Co-sign car loan, help!

[cautioncones]

So in 2014 I co-signed to helped my my mother purchase a new car. As I am going through my mortgage process on my house, the requested 12 months showing that she makes the payments (which she does, however, they needed additional income proof which is where I came in). She has perfect payments on the car, however, In May and June of last year my mom used my grandmothers account (which I was an authorized user on, the account has been closed for a while now) and made two payments from that account. My Loan Officer told me that those two months are going to cause an issue. Does anyone know of anything I can do such as a sworn affadavit or anything to prove that I do not make those payments? I asked him about a notarized letter, however, he told me its not that easy any more. Please help!

[DallasLoanGuy]

i have never had to use a notorized letter.

just write a letter of explanation in detail about the accounts and ask the loan officer to let the uw review it

[cautioncones]

Thats my issue, he said its not that easy anymore and i have her records from 2014 showing her payments, it was just those two months that used the account with my name.

[JBjunior]

Factually and legally you did "make" the payments.  Or, at least your mother didn't for whatever reason and utilized an account that wasn't her own.  It seems they are looking at it from two different perspectives and want to see two different things: 1) Your mother has it 100% under control and has been easily paying the loan, so that it won't fall back on you. 2) It shouldn't be counted against your debt because she has been paying it, not you.  In this instance, it is a negative on both accounts.  She utilized an account that wasn't her own to make two payments, that is a strike against number 1 and the account used was your account (partially) so that is a strike against number 2.

With potential equity built into the auto loan at this point, is she able to refinance into her name alone or find another co-signer?

[Imperfectfuture]

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@JBjunior wrote:

Factually and legally you did "make" the payments.  Or, at least your mother didn't for whatever reason and utilized an account that wasn't her own.  It seems they are looking at it from two different perspectives and want to see two different things: 1) Your mother has it 100% under control and has been easily paying the loan, so that it won't fall back on you. 2) It shouldn't be counted against your debt because she has been paying it, not you.  In this instance, it is a negative on both accounts.  She utilized an account that wasn't her own to make two payments, that is a strike against number 1 and the account used was your account (partially) so that is a strike against number 2.

With potential equity built into the auto loan at this point, is she able to refinance into her name alone or find another co-signer?

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Double on this.  Mom needs to take over.  Is her income the problem?  Can another family member step up?

[cautioncones]

Unfortunately no she cannot. she is on social security as she is disabled and her income is only about 13k per year. Granted she can indeed make the payment but idk if the banks will approve with such low income.

[JBjunior]

It really stinks that you are in this position.  You were trying to do something nice for your family and it has put you in a bind.  

[Anonymous]

What was the length of the loan for? If it was 48 months it's already about half way, a local credit union might be able to help her refinance it.

[Imperfectfuture]

Tell her free room and board two months out of year until car paid off. You are right, that income is bleh. How about another family member step up? Just until you get the mortgage?