Reply
New Visitor
js84
Posts: 1
Registered: ‎04-04-2013
0

Cosigner on auto loan

Hello, just looking for some advice...

 

I made a stupid mistake and co-signed for an auto loan for a friend.

 

Now, halfway through the term my friend is having trouble making the payments and I got hit with a 30 day late before I found out. The account has been made current. Is there any hope of getting the lender to get rid of the 30 day late?

 

My name is not on the title of the truck. If my friend is unable to or stops paying, do I have any recourse to take possession of the vehicle?

 

Thanks in advance!

Established Contributor
SamsungHDTV
Posts: 566
Registered: ‎10-25-2011
0

Re: Cosigner on auto loan


js84 wrote:

Hello, just looking for some advice...

 

I made a stupid mistake and co-signed for an auto loan for a friend.

 

Now, halfway through the term my friend is having trouble making the payments and I got hit with a 30 day late before I found out. The account has been made current. Is there any hope of getting the lender to get rid of the 30 day late?

 

My name is not on the title of the truck. If my friend is unable to or stops paying, do I have any recourse to take possession of the vehicle?

 

Thanks in advance!


Lots of people get into this bad situation. A cosigner has obligations, not rights. As cosigner you're basically taking on risk that a professional lender wouldn't take. And that's all you're taking on is the risk.

 

Bottom line: The only thing you can do if your friend unable to pay or stops paying is: make the payments yourself. That's what you signed up to do, guarantee the payments. But you still wont be entitled to any ownership of the car. 

 

At least you now know its a mistake to cosign for almost anybody. Try not to let it ruin the friendship, I think that's more important.

I'm a personal banker and do a lot of auto loans serving the Houston area.
I suggest first time car buyers to read the sticky guide in the auto loan section.
I try to check these forums often, but if I missed your post, please feel free to message me with a link to it.
Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
0

Re: Cosigner on auto loan

[ Edited ]

Offer to buy the car from the friend for the balance owed... You can do a refinance and purchase of the vehicle in your name only. You can also offer to take over payments in exchange for him signing over the title to you.   Otherwise, you'll have to make payments and/or be responsible for a deficiency balance if the car gets repo-ed

 

Unfortunately, with your name not being on the title, you have no recourse.  This is why co-signing is a bad idea, and especially since your name is not on the car


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}