answersLogoWhite

0

  • Personal Finance
  • Loans
  • Co-signing
  • Money Management

Can a primary signer get off the loan when the cosigner wants to take over payments?

User Avatar

Wiki User

βˆ™ 2007-01-27 06:43:47

Best Answer
Copy

Not likely, the lender will probably require you to refinance the loan in only the co-signers name.

2007-01-27 06:43:47
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Add your answer:

Earn +5 pts
Q: Can a primary signer get off the loan when the cosigner wants to take over payments?
Write your answer...
Submit

Related Questions

Does a cosigner have to have good credit?

Absolutely. The whole point to having a co-signer is the creditor wants assurance that the debt will be repaid.


What personal information is required of a cosigner for a car loan?

Name address, credit history, outstanding debts, income verification, etc. A co-signer needs to supply as much information as the primary borrower since the lender wants to make certain the loan will be repaid.Name address, credit history, outstanding debts, income verification, etc. A co-signer needs to supply as much information as the primary borrower since the lender wants to make certain the loan will be repaid.Name address, credit history, outstanding debts, income verification, etc. A co-signer needs to supply as much information as the primary borrower since the lender wants to make certain the loan will be repaid.Name address, credit history, outstanding debts, income verification, etc. A co-signer needs to supply as much information as the primary borrower since the lender wants to make certain the loan will be repaid.


How can you transfer the title to the co-signer?

Thsi depends on who is actually listed on the title alone. If the cosigner appears second or not at all on the title, then the title transfer can be done at the DMV, showing the vehicle was "sold" to the co-signer. This will update the title and registration of the vehicle. Now, if the co-signer also wants to be the sole payee on the car loan, the co-sighner would need to refinance the auto-loan in their name alone and be approved.


What legal action does the cobuyer have if the buyer doesnt pay the payments for the car loan?

Don't know of any state that allows a co-buyer. There might be. For this purpose, let's use co-signer. What legal action does the co-signer have if the buyer doesn't make the car payments? In reality, the co-signer signed as a guarantee that the payment would be made and on time on the specified date. The buyer is the one buying. That's 2 different operations. The co-signer, at last known fact, cannot take the car because he is not buying it. He's paying THE LOAN since (and we're assuming here) the buyer is not paying. In my experience, if the buyer wants to be a horse patootie, he can drive that car with a smile on his face and not make payments because the co-signer IS OBLIGATED TO MAKE THE PAYMENTS. If the co-signer does not make the payments, then HIS CREDIT IS RUINED! Never co-sign, if at all possible.


What happens to your credit if you co-sign for someone and they quit making payments?

When you co-signed you agreed to pay the loan if the primary borrower defaults. That is the only purpose of requiring a co-signer. The person who applied for the loan doesn't have a good credit record and the lender wants to make certain the loan is paid so they arrange for someone with better credit to co-sign the loan. If you don't make the payments your credit will be ruined.When you co-signed you agreed to pay the loan if the primary borrower defaults. That is the only purpose of requiring a co-signer. The person who applied for the loan doesn't have a good credit record and the lender wants to make certain the loan is paid so they arrange for someone with better credit to co-sign the loan. If you don't make the payments your credit will be ruined.When you co-signed you agreed to pay the loan if the primary borrower defaults. That is the only purpose of requiring a co-signer. The person who applied for the loan doesn't have a good credit record and the lender wants to make certain the loan is paid so they arrange for someone with better credit to co-sign the loan. If you don't make the payments your credit will be ruined.When you co-signed you agreed to pay the loan if the primary borrower defaults. That is the only purpose of requiring a co-signer. The person who applied for the loan doesn't have a good credit record and the lender wants to make certain the loan is paid so they arrange for someone with better credit to co-sign the loan. If you don't make the payments your credit will be ruined.


Will having a cosigner lower your APR or enable you to borrow more?

The lender should be looking only at your ability to repay the loan when they determine the amount they will lend, since they assume you will be making the payments. They also want to be sure the cosigner can make the payments if you don't, but they would not combine the two financial statements to determine the amount that the two of you together could afford. They may offer a slightly better interest rate, but if the lender wants you to get a cosigner, it usually means you will not get a loan without one.


You are a cosigner on a vehicle and now the primary signer wants to sell the car. If you write a notarized letter giving her permission to sell or trade in the vehicle will this remove the cosigner?

Before, or at least as part of the process of, selling the car, the original loan will need to be repaid. The lienholder will not release title to the buyer until this has happened. There's no need for any letter, notarized or otherwise. This will effectively remove you as cosigner, since that loan will no longer exist. If something other than a straightforward sale is going on, then you should contact the finance company to find out what procedure to follow to ensure that you're no longer on the loan.


If a cosigner of a car loan wants to get off the loan but it's not a good idea for the other party due to credit score can the cosigner take legal action to get off the loan?

Probably not. You, like the primary party, signed a contract as an independednt, free-thinking adult. It is assumed under the eyes of the law that you knew what your were getting into. You are as bound by contract law as the primary.


Is a cosigner still responsible if the first party filed bankruptcy but reaffirmed the car loan?

The company wants their money so if the primary doesnt pay then the cosigner must. Their is no way of getting around this. Bankruptcy should be outlawed. If you cant afford things dont take on the debt.


Can someone cosign for only a certain amount on a loan such as if the person only wants to cosign for 12k but the loan is 17k?

No. You co-sign for the note as indicated on the documents you sign. There is no half way. Beware ... When a lender asks for a co-signer, the lender knows that the co-signer will have to make at least some of the payments. This answer comes from experience.


If you filed for bankruptcy would the cosigner of your auto loan be forced to take over payment?

The answer is that the cosigner would be left responsible for taking over the payments. If the cosigner wants to maintain his or her credit rating (which is probably damaged due to your filing bankruptcy), If the consignor does not want the auto loan people to sue for any remaining balance, then he or she will need to keep making the payments. If the auto loan company sues for any remaining balance and gets a judgment, then the auto loan company will go after the assets of the consignor and or garish their earnings. attempt o seize their assets or garnish their earnings.


Does a co-signer have to have permission from the Primary Account Holder to be taken off of a car loan?

A co-signer of a car loan needs the permission of the lender to be taken off the loan. That is not likely to happen since the lender wants as many sources as possible for repayment of the loan. Each co-signer is responsible for 100% of the loan. If one doesn't pay the other will be held responsible.


If a two people signed on a car loan and the cosigner wants to take over payments can the primary signer get off the loan?

Several factors determine what a bank will & will not do concerning loans. With the current decline in vehicle values the likleyhood of being in an equity position on the vehicle is slim. Most lenders will lend a maximum amount of 115% of NADA trade value on a used vehicle. The best option here is to just let the co-buyer make the payments with a written contract between the buyer & co-buyer until the loan is paid off. When the title is received go to the DMV and have the vehicle retitled in co-buyers name only. Check with the individual lender where the vehicle is financed for their policy concerning this issue. Check with the bank the loan is with. It depaends on the the persons credit. Usaully the reason for a co-signer is because the other persons credit is not good enough to get the loan in the first place by their self.


Where does the co-owner sign if you want ownership of full title?

If the cosigner wants ownership of the property they must arrange to be listed on the certificate of title. You need to check at your state DMV to determine the process in your state.If the cosigner wants ownership of the property they must arrange to be listed on the certificate of title. You need to check at your state DMV to determine the process in your state.If the cosigner wants ownership of the property they must arrange to be listed on the certificate of title. You need to check at your state DMV to determine the process in your state.If the cosigner wants ownership of the property they must arrange to be listed on the certificate of title. You need to check at your state DMV to determine the process in your state.


What does it mean to cosign for car?

You have good credit. Your kid just graduated from high school. You gave her $500.00 for a graduation present. She just got a new job. She needs a car to get to work. She takes the money you gave her and some money she saved. She wants to use that for the down payment on a car. She has no credit. She puts the money down and you sigh the loan along with her. You cosigned the loan. She signed the loan. She will pay it. If she can not pay it, Then they will ask you for the money. If the main signer can not pay the loan, the cosigner is then responsible for the loan. Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer) who may be called primary signer). No difference. EXCEPT that the cosigner frequently does NOT have possession or legal control of any property involved in the loan, so using it (say selling it) to pay for the loan can be much more difficult, if not impossible. So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also.


Why would you need a cosigner for a loan?

There are several common reasons. One is you may be too young to have established good credit; lenders look for a strong credit history, and young people just starting their professional life may not have established their credit-worthiness yet. Another reason is you may have had problems paying bills in the past, and although now you are showing that you are reliable, the lender still wants to be certain you will repay the money-- one way to be sure is to have a co-signer, who is responsible in the event you cannot make the payments.


Does a co-signer have legal rights to a vehicle if they have been making the payments?

Depeding on how the vehicle is titled you may have legal rights to the vehicle even if you aren't making the payments. However, in order to just get it titled in your name then you will need their consent if it's currently titled in both of your names. Very simple answer to all these questions. If your name is on the title, you can have the car. If your name is on the loan, you can make the payments. WHAT if BOTH names on tittle, reg and insurance, one is making payments but other is the strong credit that got bike and wants it back


Can the primary on the cosigned loan drop the other person off the loan without refinancing if the other is buying a new car and the Primary wants to keep the other?

No. The only option from having a cosigner removed from the loan agreement is through refinancing. In some cases the lender may be agreeable to allowing a change of consigner's, but there will be additional fees charged.


Is the co-signer the same as the co-buyer?

No. A co-signer is a person who guarantees the loan and a co-buyer is a person who has equal ownership and liability. An example is when a young married couple wants to buy a car but does not have good or sufficient credit or enough collateral for the loan. They might get one of their parents to guarantee payment of the loan by becoming a co-signer. If the couple defaults on the loan, the co-signer becomes liable. In this same case, the couple as husband and wife, sign the loan (co-borrowers) and the purchase document for the car as co-buyers, sharing equally ownership and primary liability.


Does a cosigners name have to be on the deed?

A co-signer to a mortgage accepts full responsibility for the payment of the mortgage. Although it is not required for mortgage purposes that the co-signer have an interest in the property, that concept triggers another question.Why would a person who does not own real property accept the responsibility for paying for it? The bank wants a co-signer so that if the primary borrower defaults it can go after the co-signer for payment of the debt.If after being fully informed of your obligations, risks and possible consequences of co-signing you decide to co-sign a mortgage you should make certain your name is added to the title.


What can you do if you are struggling to make car payments and are 30 days behind and you did have a co-signer but you can't afford the payments anymore?

if you need the car and the money situation is temporary many companies offer payment deferment which could buy you an extra 30 days. otherwise see if the co-signer wants to take over, at least give them the option since both of your names are tied to the vehicle and a repo. will affect you both. Call the bank or finance company that is holding the note. Trust me, they want to work with you. Get the 30 day paymant deferred to the back of the note and make an arrangement. How long have you been paying the note? Based upon the number of payments left, your credit, etc. You may be able to refinance the note with another bank. I know that Capital One formerly had a program for this. Do not just sit on your hands. If you have a co-signer, the company will go after that person, as they are legally allowed to do. If you haven't yet notified your co-signer of your financial struggle, you'd better do it soon.


What if your dad co-signed your car for you then came and took it from you and changed the locks and ignition what are your legal rights?

If the co-signer had to make any payments on the vehicle, I think he has a right to take possession of it, much the same way as a repo-man. huffanpuff wants to know who is the auto registered to/ what name is on the title.


How should you handle if you the co-holder on card you never purchase anything the primary file bankrucpty and the card company wants you to pay?

As co-holder, you're partly liable for the card payments even if you didn't use it yourself.


Can you just move and leave a loan to the co-signer?

David, you can give her the car IF she wants it and will pay for it. She does NOT have to accept it. if she is wise, she WILL take it and try to sell it to get it off both your credit line. If she refuses to pay,camt sell it, it will be repoed and the lender will sue you after it sells.


What if a co signer wants to be removed from a contract of a mobile home?

You then take all the relevant documents to the Provincial Assessment Office, or in the US, to your state DMV.