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Can a lender repossess a car that the title is only in the co signers name and being paid by the co signer to pay other delinquent loans with the same lender owed only by the primary borrower?
Wiki User
∙ 13y ago
the key phrase here is'being paid by'. in my totally uninformed opinion,if the car loan is good the car is safe. it did'nt say anything about being co-signer on any other debt, and the faithful[paying] party would be unduly harmed by loss of the money and the car too. It would just suck so loud no law would support it, would it??
Wiki User
∙ 13y ago
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You are attempting to establish credit in your own name your mother is co-borrower on your student loan Will it show on your credit score?
It will only show on the primary borrowers credit report. If the primary defaults on the loan then the responsibility falls to the co-signer. In brief, if the loan is in good standing the primary borrower will have it on their credit report only. If the loan is late or is defaulted it will be reported on both the primary and co-signers report.
What the loan cosigner's responsibility when the loan is for a friend?
A cosigner's responsibility is to pay the loan in full if the primary borrower fails to pay. The connection to the primary borrower is irrelevant, whether it is a family member or a friend. You should never co-sign unless you can afford to pay your friend's loan. You should also note that when you are required to pay the loan as a cosigner (after the primary borrower defaults) your own credit may be ruined and you will be paying for property that you do not own. The default rate for people who need co-signers is high.
Do a cosigner have to be physically present in order to cosign for someone?
Of course. The lender will take the necessary steps to verify the co-signers identity and income since the co-signer is agreeing to pay the loan if the primary borrower defaults.
Does the co signer have to have a job?
Most likely, but alot of it depends on the co signers credit score, also if they have sources of income other than a job. The purpose of a co signer is for the bank to have someone to go after for a debt if you don't pay.
Can a co signer sue the car owner?
Generally, yes, assuming that the "car owner" is the person who took out the loan that was co-signed AND that the owner defaulted on the loan and the co-signer was forced to pay the balance of the loan. Typically, the main borrower, i. e. the car owner, is primarily liable for the loan while a co-signer is only secondarily liable. This means that the co-signer has no obligation to make payments unless the primary borrower defaults. In most contracts involving co-signers, the contract will have a provision that if the co-signer has to pay on behalf of the primary borrower, then the primary borrower must indemnify the co-signer. If the primary borrower refuses to pay the co-signer, the co-signer can sue the car owner to recover what he paid for the car owner.
Are co-borrowers and co-signers the same?
It is my understanding that a co-borrower is a person who will also avail of the loan and shares the responsibility of repaying it, while a co-signer guarantees that the borrower(s) will repay the loan, and will be resonsible for it if the borrower does not repay it.
What is a cosigner responsible for on a car loan?
The co-signer will be completely responsible for paying the loan if the primary borrower defaults on the payments even though the co-signer will have no ownership interest in the vehicle. A co-signer should always be completely informed about the consequences of co-signing. They are guaranteeing that you will pay. If you miss payments it will affect their credit record. If you default it will also wreck their credit. In short, co-signers are responsible in making sure that the primary borrower is able to make the payments on time, and if not, will be their responsibility to continue and settle the payments if the primary borrower fail to do so.
Can you get a school loan after you become a cosigner for someone?
When a borrower needs a co-signer that means they are a credit risk. The bank wants another person to guarantee that the loan will be repaid. Many co-signers end up paying the primary borrower's debt or their own credit is ruined.When you co-sign a loan you are promising to pay the loan if the primary borrower fails to pay. It will be counted against you if you need to borrow funds for yourself. A creditor will view the co-sgned loan as your debt since if could become yours at any time. Unless you can afford to repay your friend's loan in full you shouldn't co-sign for anyone.When a borrower needs a co-signer that means they are a credit risk. The bank wants another person to guarantee that the loan will be repaid. Many co-signers end up paying the primary borrower's debt or their own credit is ruined.When you co-sign a loan you are promising to pay the loan if the primary borrower fails to pay. It will be counted against you if you need to borrow funds for yourself. A creditor will view the co-sgned loan as your debt since if could become yours at any time. Unless you can afford to repay your friend's loan in full you shouldn't co-sign for anyone.When a borrower needs a co-signer that means they are a credit risk. The bank wants another person to guarantee that the loan will be repaid. Many co-signers end up paying the primary borrower's debt or their own credit is ruined.When you co-sign a loan you are promising to pay the loan if the primary borrower fails to pay. It will be counted against you if you need to borrow funds for yourself. A creditor will view the co-sgned loan as your debt since if could become yours at any time. Unless you can afford to repay your friend's loan in full you shouldn't co-sign for anyone.When a borrower needs a co-signer that means they are a credit risk. The bank wants another person to guarantee that the loan will be repaid. Many co-signers end up paying the primary borrower's debt or their own credit is ruined.When you co-sign a loan you are promising to pay the loan if the primary borrower fails to pay. It will be counted against you if you need to borrow funds for yourself. A creditor will view the co-sgned loan as your debt since if could become yours at any time. Unless you can afford to repay your friend's loan in full you shouldn't co-sign for anyone.
Are co signers responsible for liens if borrower quit claims to bank?
The co-signer is responsible until the loan is discharged. When the borrower transfers the property to the lender there may still be sums due on the loan. The borrower and co-signer are equally responsible for paying the debt.
Your car gets repossessed and you have a cosigner. What happens to the cosigner's credit?
The co-signer's credit record is wrecked as badly as the primary borrower's. The co-signer has guaranteed the loan would be paid and they are held equally responsible for paying the loan if the primary borrower fails to pay. It will be noted as a default on their credit record. "Co-signers" who agree to guarantee repayment of a loan for a poor credit risk often do so without understanding their own risk and whether they have the resources to repay that loan.
Can the lending company sue the cosigner on an auto loan if borrower doesn't make payments?
Of course. That's what co-signers are agreeing to when they co-sign.
Can you switch co-signers on your car?
Most lenders will not let a borrower switch co-signers. The reason for this is that the lender would have to go through the approval process all over again including pulling credit reports, calculating percentage rates etc.
