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How to deal with stupid cosigner mistake

New Visitor

How to deal with stupid cosigner mistake

I cosigned on a friend's auto loan thinking I was being used as a reference. There are more details, but pointless as it's done and I now realize how dumb it was. After 18 months or so, they could not make payments. The loan now shows as a $7k chargeoff on my credit report as of last year. I  am listed as a "joint" account owner.


The company is American Credit Acceptance. I am trying to clear up my credit to buy a home, and this is the main thing hurting me. I am thinking GW letter, but I can't find info on this company and letter success (or not). They seem to be local/small company. Are those harder to deal with? Would a dispute hurt?


Any advice for removing this chargeoff? (no repo verbiage showing, no collection either-just the charged off account)


Current FICO scores are 638,654,602. 

Message 1 of 3

Re: How to deal with stupid cosigner mistake

Don't mess with it.


If you are working with a mortgage lender that is requiring you to pay off your charged off vehicle loan, then find another lender.  FHA won't require it to be paid (if it is charged off). That would be a lender overlay.  A judgment would be required to be paid no matter who the lender is, except possibly a hard money lender. 


And you are right - a co-signer is a co-borrower is a joint borrower and is fully responsible for the vehicle loan. You are fortunate they don't have a judgment against you. 

Message 2 of 3
New Visitor

Re: How to deal with stupid cosigner mistake

Thanks for answering! I haven't even gotten to the working with a lender stage but this is good info to hear! It has been over a year and no judgment or collection account at all.
Message 3 of 3