how do my husband and I remove a defaulted co sign loan from credit report

[dana wharton]

my husband against my better judgement cosigned on a loan through our credit union in no. california for a friend that was unable to get a loan due to a bankrupcy that was 7 years prior. the so called friend never made a payment. even lied to us that he had taken care on loan by making addtional payment arrangements.we had a credit report done to see about buying a house and the loan has now defaulted and is on our credit rating. This mark along wwith others is keeping us from buying a house or even renting a house or apartment. What can we do to remove the loan from our credit report. I know we a responsible to pay the bill my other question is should we sue in small claims or should we go for blood and sue in civil court or can we fill in both courts.

 

[JETX]

Q1) "What can we do to remove the loan from our credit report."
A1) You can't just 'remove it'. By co-signing for the loan, your husband is EQUALLY responsible for the debt, and any reports generated by that debt, as the 'original' primary debtor.

Q2) "should we sue in small claims or should we go for blood and sue in civil court or can we fill in both courts."
A2) If the amount is within the state jurisdictional limit for small claims, it would probably be much simpler to sue there. You would require an attorney (read 'more expensive') if you decided to sue in a higher court. And you can't 'file' in both courts since that would be "res judicata" and the second trial would be dismissed solely upon motion of the debtor.

Note: the only way that you can sue in any court is if YOU pay the amount of the loan first, then sue to recover your costs.