Hot answers tagged

313

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 won't). ...


175

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 ...


151

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 ...


123

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 ...


81

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 ...


80

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 ...


67

"Her solution to the problem is to take my car" - i.e. THEFT. If you are on the title, it is your car. A cosigner has no right to the item purchased - all he did was guarantee the loan in case the signer does not pay. Anything between the signer and the cosigner is a civil matter (i.e. the cosigner could ask for damages if the signer does not pay). But the ...


60

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 ...


57

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,...


51

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 ...


49

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 ...


40

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 ...


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, ...


37

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 ...


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 ...


28

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

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 ...


26

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.


24

You're not going to like the answer -- the only way to get your name off the loan is to have the loan paid off. Unless there was fraud involved (and from your description there wasn't), the lender isn't going to let you off the hook. The bank wants as much protection as it can get. That's why you co-signed in the first place. If you can convince your ex to ...


20

The point of co-signing for a friend is that they're your friend. You signed for them in the belief that your friendship would ensure they didn't burn you. If your friend has hung you out to dry, basically they aren't your friend any more. Before you lawyer up, how's about talking to your friend as a friend? Sure he may have moved away from the area, but ...


20

My rule is: You never guarantee or co-sign for someone else. If you have the money and want to help then give them the money. If you don’t want to give them the money, then don’t co-sign. There’s no way for you to get out of this. To make you feel better, it was a costly learning experience, but some people have a lot lot more expensive learning ...


20

You ask a good question, but I think you are sadly mistaken in some of your views on personal finance. The first is a that a good credit score for you has much value. It has some, but credit score does not indicate wealth. The second misconception is that you are somewhat insulated from your wife's financial condition. You aren't and the bad things that ...


16

This is what cosigning means. You promised to pay the loan if he didn't. That was a commitment, and I recommend "owning" your choice and following it through to its conclusion, even if you never do that again. TLDR: You made a mistake: own it, keep your word, and embrace the lesson. Why? Because you keep your promises. (Nevermind that this is a rare ...


16

You asked: In a unlikely case of my friend not paying the car, I suppose the bank will use the lien and will sell the car first and will ask me to pay any difference. No. If your friend does not pay the loan installments, the bank will come after you for the whole loan, or at least whatever part your friend hasn't paid off. The bank does not want a ...


Only top voted, non community-wiki answers of a minimum length are eligible