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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??
What else can I help you with?
Can you have 2 co-signers on a car loan?
Yes, it is possible to have two co-signers on a car loan. Both co-signers are equally responsible for repaying the loan if the primary borrower defaults.
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.
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.
Does the lender have any legal obligation to inform the co signer of late payments and how delinquent can it get before they try to get the co-signer to make payments in lieu of the primary?
Lenders are generally not legally obligated to inform a co-signer of late payments unless the loan agreement specifically stipulates such notification. However, many lenders may choose to notify co-signers as a courtesy, especially when the primary borrower fails to make payments. The timeline for when a lender might seek payment from the co-signer varies, but typically, they may begin to contact the co-signer after a few missed payments, often around 30 to 90 days delinquent, depending on the lender’s policies.
How does filing for a consumer proposal affect a co-signer?
Filing for a consumer proposal can significantly impact a co-signer because they remain responsible for the debt if the primary borrower defaults. While the consumer proposal protects the borrower from creditors, it does not absolve the co-signer of their obligation to repay the debt. This means that the co-signer might still face collection actions or a negative impact on their credit score. It’s crucial for co-signers to understand their potential liabilities and communicate with the primary borrower about the situation.
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.
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.
