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What happens when you are a co-owner of a vehicle that was used as collateral for a loan by one of the parties and also had a co-signer?
Wiki User
∙ 19y ago
""co-owner of a vehicle"" means you are listed on the TITLE and just that. ""collateral for a loan by one of the parties and also had a co-signer"" IF you are not on the loan, then you are not responsible for paying it. The signor and co-signor will have to pay the loan. However, IF you want/need the car, you may wind up paying the loan just to get the car. Otherwise, you lost your car if it gets repoed.
Wiki User
∙ 19y ago
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What happens when two secured parties claim security interests in the same collateral?
When there are two secured parties claiming security interest in the same collateral, the creditor that is perfected (having filed a financing statement) will have priority over the interests of an unsecured creditor or unperfected secured party
What is a Collateral Contract?
A collateral contract is a contract which assigns the rights and/or obligations of an existing contract to a third party. Due to the doctrine of "privacy of contract" only those parties mentioned in a contract have rights and obligations and it is illegal to assign these rights and obligations to third parties without the consent of the other parties to the main contract. Collateral contracts overcome the privacy of contract doctrine. Collateral contracts are used in the construction industry to make a direct contractual relationship between clients and sub-contractors. In the collateral contract the client will promise to pay the sub-contractor for the works that the main contractor promised the client to undertake. This collateral contract comes in handy when the main contractor goes insolvent or has late payments or, more importantly, when the subcontractor's performance is substandard.
Can a cosigner on a car loan sell the car without approval from the other?
No, both parties would have to be in agreement and sign off to sell or trade the vehicle.
Who pays for a car loan in Michigan if you're the cosigner and the primary stops paying?
The lending institution doesn't really care, they'll sue BOTh parties to get their money.
Your debt to income ratio is too high will having a co-signer improve this ratio for a mortgage?
It can as long as the cosigner doesn't have a lot of debt.The lender will add the income and debts of all parties on the loan application to calculate the total debt to income ratio.
What happens when two secured parties claim security interests in the same collateral?
When there are two secured parties claiming security interest in the same collateral, the creditor that is perfected (having filed a financing statement) will have priority over the interests of an unsecured creditor or unperfected secured party
If you get a cosigner when purchasing a car will it show up in your credit report or the cosigner's credit report?
It will appear on the CR of both parties.
Is contract legal if only has a cosigner?
no...only two parties are required to make a contract, a cosigner is only required in special cases.
If someone purchases a vehicle with a cosigner and only one party is making payments who has legal ownership if both parties are on the car registration?
most of the time both parties are the legal owners
What is a Collateral Contract?
A collateral contract is a contract which assigns the rights and/or obligations of an existing contract to a third party. Due to the doctrine of "privacy of contract" only those parties mentioned in a contract have rights and obligations and it is illegal to assign these rights and obligations to third parties without the consent of the other parties to the main contract. Collateral contracts overcome the privacy of contract doctrine. Collateral contracts are used in the construction industry to make a direct contractual relationship between clients and sub-contractors. In the collateral contract the client will promise to pay the sub-contractor for the works that the main contractor promised the client to undertake. This collateral contract comes in handy when the main contractor goes insolvent or has late payments or, more importantly, when the subcontractor's performance is substandard.
Who's credit is affected if a cosigner is bankrupt and the loan is defaulted?
Both parties on the loan. Co-signer and other person they co-signed for
Can the new loan company force the cosigner to resign a new contract?
No, you have a contract and the only way to change it is for both parties to agree to the change.
Who's credit rating is affected if a vehicle that was leased with a cosigner is reposessed?
Both parties social securities #'s are sent to collections for the amount due.
Can a cosigner on a car loan sell the car without approval from the other?
No, both parties would have to be in agreement and sign off to sell or trade the vehicle.
Who pays for a car loan in Michigan if you're the cosigner and the primary stops paying?
The lending institution doesn't really care, they'll sue BOTh parties to get their money.
What happens after presenting an answer to a complaint?
The parties engage in discovery.
Can someone garnish a cosigner for a car and garnish the primary also?
In the State of Texas, the answer would be "YES" as both parties signed for the car loan and both are responsible for the balance due. I was the primary signor but the cosigner had the car and was making the payments. Then she stopped making payments after owning the car for 3 years and the car was repossessed.
