Auto Loans and Financing
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Co-signing

What rights does a cosigner have when a car is repossessed when the cosigner is the parent and the adult child missed payments?

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2017-10-10 17:14:45
2017-10-10 17:14:45

A co-signer is equally responsible for paying the debt for which they co-signed. That is the reason a lender requires a co-signer. The lender would not have loaned the funds to the primary borrower unless someone else guaranteed the loan.

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2014-11-08 20:03:23
2014-11-08 20:03:23
  • Cosigning a loan means that you are willing and able to ensure that loan payments are made in any situation in which the other party fails to pay.
  • As a cosigner you are just as responsible for the loan as your adult child. If the bank repos and then auctions the car you are responsible for any balance due and the bank will come after you not just your daughter to recover their money.
  • Any repossession can and generally will be reported on your credit reports as well as hers. Additionally, since your financial situation is likely better than your adult child's, debt collectors would generally come after you more aggressively for repayment of any deficient loan balance.
  • I would get the car from your adult child and make the payments. Have your adult child pay you directly. That way your credit is covered and it will also improve her credit.
  • Take possession of the vehicle and pay it in full. Once you own it outright, you can give it to your adult child or sell it to anyone you choose and your credit will remain intact. If the bank already repo'd it, go talk to them, pay the loan in full and transfer the title into your name.
  • Never cosign a loan for anybody for any reason unless you're willing to assume responsibility. The BLAME goes with BOTH of you. Your child for not being responsible and yourself for letting you get roped into this situation. Never cosign a loan unless you can be fully responsible for the loan just like it was your own. The principle party from a credit perspective will destroy your credit if they don't pay the loan and there is nothing you can do.
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Yes, of course your cosingers signature means something. It means that there is no way for to have been approved for what you applied for without their good credit to back you. It also means ,God knows I hope your cosigner has some sense, that your cosigner is 100% responsible for any default of restitution on your part. The cosigner is essentally applying for the very same thing you are--for you--on your behalf almost. Be good to your friend, parent, whoever has helped you and repay your loan on time.Happy holidays.

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Criminally, no. An adult, whether they're living with their parents or not, is fully responsible for them self. The eighteen-year-old, and he alone, can and will be held responsible for their own actions. In civil matters, it may depend on the circumstance. If the parent co-signed on any kind of loan or payment for the eighteen-year-old, and the eighteen-year-old does not keep up with the payments, the cosigner can be held responsible for those payments.

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By asking your bank for a statement if you made it through the bank.

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