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How do a cosigner remove their name from a car loan if the person they cosign for is not making payments?

Brandon Scott

in Student Loans

1 answer

1 answer

Ashley Howard on November 27, 2019

Unless the creditor accepts it, which is not likely, it may not. That is the point of cosigning: it's not you saying, "yes, my friend is a great guy, you should give you a loan", that is to say, "my friend is going to pay the loan and if not then I'll do it for him ." Since in this case your friend is clearly no longer pay the loan, why would the bank just let you off the hook? Answer: no. At any time you cosign a loan, you need to realize that you are taking the risk of having to pay the loan yourself. You will probably have to tell the creditor that does not, or cannot, pay the debt and that they will have to take possession of the vehicle. Probably reflect on your credit rating, however. That said, there is nothing wrong in contacting the creditor and ask. The worst thing that can happen is that they say 'no', that leaves you in the position you are already in, not the best but not the worst. (Potentially could get them to speed up the recovery of the possession proceedings as well: "Hey, the guy who vouched for this deadbeat does not trust in him, rather, we need to get our property back as soon as possible.") . You have a couple of options: . If you can afford to pay the loan in full, you could do that and that your friend owes you rather than the bank. Since the original loan no longer exists, that already is not an endorsement. It's not going to completely fix the damage that has already been done, but paid for by the loans look a lot better on your credit report slopes that are constantly late/lost or a takeover. The disadvantage is that your deadbeat friend is not likely to be better in the payment of you of what they were in the pay of the bank, so we're more or less going to be the money. . If you can't afford to pay the loan in full, but can afford to make the payments yourself, start doing that and have the other person to pay instead of sending the payments to the bank. Again, you can be the money (at least temporarily) if not paid in time and form, but at least the delay in payment is not shown on your credit report. . If you can't afford to even make payments, you can see if you can find some other bank that is willing to refinance the loan without you as a cosigner. If you can (admittedly not very likely), probably will be in horrible conditions, and his friend, is likely to end up defaulting and losing the car anyway, but at least the existing loan will be paid and the recovery of the possession does not go on YOUR credit. . If all else fails, have your friend do a voluntary repossession (contact the bank and make the necessary arrangements to bring the car to them and hand over the keys) rather than having the bank send someone to come looking for him. He and/or probably wind up having to pay the difference between the amount owed and the fair market value of the vehicle. This is not a great option, but it is slightly better than having the bank repo the car themselves (in which case the difference between the amount owed and the fair market value, it still has to be paid, plus the amount charged by the repo company will also have to be paid). Your friend loses the car, but that was going to happen sooner or later, anyway.

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