co-signer problems

[chino218]

What is the name of your state?ny...i co signed a car loan for my sister and she has since given the car back to the dealer with hopes of reselling it because she couldn't meet the payments...it was auctioned off but they now want the balance of what the didn't get for it...my sister can't pay the said amount of over 14000.00...so they are now after me...question- can the collection agency come after me... can they sieze my accounts, why not hers...garnish my paychecks, why not hers.....why not just threaten my sister...i mean i realize i cosigned but now that the car was given back to the dealer and sold at an auction , why would a collection try to get more from me...i'd send them a drop dead letter but i just don't want to be left out of the loop... as it is my credit is most likely shot....i guess the real question is haven't they already gotten paid and what can i do to rectify this situation....
thanks in advance...
g

[racer72]

i guess the real question is haven't they already gotten paid and what can i do to rectify this situation....

No, they haven't been paid and the only way to rectify the situation is to pay off the balance of the loan. And the reason they are going to come after you rather than your sister is because you are to one that is considered creditworthy and they will likely have a better chance of collecting from you rather than your sister.

Now a lesson in economics and money lending. When you co-signed the loan, the loan was for X amount of dollars. The vehicle, worth Y, is held as collatoral for the loan. And in most cases that apply to auto financing, the amount financed is a lot more than the value of the car. That is called a deficiency. Just because the car was repo'd, it does not relieve you or your sister from your responsibility to fulfill the obligations of your loan contract. And read the contract, it will spell out what to expect if the loan is not fullfilled. And never co-sign a loan again.