broken co-signed contract

[fruikmen]

What is the name of your state? washington
I cosigned for a car loan for my step daughters husband. They have given me the car back after 11 months because I demanded they show me proof of insurance (I do not belive they had any). The payments have been made on time up till now. Todays pay off is $27,827.29 or $32,034.64 with 59 payments of $543.96 per month. They had a van they owed $16,500.00 on that they gave to the dealer as part of this contract, to be paid off as part of the loan. Privet party blue book value on the car (2003 mitsubishi galant) is worth aproximatly $11,625.00. What can I do? What are my options?
n

 

[divgradcurl]

What is the name of your state? washington
I cosigned for a car loan for my step daughters husband. They have given me the car back after 11 months because I demanded they show me proof of insurance (I do not belive they had any). The payments have been made on time up till now. Todays pay off is $27,827.29 or $32,034.64 with 59 payments of $543.96 per month. They had a van they owed $16,500.00 on that they gave to the dealer as part of this contract, to be paid off as part of the loan. Privet party blue book value on the car (2003 mitsubishi galant) is worth aproximatly $11,625.00. What can I do? What are my options?
n

Well, there are a couple of things you can do. If they want to keep the car, let them keep paying on it -- if you have to get insurance yourself, do it. You could keep the car yourself and keep paying on it. You could sell the car, but you and other guy will still be on the hook for the difference between what you get for the car and what you owe on the car. You could let the car get repossessed, but then you'll have a mark on your credit and still owe the balance on the car.

If you end up paying more than the original purchase price for the car yourself (not more than the value, but the purchase price) which reflects the "rollover" amount from their trade in, you could sue them to recover that amount, if they have any assets. You can't, however, keep the car AND expect them to continue paying for it.

This is why co-singing for a loan is not something to take lightly.