cosigned for son

[travislisajo]

I cosigned for my son on an autormobile loan. He wrecked the car and sold it without paying off the existing loan. He has discontinued making payments and now I have been making payments since April so as not to ruin my credit further. Do I have any recourse from him. We had made an agreement that I would pay the bank loan and he would pay me so much every month. He has not done this and I want to know what my options are. We live in Pontotoc, MS! Also, if I just quit making the payments what consequences are there against me from the bank. I am the cosigner.

 

[JETX]

Q1) "I want to know what my options are."
A1) Basically you have three options:
a) Pay off the balance and take him to court to recover your losses (payments plus interest paid in his behalf), or
b) Let the little child go with a severe warning that he better not do this again, or
c) Beat the crap out of him for disrepecting his parents so much that HE put you in this position.
Naturally, you can do more than one of the above.

Q2) "if I just quit making the payments what consequences are there against me from the bank."
A2) If this loan is at the same bank as your funds, they will just take the funds directly from your account, with or without your permission. Or, if the funds are not sufficient or the loan is at a different lender, they could get a lawsuit against you and enforce it by levy and/or seizure as allowed by law.

 

[travislisajo]

Even though I cosigned I can pay it off and take him to court to collect it? What if I am making payments, can I take him to court for the amount of what I've paid or do I have to wait until it is paid completely.

 

[JETX]

Q1) "Even though I cosigned I can pay it off and take him to court to collect it?"
A1) Yes.

Q2) "What if I am making payments, can I take him to court for the amount of what I've paid or do I have to wait until it is paid completely."
A2) You can do it either way. However, it would be best to get the full amount in one suit, rather than having to file periodically (annually) to recover that periods payments.