co-signer can't find the one who loaned the money, what should she do?

Question

have a pal who co-signed for a car loan due to her family's pressure. The car owner left the US and he gave the car to her daughter. Daughter is NOT paying anything to the bank. Bank now goes after my pal - the co-signer. Some say, legally my pal is now the real owner of the car. My pal is willing to pay it off (and learn from her mistake) but what's the right thing to do? Can she tow the car? Police? HELP!

Answer 1

Your pal has no more right to the car than she did the day she co-signed. If her name is not on the title, the only right she has is to fork over the money SHE borrowed. The bank never expected the owner to pay. That is why they required a co-signer.

Answer 2

Your friend is in a tough spot. Cosigning for a loan has absolutely no up side and this is a prime example. Your friend has no legal right to the car. The car was not registered to her. She was not on the title. She does not insure the car.



The only thing that your friend has done is tell the bank that should something happen to the primary borrower, she will cover the loan. And that's exactly what is happening. Since the original borrower is gone, the bank is looking to your friend to provide payment.



She really has very few choices here. Should she not make payments and the car is repossessed, that default will be on her credit for many years and make it impossible for her to borrow. If she makes payments, she is going to be out a lot of money. Unfortunately, this is what she signed up for.

Answer 3

Well, the family member has stiffed her and left her to cover their loan (as she is required to legally as cosigner) so she can do whatever she wants to with the car.



She needs to contact the lender immediately, and explain the situation. Then she needs to make a payment as an act of good faith. Then, she should see if she can sell the car privately to make some money to cover the debt. This should get her more money than just allowing it to be repossessed, but she will need to keep making payments while she is trying to sell it.



She now owns the car. She is 'jointly and severally liable' to pay. She MUST make payments on the loan, and get the situation under control, or her credit history will be ruined. When she has cleared the debt, she needs to get a credit card with a low rate, and make a regular purchase with it, and then repay it immediately. Do that for six months or a year, and her credit history should start to recover.



Best wishes

Answer 4

the owner might of given the car to his daughter but as long as there is still money owed the co signer is obligated to pay. i would contact the bank in which the loan was made and see if there is any options

Answer 5

Your pal is not the owner, just the one who guaranteed the loan would be paid. Let the car be repossessed

Answer 6

She can absolutely repo the car.

Its hers. Tell her to have it towed. She may have to pay to have the locks changed unless she can get the keys from the daughter.



Good luck