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How Do I Get Out Of This Co Sign Mess?*

So a couple years ago I was in a relationship with a female that had bad credit, she wanted to get a car and I was vaginally whipped. So me being the great boyfriend that I was co signed on a car thinking nothing of it, at the time I didn't know what a co signer was, I thought it would just help her get the car easier, and obviously the dealer didn't give all the details because he was trying to make a sale. Eventually me and her break up, and I move on with my life, totally forgetting about her and leaving her and all her drama in the past. Until today I get a phone call from a 310 area code I pick up and it's a bill collector telling me I owe 4,000 dollars on a vw jetta I'm like you must have the wrong number because I don't own a vw jetta. So I have to verify all this information yadda yadda yadda whoopty whoopty woo, come to find out this chick hasn't been paying her payments, and doesn't even live in the same area anymore. Now I'm fully responsible for paying off the rest of the loan and I want to kill this chick. A person who signs his or her name to a loan agreement, lease or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan or debt. Has anyone been in this situation? I heard there is a way to change each dollar to 65 cents or something?

Answers:

1) Yes you are just as responsible for the payments as the borrower. As far as 65 cents on the dollar, it depends on what the bank is willing to settle for. At this point your credit is already shot and there will be a charge off or collection on yours (and your girlfriends) account. Good luck and never cosign for a girlfriend again, and don't get whipped either.

2) Yes - a cosigner is someone who is responsible for payment if the primary applicant defaults on the loan (misses payments, stops paying all together, etc). Since you signed as co-signer & she has stopped paying, you are responsible since you signed saying you agreed to be responsible for payments. Since this has already gone to a bill collector, you might pull your credit report (all 3) as you'll probably see the bad credit loan listed on your credit report as bad payment history/credit. Which may already be affecting your own credit score. You might try working something out with the bill collector, some type of payment plan, and then try to find the ex to get reimbursed or once car is paid, have title sent to you in your name only, and then report car stolen? Thats probably what I would do :) Or file a civil suit against the ex. I never have cosigned for anyone, even family, for that exact reason. I refuse to be responsible for someone else's bills/payments when they default.

3) First, If you could find out where this girl lives, you can have the car repo'd. Then sell it on e bay or just put an add in the paper. Make sure you sell it "as is". You should bring the account up to date until you decide what you are going to do.

4) This will affect your credit. Ouch. Best thing to do is pay it off if you possibly can. You can try to negotiate with the collection folks for a lower settlement figure. Then sue her to try to recover the money. You might have to force her to sell the car (that you would now own a portion of) and split the proceeds with you. You can go to small claims court for suits of less than $5000. But you need to stop this thing from getting any worse on your credit or it will cost you more money in the future when you need a new car loan or mortgage. As the co-signer, you are legally on the hook. It's time to look into ways to minimize the damage. Deal with the creditor and then deal with recovering the money from her. Sorry to hear about this. Situations like this are always on those daytime court shows......money and friends/family/girlfriend/boyfriends just don't mix.

5) You cosigned and "didn't know what a cosigner is"?? Now you are learning the hard way. Sorry to say, you are legally liable for the debt.

6) looks like she hurt u good .only other way i can think is to let them repo and u pay the difference when the bank sells it. might .but other hand it well efect ur credit .

7) You're screwed. You owe money on a car you can't find that's being driven by a girl you don't want to find. LIFE LESSON: NEVER COSIGN A LOAN. You have two choices: 1) repay the loan that you promised to repay when you cosigned. 2) default on the loan, and trash your credit score. "I heard there is a way to change each dollar to 65 cents" That's called a negotiated settlement, where you and the collection agency agree that you will pay less than what you owe in return for cancelling the debt. FICO treats this as if you had the car repoed. Collection agencies don't like this, becuase they figure if you are willing to settle for 65 cents, you can probably pay 67 cents, and so they'll still try to hound you.

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