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When a car is repossessed voluntarily will the lender still try to go after the cosigner first to collect the rest of what is owed on the car?

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2004-03-28 20:30:59
2004-03-28 20:30:59

Its NOT a matter of first or second, its who has the most assets that can pay. If the buyer doesnt pay, they will be on the cosignors steps the next morning. Vol or Invol, they want their money.

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NOT unless the payments are delinquent and the cosingnor has POSSESSION of the boat. Call the Lender and work it out.

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Yes. That is the point of the lender asking for a cosigner. The cosigner will have a repossession showing on their credit as well as the primary lender.

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Whether a repossession is done "voluntarily" by the primary or through the action of the lender, the primary borrower and the cosigner are still legally responsible for all the terms of the lending agreement. The affect the repossession has on the cosigner's credit history will depend upon the actions of the lender to recover the debt owed.

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No, the cosigner may be the first one the lender attempts to collect from if the primary borrower defaults. That will probably be the only "warning" one receives.

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you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.

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A lender can't garnish wages; that has to be done by court order. That can be accomplished, but usually only after the lender has made the cosigner responsible for the debt and failed to collect. After all, that's the responsibility of being the cosigner -- to provide payment should the primary borrower fail to pay.

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IF the Lender agrees to it, yes. IF it gets the lender money, they will likely agree.

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NO, not unless he co-signor files B/K also. But do be sure to tell your B/K attorney that there is a co-signor.

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The cosigner was probably "notified" that any funds held by the lender would be attached at the time the loan was signed. In order to garnish wages or place a lien on other property, the lender would have to go to court and obtain a judgment, in which case the cosigner would have received a summons from the court.

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You need to give the car to the lender - if they are too far away then you need to call them and tell them where it is and ask them how they want to get it.

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No. The only obligation the cosigner has is to the lender.

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Yes! It will still be listed on your credit report as a voluntary return and you will still be responsible for the cost

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Your car was probably repossessed by the lender who owns the car until you pay for it. Call your lender and they will be able to tell you how to locate your repossessed car.

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The person who has the car calls the lender and tells them where to pick it up. the lender might say"just drop it off at XYZ dealership"....or they might send someone to your home to get it.

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That is up to the lender.That is up to the lender.That is up to the lender.That is up to the lender.

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In MOST cases, YES. PS. Its not the "value claimed", its the diiference between what you owe and what the lender sells it for.

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A cosigner signs the debt agreement and the lender can demand payment from both the debtor and the cosigner. A guarantor does not sign and the lender needs to go through the debtor before demanding payment from a guarantor.

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Same thing that happens to the buyer. Lender persues their legal options to collect the balance due.

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No. When a vehicle is repossessed either voluntarily or by the lender, it must be sold at public auction for the fair market value or as close to that amount as possible. Any deficiency between the sale price and the loan balance will be the responsibility of the primary borrower and/or cosigner.

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YES you can. Just notify the lender where you dropped it off. No need to let it sit at a dealership for 2-3 months doing nothing waiting for the lender to locate it. That will save you a lot of phone calls from the lender also.

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Yes. But for now the lender has you and will get their money from you as they would the primary borrower. Cosigning is a really, really bad idea. At least for the cosigner. Everyone else seems to benefit.

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You are lucky. If you cannot make the payments contact the lender and try and work something out. If not voluntarily turn the car in yourself. You will save yourself the repossession fees.

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Because the cosigner guaranteed the to pay the loan if you do not. You fail to make a payment and the lender will be looking at the cosigner for the payment. You not only have an obligation to the lender who lent you the money but to the cosigner who also signed his name to the loan agreement.

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a lender can do as he/she pleases with the vehicle after 31 days...in the state of Alabama


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