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The usual legal recourse for the cosigner when the person named as the primary on a loan has defaulted, is to make the payments on the loan. Then, the cosigner can take the person who defaulted to court to try and recoup some of the money they are out. If the loan was for a car, some states allow the cosigner to take possession of the car and sell it to recoup losses also.

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โˆ™ 2014-10-07 01:37:05
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Q: What legal recourse is there for the cosigner when the person that was cosigned for has defaulted on the loan?
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Related questions

How can you get out of cosigner even through you already cosigned?

Pay the loan off and then collect payments from the person you cosigned for.


What is cosigned?

A cosigner is the person who agrees to pay off the full balance of the loan if the primary borrower fails to pay. A cosigner signs the loan documents and guarantees payment of the loan even if they have no ownership in the property covered by the loan.


If you cosign an auto loan for someone and they refinance in one year and remove you from the loan how will that affect your credit assuming all payments are made on time?

The cosigner's credit isn't affected one ioto unless the person who was responsible for the loan payments defaulted, then and if the cosigner also defaulted. In other words, just being a cosigner does not affect ones credit ratings.


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


If a person cosigns on a vehicle loan and is listed as the primary buyer on the title and the person they cosigned for has refused to make any payments can the the cosigner regain ownership of the car?

If a person's name is listed on a title, that person owns the car. If a person merely cosigned the note, that person's name will not be on the title. If you own the car, you certainly can take physical possession of it.


If the person you cosigned for refuses to pay on the car loan after a year and a half can the cosigner take over payments and get possession of the car?

Only if they are a joint title holder of the vehicle.


How can you be a cosigner if the title is in the name of the person you cosigned for?

Many people cosign a loan for property they don't own. Many are uninformed of the consequences of cosigning. They don't realize they are agreeing to be completely responsible for a loan for property that belongs to someone else. If the primary borrower defaults on the loan and the cosigner must make the payments, the cosigner has no automatic right to the property.


How can you sue the person you cosigned for?

if you are from 'merica


If a person co-signed for another's car will the co-signer be taken if they file for bankruptcy?

Yes! The whole point of cosigning a loan, from the lender's perspective, is that they have 2 people on the hook for the loan in the event it goes sour. If the person stops making payments (bankruptcy or not), they will come after the cosigner, making the cosigner wish he/she had never, ever cosigned.


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 happens if you were a cosigner on an auto loan but now your credit is terrible and you are in a credit consolidation program?

As far as the auto loan you cosigned for, nothing will happen as long as the person who actually borrowed the money makes the payments on time.


Your son in law cosigned on a car loan the person has not made regular payments now this person plans on leaving the state for good can cosigner demand car remains here where he is he has helped out?

Sadly, no. Cosigning essentially affords no rights, only obligations.

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