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What happens when a car payment go into default for the cosigner?

Anonymous

∙ 13y ago

Updated: 9/21/2023

The co-signer has guaranteed the loan, therefore the bank will go after the co-signer for payment. If the loan is in default the default will go on the co-signer's credit record and if they don't pay the balance if will be on their record as a defaulted loan.

The co-signer has guaranteed the loan, therefore the bank will go after the co-signer for payment. If the loan is in default the default will go on the co-signer's credit record and if they don't pay the balance if will be on their record as a defaulted loan.

The co-signer has guaranteed the loan, therefore the bank will go after the co-signer for payment. If the loan is in default the default will go on the co-signer's credit record and if they don't pay the balance if will be on their record as a defaulted loan.

The co-signer has guaranteed the loan, therefore the bank will go after the co-signer for payment. If the loan is in default the default will go on the co-signer's credit record and if they don't pay the balance if will be on their record as a defaulted loan.

Wiki User

∙ 13y ago

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What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?

If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.

If you are late on your loan payment and are a cosigner on your daughters car can they repposses the car?

Does the cosigner have to drive the car?

No, the cosigner signs on to the loan. Usually, the primary signer owns the car and drives it. The cosigner is there in case the loan goes into default and needs to be paid for. After they sign on the car does not belong to them, but the person who took out the loan.

Can a cosigner take over a car loan?

Yes, a cosigner can take over a car loan if the primary borrower is unable to make payments. The cosigner would become responsible for the loan and would need to make payments to avoid default.

Can a cosigner go to jail if you stop paying your car payment?

because jesus died for me and you.

What happens if you default on IRS payment plan?

If you default on an IRS payment plan, you will be subject to liens (the selling of your mortgaged or collateral property, such as your house or car) or levys (seizure of your property or financial assets). For this reason, it is important to notify the IRS as soon as you find out you will not be able to make a payment, so that they can explain your options to you.

What happens when you default on a car loan?

When a consumer defaults on a car loan their credit becomes negatively affected. Not only that, the previously purchased vehicle will become subject to repossession if the payment is not received.

Does a creditor need to let you know in writing if you are in default of a car payment?

No they do not

If the cosigner of a auto loan files bankruptcy and the borrower can't make payments what happens to the auto and the balance of the loan?

Really simple: The loan goes into default and the car gets reposessed. In many car loans, the language in the contract ensures that in the event of default, the lender doesn't need to provide any more consideration and can take the car without worrying about the money left when default occured.

Can your cosigner repo your car if you are behind on your payment but not in trouble with the financial institution?

Amanda, if you are behind on the payment, youare "in trouble' with the lender. you are in default and could be repoed by the lender at any time. they just havent pushed the issue YET. Co-signor can only 'repo" IF they are listed as co-owner on the TITLE.

What happens when a car is repossessed and you are the cosigner?

You will also be liable for any deficiency balance

Can a car be repossessed if you are late making the remainder of the down payment but have been on time making the car payment?

YES, making the down payment is part of the contract and you are in default on it.