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Established Contributor
lithium78
Posts: 929
Registered: ‎07-30-2011
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Never co-sign a loan. Never, ever ever.

Just minutes ago I got a score watch alert.  The auto loan I co-signed for my ex-girlfriend seven years ago went negative.  It seems that she missed the very last payment and failed to tell me about it in time.  I wish I could go back seven years ago and warn the younger version of me never to co-sign a loan for someone.  Especially a girlfriend.  I wish I had known back then all the information I know about credit now.

 

As it stands, my EQ score just plummeted 35 points.  I was going to have a clear credit report by the end of the year, but now that is over and done with.  My only option for a mortgage is going to be sub-prime and I won't be able to afford the interest.  I feel like my dreams have just died.

 

So, anybody reading this, don't make the mistake I made.  Never co-sign for anybody.  Never, ever ever.


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drkaje
Posts: 3,492
Registered: ‎07-25-2008
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Re: Never co-sign a loan. Never, ever ever.

FWIW,

 

The younger you wouldn't have listened. It's pretty hard to win an argument against hormones. :smileyhappy:

 

Have you tried contacting the lender, yet?


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lithium78
Posts: 929
Registered: ‎07-30-2011
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Re: Never co-sign a loan. Never, ever ever.

I just got the score watch alert a few minutes ago so the credit union is already closed for the evening.  I'm going to have to try contacting them tomorrow.  This is a disaster.  I had almost made it to freedom and she had to take the very last moment to screw me (and herself in the process.)


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GregB
Posts: 1,670
Registered: ‎05-24-2007
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Re: Never co-sign a loan. Never, ever ever.

I would agree x1000 about never, ever cosigning a loan.

 

I would collect the pertinent information regarding the likely difference in the loan that you will get on your house. Then notify your ex that you intend to demand payment for the difference. If you keep a $200K house for a full 30 year mortgage, the difference between 4% and 5% will be $43,000. The difference betwwen 4% and 6% would be $89,000.

 

Don't forget that you need to keep the lawsuit within SOL.

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drkaje
Posts: 3,492
Registered: ‎07-25-2008
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Re: Never co-sign a loan. Never, ever ever.

Even if you have to make the last payment, get it deleted.

 

Is it remotely possible that her car was taken in on trade and final payment was made but funded after the due date? She may not have intentionally screwed you but cut things too close.

 

Hopefully the CU is forgiving.


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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Never co-sign a loan. Never, ever ever.

Ouch on the co-sign. We all learn the hard way. :smileysad:

 

It sounds like the loan was with a credit union, right? Are you still a member there? If so, I would hope that serious groveling on your part (including making that last payment) might be enough to make them pull back the reported late.

 

Good luck! and keep us posted.

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FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
lithium78
Posts: 929
Registered: ‎07-30-2011
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Re: Never co-sign a loan. Never, ever ever.


haulingthescoreup wrote:

Ouch on the co-sign. We all learn the hard way. :smileysad:

 

It sounds like the loan was with a credit union, right? Are you still a member there? If so, I would hope that serious groveling on your part (including making that last payment) might be enough to make them pull back the reported late.

 

Good luck! and keep us posted.


I'm hoping that the credit union will help me out, especially since I'm the co-signer not the primary on the loan.  Somehow, she managed to stretch the loan out an extra year without penalty but she still managed to screw up the very last payment on it.  The loan is now PIF, so I have that going for me.  I'm sending out a GW letter in the morning and I'm going to call the CU in the afternoon to see if they can do something.

 

This is so frustrating, because my credit report would have been 100% clean by the end of the year and now this happens and I had absolutely no control over it.  When  I called my ex-gf to discuss it, she seemed completely unconcerned that she had just tanked my (and her) credit score. 


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drkaje
Posts: 3,492
Registered: ‎07-25-2008
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Re: Never co-sign a loan. Never, ever ever.

Crossing my fingers, toes, and eyes!


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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Never co-sign a loan. Never, ever ever.


lithium78 wrote:

haulingthescoreup wrote:

Ouch on the co-sign. We all learn the hard way. :smileysad:

 

It sounds like the loan was with a credit union, right? Are you still a member there? If so, I would hope that serious groveling on your part (including making that last payment) might be enough to make them pull back the reported late.

 

Good luck! and keep us posted.


I'm hoping that the credit union will help me out, especially since I'm the co-signer not the primary on the loan.  Somehow, she managed to stretch the loan out an extra year without penalty but she still managed to screw up the very last payment on it.  The loan is now PIF, so I have that going for me.  I'm sending out a GW letter in the morning and I'm going to call the CU in the afternoon to see if they can do something.

 

This is so frustrating, because my credit report would have been 100% clean by the end of the year and now this happens and I had absolutely no control over it.  When  I called my ex-gf to discuss it, she seemed completely unconcerned that she had just tanked my (and her) credit score. 



You probably gave her a reason to go have a glass of wine.

 

Chin up, I'm sure this will get resolved and hopefully serve as a lesson for others.

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pizzadude
Posts: 9,603
Registered: ‎01-28-2010
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Re: Never co-sign a loan. Never, ever ever.

 

So it sounds like this was a 60 month loan originally, streched into a 72 month loan ?    I'm really sorry to hear about the late pay ~ hopefully the CU will cut you some slack on it.  I think the fact that it is paid should help as well.

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