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    cosignterror's Avatar
    cosignterror Posts: 3, Reputation: 1
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    #1

    Jan 10, 2006, 03:19 PM
    Co Sign Trouble
    Several years ago my grandmother was nice enough to co-sign a loan for me a new car. Five years later I'm only 3-4 months away from paying it off, and I've had a couple late payments, but nothing over 30 days.

    Last October she was asked me to do the same for her. I was reluctant because I was trying to get out of debt for myself and because she's old. Well I decided to co-sign the loan and then my grandfather passed away. Now she couldn't afford the payments so my father decided to unofficially take them over.

    I got a call from the Finance company today that said it was 90 past due and if something wasn't settled soon they were going to repo the car. Well I asked why they call me and not my grandmother since she was the original borrower. The finance company said I was the original borrow because sometimes the dealership will swith co-signor to original in order to get the best rate. Well now I'm screwed. Can they do this and what should I do to help. I sure can't afford to take on these payments every month. Is there anything I can do to keep my credit rating from dropping below what it already is?
    talaniman's Avatar
    talaniman Posts: 54,327, Reputation: 10855
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    #2

    Jan 10, 2006, 03:35 PM
    Now that you know the downside of co signing you have almost no choice but to reconcile this note.In the u.s. they usually sue both co-signers equaly until it is paid and a repo can cost you a lot more as they make you pay the difference between the original note and what they finally sell the car for!You could return it but your still on the hook for any fees or penalties they see fit to put on you.I had to take out a loan to pay off a brother in laws car and never got repaid so I feel your delema however talk to your grandmother and see if between the two of you can find a solution.Good luck:cool:
    cosignterror's Avatar
    cosignterror Posts: 3, Reputation: 1
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    #3

    Jan 10, 2006, 03:42 PM
    Thanks Taliniman
    Although it was not really what I was wanting to hear, I appreciate the reply. I am in denial in that I know this is only going to be bad for me, but I'm trying to pretend it didn't happen. I know that's the worse thing ever. Sometimes I feel like every catches a break but me.
    talaniman's Avatar
    talaniman Posts: 54,327, Reputation: 10855
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    #4

    Jan 10, 2006, 04:38 PM
    Ha ,so you think you're the only one who wishes they can catch a break,I could make your hair curl!Don't get down though as I'm sure you will find a solution to your problem the trick is when you've made a mistake and finally correct it DON'T do it again.wish I had known that years ago because I got caught up in the co-sign things 4 times and it was no fun either. I was lucky enough to get a loan each time but still every time I had to pay that note I cursed my stupidity.Have I learned my lesson?Just co-signed for my daughter to get a new car!Stick a fork in me I'm so done! :cool: :eek:
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Jan 10, 2006, 08:02 PM
    Co signer
    Even if you were still or "just" the co-signer, what you are promising as a co signer is to pay the debt if the original debtor does not.

    So unless you pay, if they don't, they will bill you, take the car and sell it, then bill you for what is still owed, get a judgement perhaps, garnish you check.

    They will come after who ever has the money to pay.

    So everyone, never co-sign unless you can and are ready to pay the debt yourself.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #6

    Jan 10, 2006, 09:32 PM
    I am assuming here your grandmother died with no assets.

    Because all of her assets should have been sold off to pay all these creditors.

    If the Exectuor (your parent or aunt/uncle perhaps) did not do this, you should look into it.
    talaniman's Avatar
    talaniman Posts: 54,327, Reputation: 10855
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    #7

    Jan 10, 2006, 09:46 PM
    I missed something when did gmom die:cool: :cool: >?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #8

    Jan 10, 2006, 09:50 PM
    Quote Originally Posted by talaniman
    I missed something when did gmom die:cool: :cool: >?
    I misread that...

    Quote Originally Posted by cosignterror
    Well I decided to co-sign the loan and then my grandfather passed away.
    I thot that said my grandmother passed away.

    My bad.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #9

    Jan 10, 2006, 09:55 PM
    After re-reading your post, and noting that your grandmother is still very much alive (and again, sorry about misreading that)...

    She is responsible. However, if she does not pay them, they have the legal right to come after you to pay (since you co-signed). You basically promised to pay them if she didn't.

    Talk with your grandmother, see how she can pay it. Perhaps she should look into selling some of her assets or perhaps selling whatever she bought from this loan. Was it some kind of vehicle? In which case, perhaps a cheaper one will do.

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