co-signing a loan

[cherrylw]

If you co-sign a vehicle loan and the person you co-sign for breaches the contract and the vehicle is repossed, what are the options of the co-signer? Can he sue for the money from the one who did not keep up the payments?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by cherrylw:
If you co-sign a vehicle loan and the person you co-sign for breaches the contract and the vehicle is repossed, what are the options of the co-signer? Can he sue for the money from the one who did not keep up the payments?

<HR></BLOCKQUOTE>

My response:

If you are contemplating the consigning of a loan, I STRONGLY SUGGEST that you think three times before doing anything of the kind. You could be left on the hook and have your good credit ruined. If the person stopped making payments, what makes you think they'll have money to pay you if you win a judgment against them? Real bad Karma.

IAAL



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[Prairielaw]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by cherrylw:
If you co-sign a vehicle loan and the person you co-sign for breaches the contract and the vehicle is repossed, what are the options of the co-signer? Can he sue for the money from the one who did not keep up the payments?<HR></BLOCKQUOTE>

IAAL is right as to her/his thoughts. As far as collecting from the other party it is worth a shot if you signed just to accommodate the other party who used the car through out this time. Hopefully the balance owed after they sold the car will be within small claims court limits. In addition there may be nothing to collect from if they could not make the car payments.

Law on, Kevin



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Kevin O'Keefe
Founder & Fearless Community Leader
Prairielaw.com
"More people helping people with the law than anywhere."