Cosigner took property away.

[Cburch07]

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

So to start off, I work at Experian so I have much more than the basic understanding of credit.

I made an early mistake in my life to help a friend and cosign on an auto loan for him.
Well, fast forward 4 months and I've made ever single payment on it, and he has take the car and disappeared. I can't reach him, and the automatic payments are not working (attached to his acct.)

I'm well aware that legally I am responsible for this loan since I cosigned on it, but is there any action I can take against him due to the fact that he took the property, and hasn't paid any if the bills? I refuse to let it default or get repossessed because I will probably want a car/mortgage in the next 7 years... but is there any way I can do anything to try to reclaim the thousands I'll end up spending on this acct? I'm expecting the worst... so any pointers or tips would be greatly appreciated... thank you so much.

 

[Proserpina]

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

So to start off, I work at Experian so I have much more than the basic understanding of credit.

I made an early mistake in my life to help a friend and cosign on an auto loan for him.
Well, fast forward 4 months and I've made ever single payment on it, and he has take the car and disappeared. I can't reach him, and the automatic payments are not working (attached to his acct.)

I'm well aware that legally I am responsible for this loan since I cosigned on it, but is there any action I can take against him due to the fact that he took the property, and hasn't paid any if the bills? I refuse to let it default or get repossessed because I will probably want a car/mortgage in the next 7 years... but is there any way I can do anything to try to reclaim the thousands I'll end up spending on this acct? I'm expecting the worst... so any pointers or tips would be greatly appreciated... thank you so much.

Is it titled in your name with his?

Being that you work for Experian and you live in Texas, you'll know that even if you manage to get a judgment, collecting on it is going to be extremely aggravating at best...

 

[adjusterjack]

I'm well aware that legally I am responsible for this loan since I cosigned on it, but is there any action I can take against him due to the fact that he took the property, and hasn't paid any if the bills? I refuse to let it default or get repossessed because I will probably want a car/mortgage in the next 7 years... but is there any way I can do anything to try to reclaim the thousands I'll end up spending on this acct?

You can sue him if you can find him.

You might even win.

But Texas prohibits wage garnishments for debts and I'm guessing he's smart enough not to keep any money in banks.

If you don't want your credit damaged you're stuck with paying off the loan, probably in its entirety and never seeing the car again or ever having any hope of getting any money out of him.

Expensive life lesson about co-signing from the school of hard knocks.

 

[Cburch07]

Yes the title is in both our names... for all I know the kid is dead, as he's disappeared of the face of the earth... all I can do it pay it off I think... it still tries to do autopay, and he's not the brightest so maybe he'll deposit money and pay it... we'll see. That's for the reply.

 

[FlyingRon]

Yes the title is in both our names...

Then he has as much right to the car as you do.

all I can do it pay it off I think...

You agreed to do that. I'd keep an eye on the payment history (these days you can typically do this on line) and make sure the payment is made by one of you.

 

[Zigner]

I would also suggest that you get yourself an excess liability (umbrella) insurance policy. If the kid ever gets in an accident that causes him to be sued, you WILL be sued too.