.
After the car has been taken it will sit on a lot until they decide what auction to take it to, this is where it really begins to suck. She might have to pay a storage fee as well. Some places put 15 day holds on units so the unit will sit for 15 days and if the repo company has a contract with that bank that says they can charge up to 50.00 a day that’s just the way it is.
When the unit does go to auction it is going to be sold dirt cheap. Prices are down now, because repo's are up. The 3 auctions I take to here are so full they have no room, so my lot sits full waiting for theirs to empty out. I saw a 2006 Ford Mustang go for 4,500.00 Friday, if that gives you any idea what’s going on.
So what can she do to save herself at this point? Get the keys, call the bank, and find out what they want done with it. It is still bad on her credit, but when she does a "volunteer repo" vs. a repo, it won’t hit her as hard.
When that gets done she is still going to have to make some sort of payment, but she can take the person to court and sue them for the balance, if she was only a co-maker on the loan and never had physical custody of the unit.
I see people do this all of the time, and NEVER does it have a good ending. It is an expensive lesson to learn.
2007-12-02 20:24:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I believe you've got the correct information. The car gets sold, the bank may not get the best price for the car, both your sister and the friend will be liable for the balance remaining. She should determine the car's value, make arrangements to sell it with the knowledge of the friend and get the car sold. They will need to talk to the bank to make arrangements for the balance and get the bank's approval. It will be easier to sell at retail and deal with the bank than to wait and see how bad it can get.
2007-11-29 15:31:12 · answer #2 · answered by JJ 3 · 1⤊ 0⤋
Yes, they not only CAN, but they WILL. I hope your sister has learned a valuable lesson here. If someone needs a co-signer, that's the first indication that you start running in the other direction.
When your sister co-signed, she basically guaranteed payment if he defaulted, and the credit firm will use all available means to extract its just due wherever it can get it.
2007-11-29 15:48:55 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
They don't have to give her (or you) a chance to buy it back. They don't have to get fair market value for it, and she will be charged for the cost to recover and sell the car.
2007-11-29 15:32:36 · answer #4 · answered by T C 6 · 1⤊ 0⤋
yes yes and yes -- tell your sister to never sign anything in the furture!!!
2007-11-29 15:29:57 · answer #5 · answered by mister ed 7 · 1⤊ 0⤋