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324

That "something" you are signing means you are liable for the mortgage payments - yes, all of them - if he can't or won't pay at any point. The limit on what the bank will lend him based on his salary is there for a reason - they don't expect him to be able to keep up repayments if they lend him more (or more precisely, there's a big risk that he ...


183

What are the risks, if any The risks are exemplified by the outcomes presented on this website, including: What can I do when the co-signer hasn't paid anything on the house in 7 years and now they want money? How do I get myself out this disastrous situation What can I do as a co-signer? I signed on as the co-signer on a car loan and somehow ended up ...


180

DON'T talk to the creditor. DON'T trash your other good credit. DON'T declare bankruptcy for a good while. The IRA is protected. Protect it. First and foremost, the IRA is untouchable in MD. Creditors cannot touch it. Bankruptcy cannot touch it. Abe must not touch it. The IRA is a sort of "trust account", and Abe, as a "trustee", must protect that from ...


152

Advice based on USA style system. Do not pay it. Do not talk to the creditor. What you have is old debt. The debt is not still accumulating, it has stopped some years ago, and now, the debt is slowly aging out. After 7 years, it falls off your credit report. After some shorter amount of time, 2-6 years typically, it will become "time-barred" ...


132

Cosigning is explicitly a promise that you will make the payments if the primary signer can not. Don't do it unless you are able to handle the cost and trust the other party will "make you whole" when they can... which means don't do it for anyone you would not lend your money to, since it comes out to about the same level of risk. Having agreed, you're ...


124

It looks to me like this is a 'call an attorney' situation, which is always a good idea in situations like this (family legal disputes). But, some information. First off, if your family is going to take the car, you certainly won't need to make payments on it any more at that point, in my opinion. If the will goes through probate (which is the only way ...


97

The registration (title too, right?) is in your name, the car is yours. You need to decide how to politely tell her this.


90

I'm sorry you are going through this, but what you are dealing with is exactly is how cosigning works. It is among other reasons why you should never cosign a loan for someone unless you are 100% prepared to pay the loan on their behalf. Unfortunately, the main "benefit" to cosigning a loan is to the bank - they don't care who makes payments, only that ...


85

Your Mom has really messed up your finances. As cosigner you are liable for the whole of the debt on the car. And worse, you have no right to use the car or even stop your Mom using it. Your Mom used you to get a loan which her finances didn't entitle her to, and by failing to pay it doomed you to the same terrible financial circumstances which she got ...


84

Is your name on your account at all? If yes, you go to the bank tomorrow morning, open an account in your name, and move all the money over. Then tell your company to change their payments to the new account. After that, you explain to your wife. This is madness. (I’d recommend the same to your wife if a member of your family was on that account). If your ...


78

After 8 years, you should have a fundamental understanding that things will not change with this ex-boyfriend. He may not be found, and even if he is, he will not pay any portion. Dragging him through some legal process will cause you to spend money and emotional capital for something that will yield no result. It is a complete waste of time. So really ...


71

The lender is concerned that the loan was paid off with borrowed money and thus the borrower has a debt that they are hiding from the lender. It is absolutely routine for a lender to investigate any recent significant financial changes of a borrower to look for ways they might be hiding debt. It's not unusual for people to receive gifts to help them afford ...


67

In effect to get someone off the loan they would have to refinance the loan as the sole person on the loan, which once again depends on their credit. In other words, if their creditworthiness remains bad they would need another co-signer, otherwise they can't refinance and the situation remains the same. Sometimes the institution holding the loan would allow ...


63

The car is yours, your name is on the title, and you are insuring it based on you being the driver (not her). You are responsible for parking tickets and toll evasion. Any arrangement you might do must account for these facts. Legally, you don't have to give her the car, and can report it stolen if she takes it. Socially, if your family is close enough ...


56

I am not sure how anyone is answering this unless they know what the loan was for. For instance if it is for a house you can put a lien on the house. If it is for the car in most states you can take over ownership of it. Point being is that you need to go after the asset. If there is no asset you need to go after you "friend". Again we need more ...


56

This is why we tell people not to co-sign unless they are able and willing to risk that money becoming a gift... or are able and willing to treat it as business rather than family. Unfortunately that advice is a bit late now to help you. When you cosigned, you promised the bank that you would make any payments he didn't. The bank doesn't care why he didn't,...


56

the loan amount would most likely be around $25,000.00. If the minimum payment was $180/month for 144 months or twelve years, would each of us have to pay $180, That's not how co-signing works. It means that each co-signer is fully responsible for the whole balance. Let that sink in: if you co-sign the loan, YOU are FULLY responsible if your mother stops ...


54

Wrong way round. Transitional arrangements are non-binding guidelines that the lenders can observe if they choose to. The borrower - like your friend - doesn't get to choose whether to use them or not. Your friend obviously can't afford the property, so if you do this, all I can say is congratulations on buying your new house, and I hope you got a deal on ...


53

Dealerships lie. They told you that dad would be a cosigner, but the likely only way the lease could be approved is by him being the primary. They likely did a clever job of concealing that fact, and if your dad signed the paper work, both you and he are co-owners. Any derogatory mark on your credit would equally be on his credit. You two share an equal ...


48

Well, we need to know a lot more info, since where your mom lives will have an impact on what assets are at risk, but the general answer is yes, the assets of the estate are at risk, since your dad was 100% responsible for the debt. (This is what being a co-signer means.) Removing his name from it would require the agreement of the card issuers and given ...


44

I've never heard of those services before, but from looking at one of the websites they don't have ANY kind of Ts and Cs, legal disclaimers, etc. which I feel certain they would need if they were legit. They ask you to pay $48 just to be a member on their site with nothing at all about how likely you are to actually find a cosigner through them, and not even ...


39

You should only loan money to friends or relatives if you are fully accepting the possibility of never ever getting that money back. And in this situation it can happen that you will be forced to give him a very large loan if something bad ever happens to him. (Paying the monthly rates instead of him and expecting he will someday pay it back to you is ...


38

Unless your name is also on the lease/purchase agreement/etc, co-signing for a loan typically does not grant you any ownership at all. By co-signing a loan, you are essentially only saying "if the primary leasee is not able to make payment(s), I will make the payment(s) to cover it". This is why it is often a bad idea to co-sign loans for family or friends, ...


34

In addition to DJClayworth's excellent answer, there may be one other option - but it depends a lot on the details of how this co-signing happened as well as specific laws in your jurisdiction. You've mentioned that she "made you" sign the contract, but haven't provided any details on what that force consisted of. In many places, contracts made ...


33

If you were allowed to "simply" take your name off of a loan because you didn't want to be on the hook in case your friend failed their payments then that would mean that the bank would have to immediately repossess the asset tied to the loan since your friend's credit is not good enough. They only approved the loan because you provided in writing: I am ...


33

A cosigner is 100% responsible for the entire debt. The lender would track down the cosigner and enforce the terms of the loan if you are unable to pay. Why would a person you don't know take on this gigantic risk? Unless you are willing to pay them a huge fee. They would also have to research your ability to pay, and then demand collateral, different than ...


29

Can those assets in whole or in part be seized in any unfortunate events? If the vehicle is used by your wife primarily, then it is likely not at risk. The bank account is, the extent to which you are exposed depends on the state. In some states joint assets are considered equally owned while in others the ownership would be assessed based on contribution ...


27

Pay off the loan, or convince your ex to refinance and pay off the loan. You made a promise to the bank to pay back this loan. You can't remove your liability and shift it to another person because your relationship didn't work out - the bank doesn't care - they want you to fulfill your promise to pay.


27

If you've been paying on the car for three years, it's possible that your credit is in a place where you don't need a co-signer any more. See if your bank will re-fi with you as the sole debtor. If they won't do it, find another institution who will. The re-fi will take your grandpa off the loan, and whichever institution that does the re-fi will still ...


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