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Can a cosigner sue the primary borrower for the entire amount of a loan?
Wiki User
∙ 8y ago
You can sue for anything if you can find a lawyer to take the case, but collecting would be something else. You cosigned, promising the bank that you would make any payments that the borrower did not. THERE IS NO AGREEMENT THAT SAYS THE BORROWER WILL REPAY THE COSIGNER. IOW, you are SOOL.
After months of unsuccessfully trying to get the person I cosigned the loan for to pay his bill - I sued him. He got scared because he knew I would get the judgment because he agreed to pay this bill and that's why I cosigned in the first place. He knew a judgment on his credit report would cause him lots of problems. So after he received the court summons and we appeared before an arbitrator he agreed to pay an extra $125 per month to settle the loan faster in exchange for me not requesting a judgment. I also received a signed document by him and the court that if he missed even one payment again - it would go into an automatic judgment on his record for the balance due on the loan plus $500. I'm glad I didn't wait for the loan to go into default and ruin my credit before I took action.
Wiki User
∙ 8y ago
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What is the difference between loan syndication and consortium finance?
The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.
What is a co-borrower?
When two people sign a note as co-borrowers they are each responsible for payment of the outstanding debt. If one doesn't pay then the other will be responsible for the entire balance.
If you are paying interest only on a mortgage and have no equity in a home that has depreciated can you abandon the property?
Sure, if you don't mind losing your entire investment, ruining your credit rating and being hassled by creditors. Ok... enough sarcasm... maybe you need to talk to Suzie Orman. Yes, but the borrower will still be responsible for any deficiency between the loan balance and the amount that the lender receives in the sale of the property. In addition to any deficiency that may result, the borrower is also responsible for all other costs incurred by the lender related to the foreclosure process.
Can a young person cosign a loan?
Yes, someone 18 or over can cosign on a loan. But you are legally liable for the entire amount if the borrower fails to repay---and it can ruin your own credit!! Think long and hard before doing this for anyone. I can't imagine doing this for anyone but a close relative...and even then there is no guarantee you won't end up paying the entire amount. Past the need for being of legal age to contract, BY FEDERAL LAW AGE CANNOT BE A CONSIDERATION for granting credit. (That is one reason why people can get a mortgage at an advanced age, even though they will likely not live to see the loan through). The credit scores are not combined or added to get to the needed level for a loan, in fact, just the need for a cosigner may raise the level required by the lender to approve a loan. But the real consideration is: You are certainly responsible for the actions of primary to the extent of the loan....and after that, it would be situational on what other liability could extend to you - but certainly situations no one would want to be in! A cosigner is only needed because the primary doesn't have adequate credit rating/history for the needed loan. Hence, the cosigner needs to have credit good enough to qualify for the loan, and secure enough that they can risk much of what they have historically established for likely no real benefit - on someone others won't risk anything for even with a possible very good business gain. Understand, being a cosigner is essentially the exact same as getting a loan - the cosigner is just as liable as if he got the loan on his own..in fact he needs to be more responsible. He now has to take on the obligations of the primary too, if needed, likely without the control, posession or benefit of what was purchased. Which is to say, if someone buys something for themselves, on their own credit, and then loses their job (or whatever) and has problems paying, they can sell the item and pay off (all/much of) the obligation. For many reasons, a cosigner may not be able to. And let me be clear, it is frequently shown that people who are irresponsible about their own credit (regardless of why it got that way) are even more irresponsible about others credit and obligations -- and this extends to obligations like those that come with owning/maintaining things. Things that may have your name connected to them. Sure you can cosign a loan if your ready to ruin your life at an early age. Remember relationships with people whether family or not tend to change. There are certain criteria that you must meet. You must be 18 or older, you must have an acceptable credit background (no late payments, no high borrowing) and you must meet the acceptable amount of income which can vary depending on the bank and the type of loan. You won't find many young adults that have these, so it's generally not a good idea. Furthermore, someone older may have a better established credit history, which would lower the APR on the loan, lowering the payments as well.
If you cosigned on a car loan and the other person filed chapter 13 but is paying on the loan how should it be reported on your credit?
Just keep in touch with the lending institution to make sure nothing negative rubs off on your credit. A good relationship with the lending institution will be quite helpful in the long run. Recognize that if the primary borrower files bankruptcy, some lending contracts can be called in requiring that the entire amount be paid in full. If that occurs, make sure you keep in touch with the lending institution and let them know that you'll either pay it off or refinance.
Can the cosigner for a car get off the lease and do they have rights to sell the car?
No one is released from contract unless the lender has some mitigating reason to allow it. This is usually death of a borrower. Other than that, the only legal way to "get off of a lease" is to pay the loan off. In most circumstances, but check your state law, the cosigner has the same rights and responsibilities as the primary signer. The lender is not going to referee your domestic disputes. Probably best to consult a contract lawyer. A co-signer has no legal rights to a vehicle unless his or her name is on the title. The cosigner is responsible for the entire amount of the loan if the primary borrower defaults; and cannot be removed from the lending agreement until the loan is paid in full or is refinanced without said cosigner being a participant.
If the primary owner of a car files for bankruptcy and it is discharged and the car is back with the company will the co-signer be liable for the payment?
The cosigner will be the person who will be held responsible for paying any deficiency depending upon when the BK was filed. If the BK was filed under the new bankruptcy reform laws the cosigner can be held responsible for the entire amount of the loan.
If you are a cosigner for your son's car loan which is at the same bank where your account is is it legal for the bank to take his missed payment out of your account without any notice?
Yes. When a loan is held at the same bank where the borrower or cosigner have accounts the lending agreement will include a "set off" clause which allows them to legally remove the amount owed for the loan payment or in some cases of default the entire amount of the loan (or account). Actually, this is a favor. The missed payment will not affect your credit score. This puts the issue back in your court. If your son cannot pay for the car, then you may need to repossess the vehicle.
What is the difference between loan syndication and consortium finance?
The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.
Does a cosigner for a contract on an apartment share in the liability and if so can one cover the cosigner's liability with tenants insurance?
Yes the co signer is responsible for the entire terms and requirement on the lease just like the primary renter is. NO renters insurance cover the contents of the apartment and in case you cause a flood to the unit below and items of that nature. There is no insurance for the co signer
If your car is repossessed in Illinois and the lender wants full payment can you file for bankruptcy within a certain amount of days so that your able to keep your car?
Bankruptcy does not prevent a vehicle from being repossessed. If the debtor/borrower wants to keep the vehicle they must reaffirm the loan with the lender. Furthermore, new bankruptcy laws require the borrower to repay the entire amount of the loan and applicable fees rather than the discrepancy between the loan and the amount recovered in the sale of the vehicle.
How long does it take for a car to be repossessed after the request was made to repossess it?
The time frame depends upon the lender. Regardless of whether the repossession is voluntarily done by the borrower or a forced repossession by the lender the consequences remain the same. The borrower will be responsible for any deficiency between the amount that the repossessed vehicle is sold for at public auction and the remaining balance on the loan agreement including added fees and penalties. The respossession will also remain on the borrower's credit report for the required 7 years. Be advised, a lender has no legal obligation to recover the vehicle but can instead file a lawsuit against the borrower for the entire amount of the loan plus legal and other associated costs.
What are the legal rights if someone co signs for a car and dies before the note is paid in full?
== == * Many people do not realize that by co-signing you are also a borrower on the loan; so even though the other borrower (co-borrower) may have died, you are now solely responsible for repayment of the debt. == == * If the note is secured by a mortgage on real estate that the borrower owned, the borrower's estate may have an interest in the property that can be liquidated to pay off the loan. Life insurance may also help protect a co-signer from bearing the entire burden in a situation like this.
If a car is reaffirmed and the secured to lender amount is 7500 and 3086 is unsecured is the secured paid under bankruptcy or owed by the buyer?
Reaffirmation of a secured loan means the borrower is responsible for repaying the entire debt. Not certain what "3086 is unsecured" means.
Are settlement charges to borrower a tax deduction?
On settlement statement from HUD there is a settlement charge. Is this entire charge a tax deduction?
What is the dry-gum method of making an emulsion?
The primary emulsion is formed by mixing the entire amount of oil with the gum, adding the water required for the primary emulsion all at once and mixing vigorously until a thick and sticky emulsion results.
If a car is cleared in bankruptcy and the car does not start do you have to fix it before they come pick it up?
No, but most lending contracts stipulate that secured property must be kept in the same or reasonably acceptable condition as it was when the borrower took possession. Therefore it is likely the lender will have the car repaired and add the costs to be paid by the borrower. New bankruptcy laws now allow a lender to recover the entire amount of the loan plus applicable costs and legal fees, rather than only the resale deficiency amount.
