Co-signer on car going to be repossessed
I co-signed for a car that the owner no longer wants and is going to allow it to be repossessed. He has stopped making the car payments. I do not want the car. He has trashed the vehicle, it was new, and has been in an accident and has been vandalized twice, not to mention he has not taken care of it at all. Please let me know what I can do to protect myself financially.
1 Answer from Attorneys
Re: Co-signer on car going to be repossessed
Unfortunately, you are on the hook for the loan. You must do your best to minimize the amount you will have to pay. Is your name on the title, as well as on the loan? If your name is on the title, and since he is going to let it be repossessed, I would take possession of the car and sell it for as much as you can get and then pay off the balance of the lien so that you can convey title to someone else. If the car is repossessed you have no control over where it is sold and for how much, and you will be responsible for the deficiency. At least you will have some control if you sell it yourself. If you cannot sell the car then you may find yourself having to either make the payments or call the lender on the car and make an offer to settle the debt. If your name is not on the title, get permission in writing from him to take possession of the car, sell it, and do with the proceeds as you wish. He should waive any interest he has in the car and to any proceeds of the sale. Good luck.
Carolyn G. Krohn