Cosigner Woes

[BadlyDuped]

Cosigner Woes - Please help

What is the name of your state? Virginia
A couple of years ago, a friend "M" approached me needing help in finding a cosigner for a student loan to fund his Graduate studies. I couldn't sign for it myself so I got another friend "C" to cosign the loan as a favor.

The loan went into repayment one year before "M" was to graduate. Unfortunately he did not make his payments on time so "C" got negative points on his credit. We have since come to find out that "M" was never admitted to graduate school and had lied to us from the beginning. He has infact not been enrolled for at least two semesters. "M" has forged signatures of "C" in applying for forbearence, furnished fake e-mails indicating account status is up to date, written bounced checks to the loan company and us. Outstanding loan amout is just over $26,500.

We would like to be released from the loan immediately. Are there any grounds for pursuing criminal or civil charges against "M." Also, "M" is an internatinal student, and had surrendered his passport willingly to us, which will be returned on condition that everything is resolved.

Please advise.

 

[djohnson]

First off, C's only chance would be to sue M and get a judgment. Then hope it could be used sometime in the future. If C signed the loan then C can't just be taken off because he doesn't want to be on there anymore. He will have to pay it off. If he doesn't, then he has nothing much to even go to court over with M. You are nothing but a witness to the transaction.

 

[BadlyDuped]

Thanks Mrs. Johnson for the feedback.

A few more questions. Upon discovering that the borrower ("M") was not in Grad school, the cosigner "C" and I met with the the borrower and put together a signed agreement. The borrower had two options. 1 - Pay off the loan in full. 2 - Bring the account to good standing, and make monthly payments while looking for ways to relase "C" from the loan either by paying it off or finding another co-signer.

We had paid about $1500.00 to get the loan in good standing, which was to be paid back by "M". He wrote to us a check which bounced. He also made a monthly payment which also bounced. This broke our signed agreement.

Would the signed agreement be useful in getting a judgment against the borrower? If a judgement is to be found, would it be enforcable should "M" leave the country (he's a foreign national)? We have his passport in hopes that he can't leave the country. Are there any rules we would be in violation of by holding on to his passport - we have a signed agreement indicating he surrendered it willingly and an audio recording as well.

Can we go after him for 'malicous intent'/'fraud.' We have e-mails from him saying he's working as a graduate assistant and will be graduating with his masters in May 2005. Also, how would Statutes of Limitation apply? Lastly, if we are to get a lawyer, what kind of lawyer should we seek?

Any feedback would be very helpful. Thanks.

 

[djohnson]

You can file a warrant for the returned checks as that is a criminal matter. The rest you can sue for in civil court. If you get a judgment, you can attach assets or wages. It's a long shot. As for the passport, it would be easy enough to file a lost one and get another one. Holding it just causes him extra time and work if he wants to leave the country, but it doesn't stop him. Remember many things are going to be he said/she said. He could say the loan was for something totally different. He could say the checks he wrote you were loans to you and you defaulted and he put a stop payment on them. Just keep in mind to have every piece of proof you can if you go to court. Also remember when this goes to court, you can't say paid us. You are not a party to this, just a witness. He may bring his own. You didn't co-sign, nor loan anything. His agreement isn't with you.