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A co-signer is EQUALLY responsbile for the debt as the person he co-signed for. At the very least it will reflect on their credit. Possibly liens can be placed against them. In extreme cases, garnisheeing of wages and forced sale of their property though the last is unlikely.
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoThe remaining co-borrower must pay. Otherwise the loan will show as a default and be reported against both parties. Both will have a negative entry on their credit record.
When two people co-sign a loan they are each fully responsible for paying the loan. If one does not pay the other has to pay or the loan will go into default. In that case the lender can sue the cosigners and obtain a judgment lien that can be recorded in the land records or be used to seize property to satisfy the lien.
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Can the lender put a lien on another car if a cosigner refuses to pay another car loan?
no
What are the qualifications of a cosigner?
Normally a cosigner has to be able to pay the loan if the signer does not pay. So the cosigner should have better credit than the person seeking the loan.
If you are late on your loan payment and are a cosigner on your daughters car can they repposses the car?
If you are late on your loan payment and are a cosigner on your daughters car can they repposses the car?
Does the cosigner have to drive the car?
No, the cosigner signs on to the loan. Usually, the primary signer owns the car and drives it. The cosigner is there in case the loan goes into default and needs to be paid for. After they sign on the car does not belong to them, but the person who took out the loan.
What are the consequences of signing a car loan when the primary borrower defaults on the payments?
When the primary borrower defaults the cosigner becomes legally responsible for the loan. If the cosigner is not able to pay the loan he or she can also be subject to legal action by the lender and the cosigner's credit score will be seriously affected.
Can your cosigner refinance your car without your permission?
No. As the one who originally took out the loan, they cannot refinance your car loan without your permission. The only thing they can do (and have to do) is to pay your payments if you default on the loan.
When someone is a cosigner on the loan of your car does that mean he owns any part of it?
when you cosign on any kind of loan you dont have to pay anything unless the person you cosigned for does not pay the loan, then you are responsible for that the remaining balance on the loan
What does it mean to be a cosigner for a car?
With your good credit you sign a contract to pay off the loan if the original borrower defaults.
If the cosigner on a car loan files bankruptcy what will happen to the other persons credit?
The creditor will seek repayment of the car loan from the cosigner. As long as the cosigner pays, their credit will not be affected. However, if they are unable or unwilling to pay, the debt will be pursued like any other bad debt, and it will affect their credit rating.
If you gat a car with a cosigner and your 17 at the time can you have the car put in your name and get credit for the payments being made when you turn 18?
The terms of the loan are between the bank, and you and your cosigner. To remove the cosigner, the bank would have to agree to pay off the loan and issue a new loan in your name only. Since the value of the car has probably decreased faster than you are paying down the loan, it is unlikely that there is any credit being generated.
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.
What are the cosigner's options if the primary defaults on the loan and leaves the country?
To pay the loan.
