I'm glad I could be of help.newboggler wrote:Thanks for sharing this info...very helpfulASUGrad wrote: Where is the loan held? Call them ASAP! As a co-signer you can get information on the status of the loan. Is it up to date? How much is left on the loan, don't trust him that its 15k. When are payments due? Start calling monthly to make sure the payment is paid. You might consider asking them to contact you if a payment is ever late but... don't trust them to actually do this, most banks don't bother hounding over an auto loan till its already past 30 days. Also ask about the process to get the loan refinanced into only your name. He would have to sign off on that, but its good to have an idea.
I called bank and found out all info as you mentioned.... All payments are on time and amount due is $14.7K. Bank also helped me setup online id to access this account.
My friend is a nice professional guy who got into this big medical/legal bill which he would not be able to possible pay ever and so his lawyer suggested filing bankruptcy.. Friend was nice to tell me this all and also told that he would take care of loan before filing bankruptcy. It's unfortunate for him.... And I wanted to get out of this loan and be there to support him emotionally ..of course not cosigning anything for anyone ever!
Thx all for input...very appreciated
On the note of the car being worth more than the loan... don't assume the finance company will actually profit and forgive the loan if they have to sell it. They will sell it at auction and likely get a lot less than its worth, and either way it would show as a repossession(even if voluntary).
I'm not a bankruptcy expert but it appears we have a few people who have read up on it. If it turns out him paying the loan off before other debts would be a problem I propose a plan B. Have him 'sell' the car to you, and have the bank refinance the loan in your name. You keep the car, and the loan is only in your name. Now sell it and use the proceeds to pay it off.
Again thats a plan B. Plan A is he can pay off the car without legal ramifications or even sell the car himself. I'm just saying in a worst case scenario it should be an option. Even if you might have a hard time qualifying for the loan by yourself the bank would rather have a less than desirable loan instead of a bankruptcy loan. While I was at the bank I saw this play out a few times where I couldn't give someone a loan to refinance a debt, but our recovery department could get something approved in no time if the alternative was a default.
Meaty, let us know if him buying the car would also be a legal problem.
EDIT: Something else just occurred to me. In many places in order to be on the loan you have to be on the title. Are you on the title to the vehicle? That might change things a little bit so it would be good to know.