cosigned loan,bill coming in my name only

[stewie86]

What is the name of your state (only U.S. law)? washington

I cosigned a loan for my cousin to get a car,up until last month the bill has always come in both of our names,now it came only in mine.

I was under the impression that the only way to get your name off a loan that was co signed was the pay the loan off or re-finance the loan,neither of which have happened.

Any advice or insight would be greatly appreciated

 

[swalsh411]

You are correct. You are just as responsible for the loan as he is. If you value your credit I suggest you ensure that it's being paid one way or another.

 

[sandyclaus]

The finance company probably realizes that the friend is no longer making payments, so they have started sending the bills directly to you.

Either way, you can end up on the hook for the bills. If you want to make sure that your friend is held liable, you'll have to pay off the balance yourself and sue the friend for what you paid.

 

[davidmcbeth3]

What is the name of your state (only U.S. law)? washington

I cosigned a loan for my cousin to get a car,up until last month the bill has always come in both of our names,now it came only in mine.

I was under the impression that the only way to get your name off a loan that was co signed was the pay the loan off or re-finance the loan,neither of which have happened.

How do you know that the principle signatory is off the loan? Call them up and ask.

 

[stewie86]

The finance company probably realizes that the friend is no longer making payments, so they have started sending the bills directly to you.

Either way, you can end up on the hook for the bills. If you want to make sure that your friend is held liable, you'll have to pay off the balance yourself and sue the friend for what you paid.

Well thats it,though,the bill is paid and is being paid,its not in default,the bill I received had the payment posted,but I just thought it was weird that the bill that was addressed to both of us suddenly came in only my name.I have not been contacted by the finance company in any way regarding a default or late payment.

I guess what I was getting at is,is there any possible way to remove your name from a loan like that,I thought maybe she did a refinance but wondered why the bank would send the bill to me instead.I can not contact the finance company until monday,but I came here to cover my bases.

Do you think she could have refinaced the loan with out my approval?We are not actually on talking terms,she has made some choices that I do not agree with,otherwise I would have just called her to sort it out instead.

Also,if She does decide to not make a payment,am I in my right to take the car and sell it for the value of the loan and pay off the loan?

 

[swalsh411]

No you cannot steal the car. You are on the hook for the entire amount of the loan. This is what can happen when you co-sign.

 

[stewie86]

No you cannot steal the car. You are on the hook for the entire amount of the loan. This is what can happen when you co-sign.

I do not wish to steal the car,but if she stops making payments can I take the car back?since I would be making the payments or do I have to make the payments and she keeps driving the car?

basically,she has gotten into using and selling drugs and I do not want to be associated with that.I am afraid she will stop making the payments on the car and then it will be taken away by the police,leaving me to foot the bill,is there anyway to protect myself in this situation.

3 years ago when I cosigned the loan she was in school and not on drugs.the loan amount on the car is only has 2k dollars left.If it was possible to take the car if she stops making payments,could I sell the car for the remainder of the loan and pay off the bank?

please read my entire post before answering and before assuming things like I want to steal the car.

 

[Banned_Princess]

I do not wish to steal the car,but if she stops making payments can I take the car back?since I would be making the payments or do I have to make the payments and she keeps driving the car?

not unless you are on the title to the car. yes you make the payments and she keeps driving the car.

basically,she has gotten into using and selling drugs and I do not want to be associated with that.I am afraid she will stop making the payments on the car and then it will be taken away by the police,leaving me to foot the bill,is there anyway to protect myself in this situation.

no, you co signed. for example If she files for bankruptcy, and this debt is discharged, the bank still has you to go after for the money, and the car is still hers.

3 years ago when I cosigned the loan she was in school and not on drugs.the loan amount on the car is only has 2k dollars left.If it was possible to take the car if she stops making payments,could I sell the car for the remainder of the loan and pay off the bank?

NO. NOT UNLESS THE CAR IS TITLED TO YOU. this is not your car in any way, and nomatter what, its her car.

please read my entire post before answering and before assuming things like I want to steal the car.

taking a car that isn't yours and selling it, is stealing. Actually its more then stealing, its grand theft. a felony.

before we go any further, answer whether or not the car is titled to you in any way.

 

[stewie86]

not unless you are on the title to the car. yes you make the payments and she keeps driving the car.





no, you co signed. for example If she files for bankruptcy, and this debt is discharged, the bank still has you to go after for the money, and the car is still hers.



NO. NOT UNLESS THE CAR IS TITLED TO YOU. this is not your car in any way, and nomatter what, its her car.




taking a car that isn't yours and selling it, is stealing. Actually its more then stealing, its grand theft. a felony.

before we go any further, answer whether or not the car is titled to you in any way.

Thank you for answering all of my questions,I never intended to take the car if it was illegal,That is why I was asking and I appreciate the explanation of why it would be illegal instead of "you cant steal her car".

I actually just went through the paperwork and it seems the bank has me as the primary on the loan and not the co-signer,why it is like this I don't know,since we told them when we went in that I wanted to be the co-signer,but it seems that maybe that way I have a little more weight in the situation if that is the case.Please enlighten me if I am wrong or maybe advise of my options if they are different than being just a co-signer.

on a side note,say she did lose the car,the cops impounded it for what ever reason,would I be able to take her to small claims for the losses that I would incur,from the responses so far,I would lean towards a no,but I am no expert,hence the reason that I am here.

 

[Banned_Princess]

Thank you for answering all of my questions,I never intended to take the car if it was illegal,That is why I was asking and I appreciate the explanation of why it would be illegal instead of "you cant steal her car".

I actually just went through the paperwork and it seems the bank has me as the primary on the loan and not the co-signer,why it is like this I don't know,since we told them when we went in that I wanted to be the co-signer,but it seems that maybe that way I have a little more weight in the situation if that is the case.Please enlighten me if I am wrong or maybe advise of my options if they are different than being just a co-signer.

on a side note,say she did lose the car,the cops impounded it for what ever reason,would I be able to take her to small claims for the losses that I would incur,from the responses so far,I would lean towards a no,but I am no expert,hence the reason that I am here.

yes, if you end up paying anything she was supposed to be paying (the loan) you can sue her for the amount you paid for her car.

thats not to say you will get any money from her when you win, but maybe one day she will have something you can put a lien on.

 

[stewie86]

yes, if you end up paying anything she was supposed to be paying (the loan) you can sue her for the amount you paid for her car.

thats not to say you will get any money from her when you win, but maybe one day she will have something you can put a lien on.

Ok,thank you for that information.A few more questions If I may.

I will not know for sure until I call the bank on monday and see if she is off the loan agreement,that means,if I am reading and understanding things correctly,that she must have forged my signature in order to refinance the loan.Would that be a correct assumption?

That seems the only way that she could have removed herself from the loan agreement according to what I have seen from you.Could there be another possible way for her to have done this?

 

[Banned_Princess]

Ok,thank you for that information.A few more questions If I may.

I will not know for sure until I call the bank on monday and see if she is off the loan agreement,that means,if I am reading and understanding things correctly,that she must have forged my signature in order to refinance the loan.Would that be a correct assumption?

That seems the only way that she could have removed herself from the loan agreement according to what I have seen from you.Could there be another possible way for her to have done this?

how long have you had this loan? have you ever had to make a payment? is it a personal loan, or a secured auto loan?

check with the bank Monday and get back to us with exactly what is going on with this. other then that you are just worrying all tomorrow without really knowing the exact particulars. Its possible leaving your (sister?) off the bill was just a small clerical error. I would go so far as to say the bank wont just accept your signature without you actually be there with your ID for such a huge change.

 

[swalsh411]

I appreciate the explanation of why it would be illegal instead of "you cant steal her car".

My answer was legally correct. I don't think you understand the relationship between the car and the loan. You cosigned a loan for money. The car is merely the property used to secure the loan. You don't have any ownership rights to the car just because you cosigned on the loan used to buy it. The only way you would have any ownership rights to the car would be if you're on the title.