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My husband bought a car that his dad co signed for. its about to be reposessed. The bank told him that if they come and take it his dad will take the fall for it. they said they would sue his dad. are they lying to scare him or can they really do that? i had a car repo’d a few years back and never got sued for it.
first of all…his dad said to let the bank take it…he was the primary…not like we did anything to his dad
my father has really good credit. he has 3 cars of his own and a half million dollar house and all are current. i didnt ask for your opinion. i asked a specific question.
father in law*

6 Comments »

1. 

   Yes, if your Dad is primary on the loan, then they will go after him for the remainder of the loan.
   The amount your Dad will be sued for will be the amount owed on the loan plus towing, storage, repossession and admin costs minus the price the car sold for at auction.

   If your Dad is so rich, why isn’t he paying this off? Once the car is repossessed, his credit is going to take a major hit. With the way the credit market is in the US right now, he may have a tough time getting another loan.

   Comment by Stupid Flanders — June 11, 2011 @ 9:02 am

2. 

   They can do that. The agreement signed was for $XYZ and the lender wants all of that amount back.

   Read for yourself using the search function and look in the other gazillions of htreads about repos.

   Comment by alfredb1979 — June 11, 2011 @ 9:02 am

3. 

   That’s what a co-signer is for – to accept financial responsibility when the primary borrower defaults on the payments. That’s not a very nice thing to do to his dad, by the way.

   Comment by Scott H — June 11, 2011 @ 9:02 am

4. 

   What they will actually more than likely do is repo the car take it to auction to sell it. Whatever difference between what they get at auction and what you owe, plus all the fees to get it there and repo it they will more than likely sue for..

   Comment by ksvet — June 11, 2011 @ 9:02 am

5. 

   Your husband and his dad must not care about their credit score, which is damaged for 7 years after a repo. More than likely, the loan balance is more than the value of the car, which means the loan company will sue the primary borrower AND the co-signer for the balance of the loan.

   Comment by nowayout — June 11, 2011 @ 9:02 am

6. 

   Your Husbands Dad took financial responsibility for the payments on the vehicle and the bank wants there $$$$.They can sue him but it is unlikely they would,most likely they’ll just pick up the car and sell it,whatever they don’t get from the sale of the auto they will try to get back from you.

   Comment by Chris G — June 11, 2011 @ 9:02 am

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