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Co-Signing of Car Loan


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#1 reds63

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Posted 17 July 2012 - 05:54 AM

I am in the State of PA. I have a similar problem. I co-signed for a car loan last year. There are issues with making payments by the other party on a monthly basis. I am concerned regarding my credit.
What are my current options?

#2 pg1067

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Posted 17 July 2012 - 06:05 AM

I'm not sure I fully understand your question. As a co-signer, you obviously are liable for the loan, and I certainly assume you knew that. You didn't say whether you have been making the payments that the borrower has not paid. You can make the payments and protect your credit, or you can not make the payments and risk the various consequences.

If I haven't answered your question, please clarify what you want to know.

#3 reds63

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Posted 17 July 2012 - 07:11 AM

Yes, I understand that I am liable for the car loan. I have been making payments if the other party is not able to. The initial agreement last year with the other party was to assist the them for financial reasons only and to be able to change over everything to the other party and release my responsibility after one year. At this point, I am concerned regarding getting contacted on a monthly basis by the lender (*******) if the payment is not received by the 9th of every month with the latest of the 19th of each month. What I want to know is - what are are my other options?

Edited by FindLaw_AHK, 17 July 2012 - 07:55 AM.
This post has been edited to remove personal or identifying information. -Moderator


#4 LegalwriterOne

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Posted 17 July 2012 - 07:50 AM

If their not willing to sell the car to pay off the loan and/or cannot refinance in their own name, all you can do is make the payments OR pay the car off and sue them for reimbursement. Consult local counsel.

#5 pg1067

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Posted 17 July 2012 - 11:59 AM

As it concerns the lender, your only options are to pay if the borrower doesn't (and sue the borrower for reimbursement), not pay and take the hit to your credit and other consequences, or file bankruptcy.

If you have a separate agreement with the borrower that obligates the borrower to refinance the loan, then you may be able to enforce that. However, if the borrower is unable to refinance, that agreement isn't much good.

#6 dulce2

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Posted 29 August 2012 - 07:19 AM

I cant say this loud enough!! DO NOT CO-SIGN WITH ANYONE FOR ANY REASON!!!!!! As hard as they beg and all the hard luck stories the bottom line is there credit is bad for a reason and yours is good for a reason. Anyone can save up and buy a used vechicle cash if they can not then they sure wont pay for insurence and up-keep. If you truley want to help some one in this situation give them A GIFT of a thousand dollars. If you cant afford that then you cant afford to co-sign a loan!!!! Think about the change in attitude from when they wanted you to "buy them a car" and now. I bet they were easy to find before!!!! Instead buy yourself a new car not someone eles!!!!

#7 FindLaw_Amir

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Posted 30 August 2012 - 10:12 AM

Did you resolve this matter regarding the co-signature loan?
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