Ever co-sign a loan and you wind up paying?

[allison443]

WOW - thanks for all the replies

I can't answer all ques. as I'm packing for disney but to try and answer a few:

It's my mother in law - late 70s
Loan was a school loan for her granddaughter.
Noone knew she co-signed or we would have insisted she not
I told my DH we need to take a trip to where g.daughter lives - it's in another state but only a few hours away.
This all just came to light two days ago when my DH called his mom. It's really just starting to sink in.
I feel mother in law is stuck - she signed the papers but honestly I don't think she would have the $ to pay it all back. She said she totally trusted the granddaughter.

Since we're leaving for Disney soon I think unfortunately any help from us has to wait until we get back.

I appreciate all your input.
Mary

Is the granddaughter the daughter of one of your dh's siblings? Does that sibling know what is going on? Is the granddaughter working and able to pay, she just refuses to?
I hope everything works out.
Have a good trip!

 

[mamamary]

Is the granddaughter the daughter of one of your dh's siblings? Does that sibling know what is going on? Is the granddaughter working and able to pay, she just refuses to?
I hope everything works out.
Have a good trip!

Yes - she is a daughter of dh's sibling. Gdaughter is a nurse apparently making good $ - unless there is stuff we don't know about.

thx - will def have a good trip.

 

[Handbag Lady]

The whole family needs to be told in case she tries it again with anyone else in the family.

Then, the whole family needs to come down on the granddaugter for being a jerk. Perhaps shame will get her into gear.

 

[eliza61]

Yep, did it once. got burned and never ever do it again.

I signed on an apt lease for my college buddy one year. Of course she promptly fell "in love" with an idiot, trashed the apartment, snuck out and left me holding the bag for $2500 bucks.

That was over 30 years ago and I've never done it again.

 

[Mandychelle79]

my parents have co-signed for me in the past, I always pay the loan payments. Actually just paid off my car a few months ago. My grandparents co-signed for my cousin. My parents ended up buying that car to keep my parents for needing to ruin their credit because of my cousins addiction. My parents then gave it to another cousin as a birthday present.

 

[DisneyBamaFan]

I also did it once and will never do it again - 23 years ago - a car - was repossesed and sold for $6k less than was owed (I was not notified until after the car was already sold at auction - was deployed in the Army). I had to pay it back and the judgement ruined my credit for 7 years, even though I paid it back.

 

[Gigi22]

DH co-signed a mortgage for one of his sisters several years ago. Every year she sent us an entire year's worth of postdated cheques for us to deposit to cover the loan. Fortunately she is a very responsible person, and there were no problems. I don't think either of us would ever co-sign a loan for anyone ever again.

 

[ZachnElli]

Yeah, dh co-signed a car loan for his parents when we were first married. They made the first 3 payments and we ended up paying the next 2 years and 9 months worth of payments. He couldn't/wouldn't take the car from his parents. I was enraged when we got a letter from the bank saying they dropped the insurance on the car and they were making us pay for the forced bank car insurance! So car payment and car insurance, we'll never do it again!

 

[Tiggerish]

It is very important that she does not sign anything else until she get to talk to a good attorney. Because she may be able to fight having to pay. I know it sounds nasty but if her income is social security, they cannot garnish that and she may be able to get a senior citizen advocatee to help her defend herself if they sue her for the non-payment.

 

[Tuffcookie]

OP, Since this is a granddaughter involved, your MIL probably wouldn't dream of taking her to court for the money. If your MIL accepts this debt, then maybe your DH and and any other siblings (other than the mother of this granddaughter) could urge her to rewrite her will. Your MIL can take that into account when dispersing her estate.

I'm not sure how much the loan was for but...
If your MIL has a house, she could mention that she was leaving it to your DH and the other siblings. Just make sure it is worded in the will that she took care of the MIL's daugther, daughter's bill and that is the reason the daughter was not left a portion of the house.

Is this the daughter's fault? NO but I would be mortified if any child of mine did this to my mother!

TC

 

[Art 1]

Yes.

 

[dicar123]

My parents co-signed a loan for mom's sister (used as an education loan for her daughter). Mom didn't trust the daughter, but did trust her sister. Several years after the re-pay period started, my aunt's financial situation changed and my mom clearly explained that she understood how tight things were, and told her if she ever had trouble meeting the payment, to just call and let them know. It's cheaper for everyone to keep the loan current.

About once every year mom would get notice that the payments weren't being made and she would bring them back to current. It was ALWAYS the banks fault, she was making the payments, aunt said.

No, the daughter never graduated, never paid back her own loans, and can't return to school because she owes the university money as well.

 

[DebbieB]

My aunt co-signed a car loan for her granddaughter and got burned. The bad part was she went behind her son's back to do it, so he would not help her with it. Her granddaughter had her wrapped around her finger and knew it. My aunt even paid for an abortion for her after allowing her boyfriend to live with her in my aunt's house. Meanwhile, the granddaughter could not hold a job. My aunt's son did end up getting stuck with her debts because she took out a home equity loan on the house they shared. She died about 3 years ago and he's stuck paying back the loan or lose the house. The granddaughter did straighten out, she got married (not to the same guy) and has a child now. Although I heard they are over their head in the house they bought.

 

[MrsPete]

That's why Dave Ramsey says to NEVER co-sign a loan for ANYONE. If someone needs a co-signer for a loan, it's because the bank doesn't think the primary loaner will pay it back.

I am completely neutral on Dave Ramsey, but I disagree with this statement.

When I was in college and needed a first car, my grandmother co-signed for me. She explained that that was a one-time thing: If I made my payments, I'd never need a co-signer again, and if I didn't do it, she'd never help me again. I intend to do the very same thing for each of my children.

Loan was a school loan for her granddaughter.

I wish it were a car, which could be reposessed. It's hard to take back knowledge.

Yes - she is a daughter of dh's sibling. Gdaughter is a nurse apparently making good $ - unless there is stuff we don't know about.

thx - will def have a good trip.

So she's out of school and working . . . can you take her to court and have her wages garnished? Can you threaten to put a negative mark on her credit?

One more thought -- a rather morbid thought: Does grandma have much money? Is any of that money (or property) supposed to go to the granddaughter upon her death? I'd re-write the will to remove the exact amount of the loan (plus interest).

 

[mamamary]

Again, thanks so much for all the replies. To quickly answer some questions:

- yes mil lives off social security
- she just rents an apartment
- only thing she owns is a car which has got to be about 13 years old or so
- she does have a will but it is basically just some "stuff" she has around the apartment
- she has a small nest egg - est. only to be around $10,000 or so

Not that I wish I wasn't going to Disney next week cool1 but I feel bad we can't jump right in on this to help.

She really trusted the granddaughter. As someone mentioned about wages being garnished - I'm surprised the "loan people" didn't go after the granddaughter at work - or did they??????

So many questions still need to be answered.

Thanks again everyone.

 

[AnnaS]

I co signed a loan for my son when he bought his first car. He definately needed a reliable car for work and school and just starting out he had very little credit. He has not missed one payment in 2 years. I do not regret helping him out him at all.

Same exact thing here - only I co-signed for two sons about a month apart. Both are living at home. They actually pay me and I make the payment for them. Almost two years, not late once. We have actually mailed extra payments.

I would only do this for my children and not for everything/anything either.

I am sorry to hear this happened to her.

 

[Lisa_M]

Just throwing this out there in case Grandma hasn't talked to Granddaughter about this situation yet. My parents co-signed on a student loan for me with Citibank. I've been paying it on time for year. Dad starts getting bills from them with amounts due. So he calls me up and asks why I'm not paying and he's getting the bills. For some reason, they started billing him, "in case I did not pay." So after 3 phone calls I got them to stop sending the bills to him too.

My suggestion is for her to talk to the granddaughter about it now, if she hasn't yet. Maybe it's a misunderstanding. Otherwise, your MIL should talk to the parent of the girl and see if they are willing to pay for their child or light a fire under her to get her to pay.

 

[mamamary]

Just throwing this out there in case Grandma hasn't talked to Granddaughter about this situation yet. My parents co-signed on a student loan for me with Citibank. I've been paying it on time for year. Dad starts getting bills from them with amounts due. So he calls me up and asks why I'm not paying and he's getting the bills. For some reason, they started billing him, "in case I did not pay." So after 3 phone calls I got them to stop sending the bills to him too.

My suggestion is for her to talk to the granddaughter about it now, if she hasn't yet. Maybe it's a misunderstanding. Otherwise, your MIL should talk to the parent of the girl and see if they are willing to pay for their child or light a fire under her to get her to pay.

I see what you're saying but granddaughter will not return any phone calls - she will not talk to grandmother. Getting $ from this kids mom would be like getting $ from a rock - it's just not gonna happen - she has no money.

 

[mrsklamc]

The majority of the time (don't remember the exact percentage but I think it is 75) the co-signer ends up paying.

There is no legal action for grandma to go after gd. When grandma co-signed, she agreed that she would pay if gd didn't.

 

[agnes!]

I still think the extended family ought to set up a sting.

After your trip, I would go all PI on the deadbeat relative. You can find out a LOT of things on the Internet. Make sure she's got that good job, see what kind of house/apartment she's living in. And if you're really feeling feisty confront the financial sociopath on her own turf, make sure she knows that she is burning bridges with EVERYONE. Sounds like she doesn't *care*, but having an intervention of sorts might wake the witch up from her selfish actions, she might not have thought out all the consequences.

I would also talk to a good elder-law attorney. As a poster up-thread commented, sometimes if the only income is government subsidies then G'ma might not possibly have to pay back the entire amount. But if she *does* have to pay it all back, if G'ma's other relatives are as horrified by the nurse-relative's behavior as you are, then maybe everyone can pool their $$ to pay off the loan.

I can't remember...what was the loan *for*? If it was money for a car or an item, I would also talk to that attorney to see if the family can go take the car or item back, deny The Selfish Nurse-Relative any benefits from use of that item.

It's an awful thing, what family can end up doing to each other. We are often the cruelest to those we should love the best....but I have to say, is anyone in the family surprised by Little Miss Selfish's actions? This is just the usual with her, right?

agnes!