topic Re: Wife co-signed a car loan... now cosigner can't pay. What are our options? in Auto Loans

Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Fri, 15 Mar 2013 17:55:43 GMT

Need some help here. Wifey helped out a co-worker who needed a car loan. He ended up being a bad, bad, bad guy. She already knew this but helped him anyway.. I was not involved in the transaction in any way. The loan was for a new compact car, but it covered a previous loan that he could not pay for, so the car is only worth around $12-14K but the loan is for over $30K. She's asked to have him take it over but he either can't or won't. Anyway, turns out he's lost his job again and almost certainly won't be able to pay for his car. No way do I want to end up paying for this guys problems, not after all the problems he's caused for our family. On the other hand, I don't know what options I have. My wife can't file bankruptcy as I live in WA and they would come after me. I don't care about our credit... we have everything we need, so I'm happy to just tell them to go shove it. But at some point I assume they would come after us and garnish at least her wages. Do we have any real options?

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Fri, 15 Mar 2013 19:03:45 GMT

Well I am very sorry to hear the situation you are in, but I would go to the dealership/ bank where the original loan was dispursed and inform them of the situation. Tell them to go and repossess the car immediately, at least you will recoup some of the lost funds this way. You need to look over every inch of the documentation your wife signed and more than likely contact a lawyer. I am unfamiliar with the bankruptcy laws or specific laws in your state, but end all be all the bank chose to use a 15k car as collateral on a 30k loan. If the debtors default (this guy and your wife) they have the right to repossess the car, and sue for the remainder of the loan not covered after sale of the collateral. If the other party gets a judgement for the remainder owed against your wife, I am unsure if they will be able to touch your (husband) personal funds, it depends on the laws in your specific case, but your wife's funds or joint accounts are fair game.

I would suggest going to the bank who holds the loan and discussing possible remedies to this situation. DO NOT AGREE OR SIGN ANYTHING BEFORE A LAWYER REVIEWS THE PAPEWORK.

Good Luck.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Fri, 15 Mar 2013 19:28:12 GMT

The bank that holds the loan has not been particularly helpful. Basically they have said there is nothing they can do unless he refinances the loan without her. He isn't willing or able to do that. They are aware of the situation and will repossess the car if he misses payments, which he has not yet. My hope was that he wouldn't and we could just forget about the matter.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

SamsungHDTV — Sat, 16 Mar 2013 05:07:05 GMT

@Anonymous wrote:
Need some help here. Wifey helped out a co-worker who needed a car loan. He ended up being a bad, bad, bad guy. She already knew this but helped him anyway.. I was not involved in the transaction in any way. The loan was for a new compact car, but it covered a previous loan that he could not pay for, so the car is only worth around $12-14K but the loan is for over $30K. She's asked to have him take it over but he either can't or won't. Anyway, turns out he's lost his job again and almost certainly won't be able to pay for his car. No way do I want to end up paying for this guys problems, not after all the problems he's caused for our family. On the other hand, I don't know what options I have. My wife can't file bankruptcy as I live in WA and they would come after me. I don't care about our credit... we have everything we need, so I'm happy to just tell them to go shove it. But at some point I assume they would come after us and garnish at least her wages. Do we have any real options?

Sell the car, get as much as you can. I don't know how much this will help. But its still not going to fix your problem. I know you weren't involved with the transaction at all, but you really should have been involved, and stopped it. You're the husband. No judgement or blaming here, I'm a little blunt. Its the luxury of talking over forums. I can feel your frustration though, being in a situation like that.

Also, I know you're not worried about your credit, but I'd suggest you have her apply for credit cards now while she can (if her scores arent already affected). A general piece of advice I tell my clients is to obtain and secure credit when you don't need it and are able to. Because when you do need it, it wont be available. You might even want to open up some credit.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

dabrian — Sun, 17 Mar 2013 00:26:46 GMT

Jeez....

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Sun, 17 Mar 2013 02:37:23 GMT

divorce

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

dabrian — Sun, 17 Mar 2013 03:20:25 GMT

@Anonymous wrote:
divorce
+1

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

SamsungHDTV — Sun, 17 Mar 2013 19:51:58 GMT

lol divorce is a little dramatic. I don't think this is a reason to divorce. YOU COSIGNED A LOAN??? I WANT A DIVORCE!

Maybe he should just be more involved in her finances (their finances).

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 18 Mar 2013 13:29:26 GMT

Whoa, your wife.... what a bad decision... this is not even a relative...

Good Luck...

Isn't the entire point of cosigning is that if the primary defaults the cosigner is responsible?

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

tooleman694 — Mon, 18 Mar 2013 14:00:26 GMT

Can you go get the car?

If you are gonna end up paying for it, might as well have it in your driveway.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 18 Mar 2013 14:08:53 GMT

Do not let the car go into repossession. The car will be auctioned for a lot less than what is worth and you will be left to pay the difference. Voluntary repossession is cheaper than an involuntary repossession because there is a lot less fees that are incurred, but both types of repossessions hurt your credit the same either way. Try to take possession of the car, and sell it. Get a personal loan to pay off the difference from what you owe on the car and what it is worth. It is better to default on a personal loan, then it is to get a car repossessed. A collection account for a defaulted personal loan might set you back 50 points. A repossession will definitely set you back 100+.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Jkusa — Tue, 19 Mar 2013 00:19:04 GMT

He ended up being a bad, bad, bad guy. She already knew this but helped him anyway.

Ummm, I hate to say this but my sniff test tells me something more was going on. I'd hide/protect some assets if I were you

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 29 Apr 2013 01:31:48 GMT

Updates?

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 29 Apr 2013 02:47:01 GMT

Hide protect assets then divorce.
I hate you seem rude but are you naive? I'm newly wed and if my wife so much as mentioned helping someone the way yours did just the mention would send me running for the hills. This is what you do contact a lawyer and get a postnup. if she protests tell her youre just protecting your financial future and it's best if one of you at least had great scores. Same rule applies for my wife and I. We have a prenup and a postnup dont apply for anything together.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

ABuckNow — Thu, 02 May 2013 13:19:52 GMT

Indeed - updates please!

It's one thing that I don't like about these forums - how do things turn out? I feel like I'm left with cliff-hangers here all the time.

People present these interesting problems, people respond with advice, but we rarely hear back if it worked.

Like this guy...what man lets his wife co-sign a car loan with another man? seriously? Jepordize marital assests for another man?...dude needs to pile up some cash and hide it and get a lawyer).

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Walt_K — Thu, 02 May 2013 21:12:08 GMT

I know, so shocking there's no update right? I mean with all the helpful advice that was offered directly addressing his question with no suggestions that his wife was committing adultery, hard to believe he hasn't come back.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Thu, 02 May 2013 22:06:44 GMT

He was given all the advice and options that exist... They either pay for the car, have it repo'd or sell it and pay the difference. That's all they can do.

Now the real question is why the hell would your wife co sign for a car for a co worker? What ever a spouse does always has some sort of effect on the other no matter what the laws are in your state.

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Sun, 05 May 2013 03:14:58 GMT

my family same like you.i end up trade honda accord( we co-signed for them) and trade my 2010 BMW 328i Conv+ the truck 1999 F150 i just got 1 week ago for my boat. traded 3 cars in to get chevrolet suburban. honda -4k, BMW -5K F150 + 2K and put 5K down payment ( just bough F150 3k6 a week ago, i am a idiot)But now i feel much better. Never co-sign for anybody !!!!! So

If you dont have much money down, you can try to trade that car and your car to get another , you can roll over your new payment, dont let it happen when you can do it. !!!!

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 06 May 2013 03:53:36 GMT

@Anonymous wrote:
my family same like you.i end up trade honda accord( we co-signed for them) and trade my 2010 BMW 328i Conv+ the truck 1999 F150 i just got 1 week ago for my boat. traded 3 cars in to get chevrolet suburban. honda -4k, BMW -5K F150 + 2K and put 5K down payment ( just bough F150 3k6 a week ago, i am a idiot)But now i feel much better. Never co-sign for anybody !!!!! So
If you dont have much money down, you can try to trade that car and your car to get another , you can roll over your new payment, dont let it happen when you can do it. !!!!

Re: Wife co-signed a car loan... now cosigner can't pay. What are our options?

Anonymous — Mon, 06 May 2013 04:20:48 GMT

??? Those were my first thoughts also!