The co-signer was notified when the original loan documents were signed. Co-signing a loan makes both parties 100% liable for any unpaid balance. Both parties know the money is due and are expected to understand the terms of the loan before they sign. Lenders don't care about the specifics of where the payment comes from (as in; "He always made the payments before the repossession") They have no obligation to further notify them upon default.
With your good credit you sign a contract to pay off the loan if the original borrower defaults.
Yes. If the original borrower defaults, and the cosigner is unable to take over the debt.
You may be held responsible for the judgment if the original borrower fails to pay. When you cosigned for the loan you were agreeing to pay it if the borrower defaulted.
untill its paid off * The other option is for the primary borrower to have the loan refinanced without the participation of the original cosigner.
Since your ex-fiance cosigned on the loan, they are just as much obligated to the contract as you are. The only way they could get their name "off the loan" was, as you said, for the original borrower to obtain a new loan, in order pay off the original obligation. If this is not possible, then she is locked into the original contract.
A cosigner cannot be removed from the debt obligation except by a refinancing of the loan without the original cosigner's participation.
If you need a cosigner they must sign because a co-signer is a person who accepts responsibility for repayment of a loan, credit card or other debt along with the original borrower. However, if the institution giving you the new loan doesn't require a cosigner, you don't need to have the cosigner on your original loan sign anything.
No. Once a cosigner has signed the contract the only way they can be removed from the responsibility is a new agreement being made without the assistance of the original cosigner.
Only one way, have the borrower consolidate the loans without you being a cosigner. Then the original loans are paid off, and a new loan is made in only the borrowers name.
The creditor would likely claim the cosigner is still responsible, but unless it is in the original agreement that such increases are part of the contract the cosigner could make a case for being relieved of the responsibility or only being responsible for the origninally quoted amount.
Absolutely ! That's the whole point of someone co-signing the agreement. If the original person defaults on payments, the co-signer becomes liable !
Well if the original person that you co-signed with defaults on the payments and you are stuck with the payments, technically it is your vehicle and you can take the person to court and take control of the vehicle.
Yes, They can because that means that the primary borrower has failed to meet the requirements of the lender by maintaining coverage on the car. You are already in Default and subject to Repossession by not having the vehicle insured. This failure also increases the risk to the cosigner who is a guarantor on the note. If they decide to Repossess the vehicle and call in the note, your cosigner can be sued and will be held jointly and separately liable for the entirety of original note he cosigned as well as any new charges that have been added due to the primary borrowers breech of contract.A co signer can take charge of the car if the person they cosigned for is not able or does not do what they agreed to. When a financial institution takes out insurance on the car it is to solely keep the institution from being sued, it is not to fix or cover the borrower in anyway, but the borrower will have to pay for the insurance that the financial institution takes out, they usually put it onto the end of the note. Best to keep insurance on the car.
No, the refinancing without the consent or knowledge of the original cosigner created a breach of the original lending agreement and the cosigner is no longer legally obligated for the debt.
Check the wording of the loan documents (you should have gotten a copy), and/or check with the lender, but probably not. You signed as being co-responsible for the loan - the lender accepted your assurance - now you are as responsible for the loan as the borrower. If fact, you are the co-borrower. If the original borrower defaults and you become responsble for the paymetns, your complaint is with the person you co-signed for.
Nothing. The only option for being remove as a cosigner is to have the original loan refinanced without the cosigner participating.
NO! A co-signer is someone who says they will be responsible for the debt, if the original borrower defaults. They have no right(s) legally or morally to equity or ownership in the property.
Yes you are still responsible, especially if you didnt put it in your Bankruptcy, Any obligation you dont include you are still responsible for
The cosigner of the loan owns 1/2 of the property if they are on the title.
The borrower and the lender.
a cosigner is someone that also signs a note, meaning that if the original signer dose not pay the obligation the second signer or cosigner must pay. It means, if the person getting the loan does not pay it off, the cosigner is responsible for paying the loan off.
The cosigner can be held responsible for the loan if the original signer does not repay. Thus, the creditor has another means of access to the money, similar to collateral, and thus the presence of a cosigner lowers the interest rate.
You need to discuss this situation with the original lender.
Yes because they are dually responsible for the car's payments. The loan also likely depended on their credit or income in order to purchase the vehicle; therefore, they have not only cosigned on the loan, they have co-purchased the vehicle. Imho, No ... makes no sense, especially if nothing has been paid by the co-signer. Besides, the interest on auto loans is not tax deductible. I was a co-signer on my sons car and never had to report anything on my taxes. The co-signer is only responsible for the loan in case the original signer defaults.
Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.