Help I co-signed a vehicle last year for my brother and he missed two payments and my credit score has dropped 40pts in one and 50pts in the two other. 
What should I do?
@Florida1990 wrote:Help I co-signed a vehicle last year for my brother and he missed two payments and my credit score has dropped 40pts in one and 50pts in the two other.
Get your name off the loan as soon as you can - that is the best way to protect yourself. The way to do that is he has to refinance the vehicle into his name only.
It will be very difficult if not impossible for him to do that with 2 missing payments.
The other way is for him to pay you and you to pay the lender.
Another way is to sell the vehicle and bring cash to the deal (I assume he is upside down - owes more than it is worth).
Your options are very limited. You are 100% responsible for this loan (as well as your brother). Look for the words: "jointly and severally" in the loan documents. It means you both together and/or each of you separately are 100% responsible for the repayment of this loan. It is in all co-signed loans so it is nothing unusual but it is harsh. If he gets a repo, so do you. So: protect yourself now before that happens.
@StartingOver10 wrote:
@Florida1990 wrote:Help I co-signed a vehicle last year for my brother and he missed two payments and my credit score has dropped 40pts in one and 50pts in the two other.
Get your name off the loan as soon as you can - that is the best way to protect yourself. The way to do that is he has to refinance the vehicle into his name only.
It will be very difficult if not impossible for him to do that with 2 missing payments.
The other way is for him to pay you and you to pay the lender.
Another way is to sell the vehicle and bring cash to the deal (I assume he is upside down - owes more than it is worth).
Your options are very limited. You are 100% responsible for this loan (as well as your brother). Look for the words: "jointly and severally" in the loan documents. It means you both together and/or each of you separately are 100% responsible for the repayment of this loan. It is in all co-signed loans so it is nothing unusual but it is harsh. If he gets a repo, so do you. So: protect yourself now before that happens.
+1
try to keep up with the payments immediately. once you do, call the lender and ask them if they can cut you some slack and remove the late notations. Some banks will do it just to "encourage" people to pay back what they owe rather than to deal with a default.
Thanks for the information FicoFam. They are now working with him to get him back on track thank goodness! I will never do this again. :/ 
