answersLogoWhite

0

  • Repossession
  • Loans
  • Money Management

Can the car seller be held responsible for the car loan of the buyer?

User Avatar

Wiki User

βˆ™ 2005-04-23 02:01:32

Best Answer
Copy

ABSOLUTELY NOT

2005-04-23 02:01:32
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Your Answer

Loading...

Related Questions

Is the co-buyer responsible for the loan if the buyer dies?

yes


can an REO SELLER/ BANK charge a buyer "per diem" when the buyer is using an FHA loan ?

Yes, a REO seller can charge a buyer per diem interest when the buyer is using an FHA loan. A per diem fee can be around $150 per day.


If the buyer stop making payment will the co-buyer or the buyer be responsible for the loan?

yes


Is a co-buyer responsible for paying off a loan if the buyer has no job and the vehicle was repossessed?

Yes, he or she would be equally responsible for the repayment of the loan balance.


What is a creative home loan?

When someone wants to buy a home, but they are unable to gather enough money to pay for it (cash for equity + loan proceeds), then the buyer and seller are going to have to get "creative" if they are going to be able to close the transaction. Unfortunately, getting "creative" sometimes means being subversive. A common example is the wrap-around mortgage when the seller's mortgage has a "Due On Sale" clause. With this clause, the buyer will not be allowed to assume the mortgage, but must get a new loan. The seller is supposed to pay off the old loan. But, let's say the buyer is not able to qualify for a new loan and the seller is willing to try to keep any knowledge of the sale from his lender. Let's say the seller's loan is at a low interest rate of 5% and has a current balance of $80,000. The seller might agree to sell the house to the buyer for $100,000. The seller accepts a note from the buyer (a loan) for the purchase price of $100,000 (nothing down) with an interest rate of 8%. Each month, the buyer pays the seller who in turn, sends part of the money to his mortgage company as payment on the original loan. To make sure the seller keeps making payments on his loan, the buyer often insists on making payment to an escrow company (or attorney) who will forward a portion to the original lender as a loan payment and remit the balance to the seller. The buyer gets a house he cannot otherwise obtain. The seller has actually made a loan of $20,000 to the buyer (the seller's equity in the property was loaned to the buyer, since there was no cash downpayment). But what does the seller earn on that $20,000 loan? First, he receives 8% interest on $100k each year. That's $8,000 per year. Second, he has to pay 5% on the $80k he owes. That's $4,000 per year. So, the seller is NETTING $4,000 (8 - 4 = 4) per year that he gets to keep. That is a 20% rate of return on his $20,000 loan to the buyer. That's a creative home loan. There are other ways to be creative -- such as obtaining a lease with an option to buy (where the tenant gets credit for part of the rent toward the purchase price).


What does owner will carry mean when buying a car?

I think it may mean that the seller of the vehicle will "hold the loan" or will let the buyer make payments to them and once paid in full, seller will then sign title over to buyer.


Who is responsible for the auto loan buyer or cobuyer?

If the buyer does not pay the loan, then the lender comes after the co-signer. Late payments affect both credit reports. Most recommendations are not to co-sign a loan.


Is co-signer responsible for paying for vehicle when buyer is not approved for loan?

You must have approval for a loan before anybody can be responsible for anything. If you are not approved for a loan by yourself, the lender might ask you if somebody you know will co-sign. In which case you are the primary buyer, and the co-signer is then also responsible for any payments you neglect.


What is a purchase loan?

A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank. Sometimes done when a buyer cannot qualify for a bank loan for the full amount. also called seller financing or owner financing.A purchase loan is a loan that is used to purchase something. With this in mind some common types of purchase loans include car loans as well as home loans.


What is the difference between the buyer and co-buyer?

Nothing. They are just two people saying they will be responsible for the loan. The difference is where you sign on the contract. Legally there is no difference. The co-buyer by signing is saying that they will insure the loan gets paid. If the loan does not get paid the co-buyer can have wages garnished and basically get the wrath of someone else not doing what they are supposed to.


If you are the co-buyer on the car is the loan in your name also?

IF your name is on the LOAN papers, you are the co-signor and responsible for paying the loan if the debtor doesnt.


Is the co signer the same as the co buyer?

No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay.No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay.No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay.No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay.


Your husband is not on your car lease loan will he be held responsible if you do a repo?

no


If you sell your business but part of the sale involves a carry back loan by the seller for several years is the seller responsible for paying the commission for that portion to the broker?

The seller is responsible for all of the real estate commission regardless of whether the transaction involves carrybacks. Regardless of the financing, the seller is always responsible for the realtor fees.


Is the parent responsible for 19 year olds collage education loan if the child moves out?

The parents are not responsible for an adult. If the parents co-signed the loan, they can be held responsible.


What describes an assumable mortgage?

It can be transferred from a seller to a buyer.


Can you sign car that has a loan on it to the primary buyer and not be responsible for it if he defaults?

If you are the co signer, then it is automatically your responsibility if he defaults


Can you take the vehicle from the person not paying the loan if you are the guarantor of the loan?

If there is a specific contractural agreement between seller and buyer and a lien has been officially filed against the title of the vehicle, then assuming the purchaser is in default of the loan - then yes.


Can a primary buyer have a co buyer removed from an auto loan if the co buyer was never needed to get the loan?

That will be up to the LENDER.


Can a cobuyer refinance a auto loan and remove the buyer from loan?

Buy cobuyer I wonder if you mean cosigner on a loan. If this is the case then the answer is no. As a cosigner you are simply agreeing to pay the loan if the person who took it out does not. It is in his or her name and you are responsible for it if they do not pay it.


Can you junk a vehicle without title if the loan company refuses to repossess the car?

ONLY if you can find someone to buy it without a title. NO buyer, NO seller.


If a co-buyer is on the contract and is making the payments does the co-buyer receive the credit points or does the buyer?

Both the co-buyer and the buyer get the credit and the blame if the loan is not paid. Co-signing on the loan is the same as getting the loan.


Can you buy a used car if the seller has a loan on it?

Yes, but the price would most likely be higher then average because you'd be forced to pay off the remainder of the loan and whatever the car buyer wants for it.


Does a co buyer have rights to the auto loan payments?

The lender has the right to receive all the payments. A co-buyer has no rights TO the payments.The co-buyer is equally responsible for making the payments.The lender has the right to receive all the payments. A co-buyer has no rights TO the payments.The co-buyer is equally responsible for making the payments.The lender has the right to receive all the payments. A co-buyer has no rights TO the payments.The co-buyer is equally responsible for making the payments.The lender has the right to receive all the payments. A co-buyer has no rights TO the payments.The co-buyer is equally responsible for making the payments.


Is it worth having a seller remove the above-ground pool if the buyer doesn't want to have it?

No have the buyer do it. The seller isn't responsible-house is sold as is! ;)plus what if the buyer changes their mind then he sellers property goes down in value! It may be worth it for the buyer to remove the pool versus having the seller remove it because the seller may increase the sales price of the house if they remove the pool. To increase the sales price, this would add more onto the buyer's loan for the house. More money!!!! If the pool is in good condition, the seller could include the pool in the sale. Otherwise, it needs to be removed from the property before putting the house for sale. Offer it online free to the person who comes and picks it up. Craigslist and Freecycle are good sites.