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Is a cosigner responsible for a debt if the signer has missed more than three payments?
Wiki User
∙ 11y ago
When you co-sign a loan, you are promising to pay off the loan in the event the primary borrower isn't able to.
When you co-sign a loan, that loan appears on your own credit history too. (As such, it may limit your own ability to get a loan for yourself. For example, while you may co-sign a loan for a friend's car, you may not be able to get a loan for your own car afterwards. )
So, YES, as the co-signer you will be responsible for any missed payments by the primary borrower. After three missed payments the bank may not pursue you right away, they may continue attempting to get a payment from the primary borrower. However, some banks in some states contact the co-signer after only the first missed payment. While the time period or the bank's exact process may vary, if the primary borrower is missing payments, then it's only a matter of time before the bank does require you to pay.
Several studies I have read show that close to 75% of co-signed loans go into default at some point and end up being paid by the co-signer. After all, that is exactly what you are promising to do when you sign on the dotted line.
Good luck!
Wiki User
∙ 11y ago
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If a parent cosigns on a car loan with hisher child and the child does not make payments can the stepparent be held responsible or have their credit rating impacted if the payments are not made?
The cosigner is responsible for the loan and payments if the signer does not pay or keep up the payments. Your credit rating can be affected.
What happens if cosigner stops making payments?
The other signer must make the payments or the loan will go into default, the property will be taken and your credit will be ruined.
Can a person with bad credit get a loan with a cosigner with good credit?
Possibly. However, the cosigner needs to understand all the implications should the one needing the cosign on the load default on payments. If the primary borrower doesn't pay the co-signer will be held personally responsible for paying the loan in full. That's what they agree to when they sign as co-signer.
Whose credit score is used when you cosign for a loan?
The cosigner's credit score is used. They are the one responsible if the primary signer defaults on payment. Both credits are ruined if the car payment is missed. Be very careful of who you sign for!
Is a cosigner responsible to pay credit card debt?
As long as you are a cosignor you are responsible to pay if he doesn't. Sorry, but the answer is yes. As a co-signer, you are stuck.
How many payments missed on bank loan before calling co signer?
It depends on the bank but generally one missed payment is enough to call the cosigner
If im making payments on your carand you have a co-signer when you pay the car off can the co-signer take the car?
No. A cosigner is basically a "lender of money." The cosigner is actually taking out the loan and is responsible for paying that debt off should the person the loan is for defaults. If you haven't missed any payments (more than two) and have paid the debt off then the car is yours to do as you want with it. Marcy
Can you protect yourself from being liable if you are a co signer?
No, that's the point of being a co-signer. Your role is to make sure the payments are made. If the primary person on the loan cannot make the payments, the co-signer is responsible for covering the payments. If a cosigner was not held responsible for the loan, it wouldn't make much sense to even have a co-signer.
What can a cosigner do after a car is repossessed Can they sue the primary signer?
Seems pointless to even consider. If the primary signer didn't have enough funds to make the car payments, they probably will not have enough funds to pay any lawsuit you charge them with. Fact is, if the primary signer defaulted on payments, then the cosigner would be responsible for making them - If repossession occured, then it was due to the fault of the cosigner .. can't sue yourself.
Cosigner repo a vehicle?
If you are a co-signer of a repossesion, and the primary borrower has not made an attempt to make their payments then you are fully responsible for this debt.
Is the surviving spouse responsible for outstanding debt on the voluntary repossession of a vehicle when they are a cosigner on the loan?
If there are payments outstanding, you, the co-signer, are responsible. That's the point of being a co-signer; you agree to pay the debt if the primary cannot.
If a parent cosigns on a car loan with hisher child and the child does not make payments can the stepparent be held responsible or have their credit rating impacted if the payments are not made?
The cosigner is responsible for the loan and payments if the signer does not pay or keep up the payments. Your credit rating can be affected.
What if the primary borrower files bankruptcy is the cosigner still responsible for making payments on the vehicle Can the co-signer take their name off the vehicle?
A Co-signer is always responsible for the item unless the primary borrower refinances and removes the co-signer. Unfortunately if the primary borrower filed bankrupcy it doesn't seem likely they will be able to refinance. Yes. Cosigner means that if for ANY reason the main borrower cannot pay, cosigner will be responsible to pay.
Is a cosigner responsible for damage done by the tenant?
Yes, the co-signer is responsible.
Can the lender take to me to court if I am just a cosigner for my friend and he could not pay the remainder of his car loan?
Yes. That is the job of a co-signer, to make sure the signer makes the payments or to make the payments if the signer cannot.
Can a cosigner have their name removed from a loan if the co-signer is incarcerated?
No. The co-signer would be responsible for paying the loan.No. The co-signer would be responsible for paying the loan.No. The co-signer would be responsible for paying the loan.No. The co-signer would be responsible for paying the loan.
Who is responsible in Florida for rent- signer or cosigner?
Both are equally responsible. If one doesn't pay the other will be responsible. That is what "co-signing" is all about. The co-signer guarantees the rent will be paid.
