No, the law allows for only one garnishment action by a creditor to be in force.
The cosigner has the same legal obligations to repay the debt as does the primary borrower. If the primary borrower defaults, the lender can begin proceedings to collect the full amount owed plus applicable fees from the cosigner. A cosigner can be sued just as can the primary borrower. And if the primary borrower claims bankrutpcy, the cosigner will still get "stuck" with the debt. The credit report of the cosigner will be equally affected, either in a positive or negative way, depending upon the circumstances.
. Generally, no. A co-signer on a loan does not have to reside at the same residence as the primary borrower. Once the co-signer signs for the primary borrower; he or she is as liable as the primary borrower. It should be noted that some lenders may have their own requirement that the co-signer live at the same address as the primary borrower.
If the primary borrower defaults the cosigner can get "stuck" with a huge debt and ruined credit. A cosigner has the same legal obligation to repay a loan as does the primary borrower. In addition, a cosigner does not have property owner rights, only the debt. The real question is why would anyone agree to pay a mortgage for land they do not own. A co-signer has an equal obligation to pay the mortgage.
The debt and repossession will become part of the co-signor's credit record. The co-signer of any loan has the same financial obligations and liabilities as the primary borrower. They can be sued and have their wages garnished or bank account frozen. The co-signor has the same responsibilities as the signor. Since the cosigner generally has a better financial situation than the borrower, debt collectors tend to target the cosigner with aggressive debt collection strategies. This can include frequent telephone calls, letters, threats of legal action and damaging the cosigner's credit report as well as the borrower's.
No. No. A co-signer on a loan does not have to reside at the same residence as the primary borrower. Once the co-signer signs for the primary borrower; he or she is as liable as the primary borrower. As far as where the co-signer resides is up to the company providing the loan proceeds. Example: parent co-signing for a collge loan for their child who lives or attends school in another state.
No. A co-buyer owns part of the property, how much a portion depends on how the title is worded. A cosigner is pledging equal responsibiliy for the debt if the primary borrower defaults on the loan. Even if the primary borrower declares bankruptcy the cosigner might still be responsible for a portion or all of the debt.
# I have never had to provide a cosigner agreement to someone who is cosigning a loan. I am talking about Tx, NY. and Kentucky. If you signed the same promissory note with the other person, then you are both responsible! CORRECTION: If you are speaking of the Notice to Cosigner below: Notice to Cosigner You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. It is against the FTC rules and against the law not to provide have have a potential cosigner sign.
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.
Not unless the the money is paid back by the borrower or if it's a lease, it's until they move. Usually when the principle person defaults on a loan or rent, they come after the cosigner. So, unless the person responsible for the moneys credit goes up so they don't need a cosigner, you are responsible if they default. Never, ever, cosign for anyone, especially family. The same goes for lending money too. If you're going to "lend" money out, you mind as well expect never getting it back. This is how so many relationships are ruined.
Unfortunately yes, and not paying the debt will result in tremendous negative consequences for you. Below are a list of some problems specifically associated with co-signing a loan that becomes subject to a bankruptcy proceeding. * If the primary borrower does not pay his debt, you will have to. In some states, the creditor can come straight to you, as a cosigner, before going to the borrower. * You may also have to pay late fees or collection costs associated with a default on the loan. * The creditor can use the same collection methods against you as against the primary borrower. * If the primary borrower doesn't pay and goes into default, it will ruin your credit. * Cosigning on another person's debt may affect your own ability to receive loans. The debt is also considered yours and raises your own outstanding balance. * Cosigning a loan for a son or daughter might affect your estate or gift tax exemptions.
None. When a person cosigns any financial agreement they are entering into a legally binding contract to repay the debt if the primary borrower defaults on the loan. Although it would seem the cosigner should be allowed to be relieved of the debt responsiblity due to the actions of the primary borrower, it is unlikely a judge would take the same view. The cosigner does have legal option to recover money spent to cover the primary borrower's financial obligation. In a case such as cited it would be very difficult to file a lawsuit against the person in question. The person in possession of the vehicle however may be in violation of criminal statutes for removing the vehicle from the state if he or she did not receive prior approval from the lender.
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.
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