screwed by cosigning for car loan
 

My sister-in-law cosigned a car loan for her son. He has recently moved from NJ to Colorado and is not longer making payments. My SIL is in the process of trying to buy a house and this situation is screwing her credit big time.
The son claims to be looking for a cheaper car so he can "dump" the car he's driving but, this is moving at a snail's pace.

Could she, legally, have the vehicle repossessed and returned to her so she could turn the vehicle back in or sell it off? What are her best options to get this resolved so it doesn't do anymore damage to her credit?

I know she should have never cosigned in the first place but, you can't tell some people what they don't want to hear.

Re: screwed by cosigning for car loan
 

Nope, she is pretty much screwed. By consigning, all you are saying is that you are responsible for the loan if the signer defaults.

Re: screwed by cosigning for car loan
 

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Dave Rifkin</div><div class="ubbcode-body">I know she should have never cosigned in the first place but, you can't tell some people what they don't want to hear. </div></div>

....and there you have it [img]<<GRAEMLIN_URL>>/frown.gif[/img]

I suspect many of us know someone who has been screwed over, to varying degrees, by their own children. So sad.

Re: screwed by cosigning for car loan
 

First thing, She needs to contact the loan co. ,,immediately ,,and make the payments herself on time so no more pmts .are missed, then have him pay her. If he isn't paying her she can repo. it from him and sell it herself.
I had this happen to me many years ago when I co-signed for my nephew,,,seems they forget to tell anyone they missed their payment until you get the late notice.

Re: screwed by cosigning for car loan
 

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: miket1</div><div class="ubbcode-body">First thing, She needs to contact the loan co. ,,immediately ,,and make the payments herself on time so no more pmts .are missed, then have him pay her. If he isn't paying her she can repo. it from him and sell it herself.
I had this happen to me many years ago when I co-signed for my nephew,,,seems they forget to tell anyone they missed their payment until you get the late notice. </div></div>

Thank you; I will pass that bit of advice to her in hopes that she can get it resolved. Personally, I thought she was completely screwed but, at least you have offered a possible option for her.

Re: screwed by cosigning for car loan
 

Yes, agree that she should call the bank or finance company and make up any past due amounts on the car, so that her home loan approval would not be in jeopardy. Of course by co-signing the loan it will be included in the debt ratios the bank will look at when underwriting the home mortgage.