I cosigned for a car loan .it is secured since the car itself is a collateral?
Answers:
When you co-signed, there was a form you signed that would have been titled "Notice to Cosigner" which states if the primary person does not pay the loan, it then becomes your responsibility as well. If it was repo'd, then it will be sold at an auction and both parties will be responsible for the difference. Either way, it will become either an I-8 or an I-9 on your credit report which is bad. This is the case is most states, however if you let us know what state you are from, it might make a slight impact on your obligations. I hope this helps.
Your stuck with it. A rule to go by...NEVER ever co-sign a loan unless your prepared to pay the entire loan. A bummer way to learn that though.
The loan company really has no recourse against you other than the blemish on your credit report. They technically cant make you pay for the car. But yes, if I were in your shoes I would give the loan company a call and tell them where the car was. All so, if you cant make the payments on a car surrender it. It is not the same as having it repo'ed. When a care is repo'ed you have to pay the balance on the car after it is sold at auction. If you surrender it, it is a done deal.
The creditors can still seek payment from you! Where is the car, does the primary loan applicant still have it or is it in your possession. If you have it, talk to the lending company and see what they will settle for. Realize that it its badly damaged or far below its usual 'book' value, they may not want it but will expect you to pay. Good luck.
You can make up the missed payments. If you don't, your credit score will take a MAJOR hit.
Sad fact is, since it's been a year with no payments, it's almost certain that it's already been repo'd and your credit is already trashed.
NEVER co-sign for ANYONE! I won't even co-sign for my kid. If the other party doesn't pay, the loan company WILL come after you and you WILL have to pay! Ignore the fool that said you don't - he can co-sign for me anytime! LOL
They get the Car and you get bad credit.
I co-signed for my son and he missed 7 payments that I had to make and I finally sold it and protected my credit. IN your case you never had an option to pay...it's a default on the plaintiff and you find out when you get back a bit too late. So pay it off or give up the Car and either way your credit is shafted now.
Unless the rules have changed and in your case, I hope they have, you will be responsible for the car payment and if you turn it back in, your credit will be damaged as well as the other persons. In the future, be cautious about co-signing and if you do, keep up with it. It is as much your business as it is theirs.
The Secured Loan information post by website user , LoanSecuredLoan.com not guarantee correctness.