Loans

No. You as the co-signer only agreed to be responsible for the amount that was borrowed to buy the car. Sounds as if your son has got himself into a heap of trouble. Here is the "rub" however. I assume he is not financially sound. Obvioiusly the car can't be repo'ed. Therefore you probably be stuck with the balance of the loan.

Above is wrong about a zillion ways!

Courts are holding that the co-signer is responsible for all aspects of the property, including liability for what it does. It makes no difference if what the responder is saying is in the loan agreement (and I have never, ever seen it myself), as the injured party wasn't a part of that agreement and the law certainly allows him to hold anyone with an interest in the property responsible.

In fact, a number of recent cases have even held that the bank making the loan is responsible.

The rest of his comments are almost foolish beyond comment - secured property must be insured, it can be repoe'd and the insurance proceeds taken, etc., etc. Yes, the co-signer remains responsible.

Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer (who may be called primary signer). No difference. That is the whole point of a lender requiring a co-signer! It is because the primary applicant doesn't qualify on their own creditability (for whatever reason) an somebody with better (frequently MUCH better credit) is needed for the loan to be made. (It makes no difference if the other person is related, or not, or working, or not, or this or that - ONLY that they have the needed credit rating to be approved for a loan on their own record. They are in fact getting a loan).

EXCEPT a big difference and one of many reasons to NOT be one, is that the cosigner frequently does NOT have possession or legal control of any property involved in the loan, so using it (say selling it) to pay for the loan can be much more difficult, if not impossible. Add that to a credit professional at a lender is saying the primary does NOT qualify and it is very risky that the loan will be repaid and you see why so many keep saying - NEVER cosign for a loan.

So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also.

When someone dies, the estate becomes responsible for resolving all affairs, like loans. They must use assets to pay off debts, (before anyone else gets anything). If there aren't enough to pay off the loan, then the co-signer (if there is one) is responsible.

Creditors/lenders will attempt almost anything to collect a debt. It is unlikely that a lender could place a claim against a deceased cosigner's estate and be awarded a judgment. But, there are no certainties in the murky creditor vs. debtor arena.

The lender requires that anyone whose name is on the deed also sign the loan and mortgage papers, but a co-signer does not necessarily have to be an owner on the deed.

If you do not own the property you must ask yourself who you would promise to pay a mortgage on land you do not own. Keep in mind that if the owner of the property doesn't pay the mortgage you will be held responsible for paying it even though you don't own the property. You need to ask yourself if you want to be in that precarious position. If the owner defaults your credit will be ruined as well.

One has nothing to do with the other. The lender doesn't care if you have a license, he wants a cosigner because you don't have a good credit record.

Just getting a DL says you are not quite old enough to legally borrow money unless you have COLLATERAL.

depends on who the lender is and how you pay it off. with most lenders(sub prime) you can get the loan anyway if you pay more down.

Perhaps I am not reading your posting correctly, but... As a minor you cannot enter into a (legal) contractual agreement. And you most assuredly would not be accepted as a cosigner for any type loan.

Yes! I was 20 when my dad co-signed for me on a used car loan. After 3 days of "searching" for a bank that would approve us, we ended up with 21.85%! Im refiancing at the 1 year anniversary.

If you are a minor, you cannot LEGALLY cosign or sign any loan/contractual agreement.

Nope, no way, abolutely not.

YES, contact the lender ASAP and work it out.

It depends on whether your name is on the title as co-owner. If it is, then you have equal rights of possession. If NOT on the title, you have the right to KEEP ON PAYING to protect your good credit. Have fun

read the contract that you co-signed. It usually stipulates whether the collateral can or cant be rented. If it says NO, then you have the option of cautioning the co-signor about it and then informing the Lender that the contract is in DEFAULT.

Frank, that will be up to the LENDER. If you approach them right it might be possible. It will help if the debtor has NOT messed up their credit in the 48 month period. Call the lender and ask.

If the signature was not only forged but done without the knowledge of the person, the party involve has a bigger problem than a "repo". Be that as it may, the agreement was made fraudulently and the lender has the right to reposession and recovery of expenses, by whatever means necessary.

Call the DMV in your state and ask.

Absolutely not! When you co-sign it is no different than if you took out the loan and you are 100% responsible for it. If the person you co-signed for decides not to keep the payments up you are 100% responsible for paying that loan off. They have no right to get any information about any loans you may have, interest bearing bonds or savings accounts. If the co-signer is getting this information from your bank then you need to see your banking institution as the bank is solely responsible for this error. Marcy

The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)

The loan criteria will depend on the BEST CR of either signor.

When applying for a joint account regardless of the financial transaction might be, the lender will pull both credit reports and act accordingly to their established lending procedures. They do not pick the best credit history when making a decision on the lending terms. They use the 3 C's Credit capacity (the ability to pay), character (good credit history) and collateral, (the value of the property).

Yes. If the original borrower defaults, and the cosigner is unable to take over the debt.

First off if your credit is good there is no reason you should have to pay high interest on any loan. If your son or daughter's auto insurance is clean then all you have to do is go down with them and foot the bill for the insurance on the auto. If you have poor credit and need to pay high interest I wouldn't do it! These institutions that promise you the sun, moon and stars and are lenders of money to the people will poor credit are scavangers and it's best to stay away from them. Their interest is so high it will take you forever to pay off the loan and many hope you won't so they can seize the vehicle and re-sell it. The best thing to do (more parents should do it) is the old ways like when I was growing up. I went out and worked as a Candy Striper in a hospital, saved my money and not only bought a second-hand car and paid for my insurance, but also went to driving school to learn the correct way of driving. Let your son or daughter work for it and they will appreciate it more. Good luck Marcy

Actually, it is possible. If you have the adult cosign the loan for you and you never miss a payment, including making them on time, you will be on your way already to building a credit history, even though you're under 18. Once you hit 18, you should have a good credit score and you could have the auto loan be refinanced in your name without a cosigner.

Your income will be taken into consideration but depending on the amount of the loan, you won't have to make "3000-4000" a month, that is, if the loan is going to be $300 a month and if you make $1200-$1500 and you show you have little expenses, it could work and the dealership will be able to get the car refinanced in your name.

No. Why would the lender allow that?

Lender's require co-signers so they can go after 2 people instead of 1 for the same debt.

If they thought the primary borrower credit worthy, there would be no need to co-sign.

Cosigning is usually a really bad idea.

By being a co-signer you become a co-debtor. Therefore if the primary borrower defaults it can reflect on your credit report. There isn't much you can do about it, except try writing a dispute letter, that's a longshot.

Usually all monies of the deceased are frozen for a period of time, then Probate takes place. This means that all monies owing (bills, loans, etc.) are first taken off the Estate. In the case of co-signing the banks should be able to give you more information. Either the person that the deceased co-signed for continues to pay the Estate money owing, or if they have stopped paying on the loan then the loan is a debt and will be taken out of the deceased Estate. No one should ever co-sign (not even to a relative or close family) because the co-signer has total responsibility for paying that loan off. Good luck Marcy

Not really because the money is technically yours. However, if you are one of the good guys you should, in good faith, contact the co-signer, both of you go to the banking institution you have the loan with and go over the contract. Make the co-signer part of this. Legally, you don't have too, but if you are trustworthy why wouldn't you?

Marcy

I agree with Marcy that if you are trustworthy and have been making all of the payments without help from the co-borrower why wouldn't you include them in the sale?

Another thought to keep in mind though is if the co-signer or co-borrower is on the Warranty Deed, you would have to have their signature to sell.

yes