Loans

ANSWER The APR would NOT go down because the co-signer is just a safety net just in case you default on the payment. You might have to obtain credit repair services.

It would be very difficult to obtain financing of any kinds if you are "in between jobs". However, it may be possible. Contact an experienced broker in your area.

You may have paid a total of $17K but not all that money was applied to the principle so you have not paid off the loan yet. Lender will most likely sell car at auction to recover some of their losses and then you will be responsible for balance that is left. If you don't pay they will either write it off and ding your credit rating or sue you for the balance. QED.

you and the party you cosigned have to talk to who you have the note with and they should be able to help you out

Contact the bank or finance company that holds the note on this car. They can transfer the loan to you if you qualify.

Refinancing is re-assessing the terms of your current mortgage. You are capable of refinancing any loan at any time whether it is a home, auto or personal loan. A second mortgage is a mortgage in addition to your primary note. If you obtain a second mortgage you will be liable to pay two monthly mortgage payments.

Contact the lender and explain the situation. They may be able to rearrange the loan so that you can make the payments. You could also sell the car and pay off the loan. If you are upside down on the loan, ie owe more than it is worth, you may be able to sell the car, give the lender the amount it brings, and take out a personnel loan for the balance. Bottom line is do all in your power to avoid having the car repossessed. If they repo the car you will be responsible for not only the difference in what they sell the car for and the balance on the note, but also the repo fees. Your credit will also be ruined for 7 years. Don't let it happen. Talk to the lender, ASAP.

Median annual earnings of loan counselors were $32,010 in 2002. The middle 50 percent earned between $26,330 and $41,660. The lowest 10 percent earned less than $22,800, while the top 10 percent earned more than $57,400. Median annual earnings of loan officers were $43,980 in 2002. The middle 50 percent earned between $32,360 and $62,160. The lowest 10 percent earned less than $25,790, while the top 10 percent earned more than $88,450. Median annual earnings in the industries employing the largest numbers of loan officers in 2002 were: * Activities related to credit intermediation $47,240 * Management of companies and enterprises 46,420 * Nondepository credit intermediation 44,770 * Depository credit intermediation 41,450 The form of compensation for loan officers varies. Most loan officers are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes offer their loan officers free checking privileges and somewhat lower interest rates on personal loans. According to a salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, mortgage loan officers earned between $36,000 and $45,750 in 2002; consumer loan officers with 1 to 3 years of experience earned between $42,250 and $56,750; and commercial loan officers with 1 to 3 years of experience made between $48,000 and $64,500. With over 3 years of experience, commercial loan officers made between $66,000 and $92,000, and consumer loan officers earned between $55,500 and $75,750. Earnings of loan officers with graduate degrees or professional certifications were approximately 10 to 15 percent higher than these figures. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions. (The above is from the U.S. Bureau of Labor Statistics.)

Try somewhere like Equifax.com they will provide an online copy of your full credit history and "credit score" instantly for around $20 or mail you a copy within 28 days for around $8

You need to contact your Attorney General about this one. You will get the correct answer based on NY law. Read your contract it should state if there is any "linkage" between the loans.

Co-signing means that you accept 100% financial liability for the contract in question. The manner in which the contract is adhered too has equal impact on your credit.

As long as you have been in the same profession for at least two years, you can typically qualify for financing through any loan program. However, there are even loan prgorams avaialble for borrower which have recently become self-employed or have started a new carreer. These "No Doc" loan programs require no verification of the borrowers employment or income so the limited history is not a factor. Unfortunately, due to the increased risk (to the lender) for this type of financing the rates and/or points will be higher than with a traditional "Full documentation" transaction.

Yes, if both people apply for a joint loan, both credit reports will be used to determine the elgibility of the borrowers.

Actually I think that the only way it can hurt him in any ways is if you are trying to fial joint to like buy a car or a house or such.

By Adjustable Whole Life do you refer to a Universal Life policy??? When any policy is tied to interest rates (Not talking securities here) it can effect the longevity of the poilcy just like taking loans can. If the premium is adjustable and you don't pay the target premium, your policy will fall short. When you bought your policy interest rates may have been up. The recommended premium (target) may have been $75/mo but because of the interest rates or your finances at the time you may have only been paying $50/mo. You after time kept this up and adjusted your thinking to this being the required premium (Generally speaking here...this is what I see often). Now that you are older, interest rates are lower, and your mortality is higher, there is not enough cash value to draw on to offset the lower premiums you have been paying. Now the solution is...pay higher premiums to keep the policy going...or, you may be able to reduce the face to an amount that reflects the premiums you are accustomed to paying. I Strongly question the idea of buying a new policy!!!!! What reasons are given? If you do qualify, you are older now, premiums will be higher, you will need to be underwritten again and there will be another 2 year contestibility period. Is it all in your best interest or will it genertate new 1st year premiums for your agent? 4lifeguild (ignore spelling errors)

Of course. Although a consumer would not be asked to co-sign if they also needed to "build credit".Professional lenders insist on a co-signer when they have reason to believe that the primary borrower will not repay the loan. If a lender (who's business is to lend money) believes that your friend or relative is a bad credit risk, why would you jeopardize your credit to help them secure a loan.Co-signing a loan makes both parties 100% liable for the debt.

The main affect is, it will show on your debt to income ratio as a current debt, because if you are co-signing, you are saying that if she doesn't pay, then I will. So with the possibility of owing two mortgages, if you want to get your own home, you better make a lot of money. If you can only afford one mortgage, then if you sign on hers, then that will probably be the only mortgage you will be able to be on, until you get off the loan.

The financial risk for any co-signer is HUGE! Co-signing a loan makes you 100% liable for the debt. If your grandson pays the loan late, or defaults on the debt, those "bad marks" impact your credit equally. The only time a consumer buys a car is when they pay for one with cash. When a consumer obtains a car loan, they are borrowing MONEY that is secured by a car. Big difference! If something happens to that car, the lender still wants their money. This is why financers force borrowers to keep the vehicle fully insured for the term of the loan. They know that most consumers don't understand this concept and think that if the car is repossessed, or wrecked, or stolen, that they no longer have to repay the loan. This is a misconception. Lenders extend a certain amount of money, secured by the vehicle, at a specific interest rate and they want every penny of that money back. This is what you would be agreeing to, should your grandson default on this loan. If a professional lender, who makes his living by extending credit to borrowers, refuses to lend to your grandson because the risk is too high; why is the risk acceptable to you?

After the entry of the dismissal, the Chapter 13 trusee will send you a final accounting of how much was paid to each creditor.

If you mean deteriming what a payment might be for a given interest rate and a given loan term, try "Karl's Mortgage calculator", or go to the Ditech.com website where they also have a calculator that you can use for 1st or 2nd (i.e. equity loan) calculations. If you mean how do they arrive at the number they get, it is calculated using amortization schedules. (Karl's will show you the whole amortization table, and you can insert pre-payment strategies and it will tell you by how many years you can reduce the term.)

It depends on the laws in your state. What state are you in?? The previous answer was right on the money. It all depends on the state. For instance, in AZ, there is a 10 day cure period. If you don't get right with the lender in those 10 days, they can sell the vehicle. It also may depend on your contract that you signed. The state may have no cure period but your contract may say that there is a 15 day period. Check your state laws and your finance agreement.

There is no procedure for this. The mortgage must be refinanced.

Call a local attorney for state/case specific advice.

Contact the credit reporting agency

Yes if they are trying to collect what the Upside down difference was from Repo-ing it and auction off price. It should only read that it's a Debt being collected from previous car....

As long as the debtor makes payments on time, this would not reflect negatively on your co-signers credit. Co-signing will show on their credit report as debt as a co-signer guarantees repayment of the loan if the debtor defaults.

Charge Off is an accounting entry by the lender to acknowlege he lost money. It is not a Forgiveness of Debt.

DON'T BE CONFUSED - THE ONE YOU OWE MONEY TO "Charging it off" IS ONLY THEM RECORDING THAT THE DEBT THEY ARE OWED IS NOT EXPECTED TO BE PAID. It does NOT relieve your obligation to pay it, nor his right, even obligation (to investors, partners, etc) to continue to try and collect as much of it as they can. They would record whatever they do get as income, just like they recorded whatever the original deal was that you were so supposed to pay and they had to reverse by "charging it off".

The below is a full discussion, which was originally written in response to a tax question -

Explanation Charge Offs & Forgiven Debt

If what your asking is really when a company charges off an account does it get a tax benefit, below is more than everything you ever wanted to know, but feel free to ask more or challenge any of my answer.

Lets limit this to business charging off a debt that is owed to them through some type of transaction, as non business taxes are an entirely different area. And of course, like anything to do with taxes, everything is prefaced with a �generally or normally� as there are always special circumstances and exceptions.

A charge off (or write off) is the accounting process where a business acknowledges a receivable (an asset) it believes is uncollectable effectively does not exist. It is taking the cost of not collecting that receivable as a charge against current earnings. Hence the companies net current earnings is lower than they would have been and subsequently, the amount of income taxes they pay is also lower. IMPORTANT: It does not mean the debt is forgiven, just that they can�t collect it, or some portion of it. (See below).

They had an increased expense, made less money, they pay less taxes. It�s fair to say given a choice they would have preferred to have made the less net income by increasing say, salaries, medical benefits, advertising, new machinery, etc. than essentially giving away their assets/earnings to someone else for free.

Taking a $100 sale on credit, the company shows the $100 as income on its income statement when the sale is made and, as no cash was received, reflects it by establishing a $100 asset (due from customer) on its balance sheet. If the transaction is completed, as the customer pays, the balance sheet cash account is increased by the $100, and the due from customer account is decreased � no income effect (as that was recognized with the original posting).

So, say a company sold $100 in year 1, reported the income (through the income statement) and paid taxes on it and establishes an asset for the receivable. Then in year 2 finds that customer isn�t going to pay, it will have a charge of -$100 in year 2 (reducing the balance sheet asset account, with offset to the income statement), effectively lowering income and recovering the taxes it paid in year 1.

While this seems fair there are, not suprisingly, a number of accounting, especially IRS tax accounting rules, that complicate it and it is not unusual at all for a company to not receive a complete or timely benefit for all of it�s charge offs. (The tax rules for when an asset can be charged off are stricter than accounting). And for there to really be any benefit, the company must actually be making enough money on a tax basis in all those years. It must have taxable income and a tax it would have had to pay. If it was already losing money, paying little or no tax, losing more doesn�t get it more! But also at the State level where, the taxable income need is even greater, but another tax is frequently encountered. If that $100 also had say $6 sales tax collected and paid over to the State, the state makes recovering that $6 that was in reality never collected, very difficult, near impossible. (Note that the $6 is normally NOT part of the company�s income or sales but a collection in trust for the State and paid over on behalf of the customer). I think you would be hard pressed to call the above a benefit! The one not paying (who still owes and will forever owe the money), actually receives all the benefit, by basically enriching themselves through a theft. (Walking out and agreeing to pay, then not doing so is really very similar to simply walking out with out paying...it's theft by deception).

However, there is another consideration: What happens if the debt (or some portion) is forgiven?

Lets start with a basic tax concept: If you receive something of value (remember we�re talking in business, so from someone other than family), you have received a taxable income. (The one giving it rightfully has an expense). For example, remember the Oprah Winfrey thing where the audience got cars�and then found out they owed taxes on the value of the cars. In fact, when Oprah stepped up to pay the tax for them, she had to actually pay more than the tax on the car, as the money she gave them to pay the tax is also taxable - that's called a gross up.

Hand in hand with that, and the example above, if you get a loan, it is NOT taxable income. The money was exchanged for the equally valued promise to repay.

So taking the example above, if a buyer receives the $100 merchandise and gives $100 value for it, obviously nothing income taxable to the buyer. But in this case the buyer receives the $100 of value and say makes a deal in year 2 that if the $100 promise it gave is forgiven for a payment of $75 sent today (frequently offered with words like ��because it�s all I have and otherwise you ain�t getting nothing�.�), then the $25 is considered a cancellation of indebtedness. COD income is taxable to the recipient. It isn�t a loan/exchange of value anymore, it�s a gift of value, and value, as in Oprah is taxable. While no one likes to pay tax, it is the correct outcome. The advantage is the debtor doesn�t owe anything anymore�other than tax on the gift.

This COD is a very big issue in major corporation financial reorganizations. When these companies financially restructure (Chapter 11 Bankruptcy), and creditors, generally Bondholders, agree to take less than the bond was issued for�and we are talking billions of dollars here frequently, the company has COD income of the amount forgiven.