car seized transporting illegal alien

[whiteranch1]

What is the name of your state? CA/OK

My husband cosigned for his nephews car. The nephew supposedly loaned the car to a friend who picked up a foreigner with a fake ID in Mexico and attempted to bring her across the border. When the alien didn't know her SS# the border patrol was suspicious and ultimately the car was impounded.
The government informed the bank that the car is in impound. My nephew is trying to recover the car. What will the likely consequences be to my husband and I regarding our credit, and will my nephew be able to recover the car? Thanks.

 

[Some Random Guy]

Your credit will only be affected if the loan is not paid. Even if the car is permanently seized, you and your nephew are responsible for the payments.

Since you are the cosigner, you should insist on seeing your nephew's loan statements proving that he is paying every payment on time.

 

[whiteranch1]

Thus far he is paying the payments as he stays one payment ahead because of lapses in paying in the past when we really reamed him. What can the bank do about the lack of security for the loan? Thanks