I am a co-signee for a loan and the beneficiary is defaulting on the loan payments.

vishenda · #1 (**permalink**) 10-07-2006, 09:35 AM

I am a co-signee for a loan and the beneficiary is defaulting on the loan payments. How can I make him pay?

Ima saver · #2 (**permalink**) 10-07-2006, 11:06 AM

A baseball bat?

Ima saver · #3 (**permalink**) 10-07-2006, 01:11 PM

Unfortunately you will now have to make the payments. Never co sign with anyone, even your mother, unless you plan to make the payments. The fact that they need a co signer shows they do not have good credit yet.

PRICEPLUS · #4 (**permalink**) 10-07-2006, 01:16 PM

Read all the fine print on the loan agreement as a start. Do you have some sort of agreement in writing about him paying you back? You might look into taking him to court to recover your money. Your situation is why I would be loathe to co-sign a loan of any sort. I am very sorry about your plight!

Mathew Green · #5 (**permalink**) 10-07-2006, 06:10 PM

Three of the Universal Rules To Live By:

Never loan anything to anybody if you're not willing to give it to them as a gift -- especially money.

Never co-sign a loan for anybody if you're not willing to give them the total amount of the loan as a gift.

Loaning money to a friend is one of the quickest ways to lose both your money and your friend.

I'm sorry you've had to learn this the hard way.

I hope you're not on the hook for too many dollars. {{{hugs}}}

Mathew

Snoopy2645 · #6 (**permalink**) 10-07-2006, 10:18 PM

can you hunt them down in this type of situation & take the car or whatever would that be legal??

PRICEPLUS · #7 (**permalink**) 10-07-2006, 10:58 PM

It all has to be done through the courts I am afraid!

Ima saver · #8 (**permalink**) 10-08-2006, 09:43 AM

And that usually costs you money!

Mathew Green · #9 (**permalink**) 10-08-2006, 06:21 PM

Quote:

Originally Posted by Ima saver

And that usually costs you money!

And unless you've got something in writing that says you'll own [whatever] if you have to take over the payments, all you're likely to get from the court system is a 'judgement' which says they have to pay you the money. When they fail to pay, which they probably will, you have to go back to court for an order attaching their property, wages, or whatever to settle the debt. It ain't easy and it ain't pretty.