Never do this! I don't care if it's for Mom,just don't ever consider doing this . I am speaking from experience here,folks. This 3rd time,I am stuck with a bill for 10 thou-all thanks to a family member again.
Co-Signing A Loan
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Well, see, that's your problem... you co-signed a loan for a family member. Never do that. Strangers are perfectly reliable though, and I have a few renos I'd love to get done.............
I co-signed for my little bro once, but I had him sign a piece of paper stating that I got his car if he defaulted. I have no idea if it was legal or not, but it kept him honest.
My weirdest co-signing story ever? A co-worker of a friend asked me to co-sign a loan for his girlfriend. I'd only met this twice and had never met his girlfriend at all. He seemed disappointed when I said no.
My weirdest co-signing story ever? A co-worker of a friend asked me to co-sign a loan for his girlfriend. I'd only met this twice and had never met his girlfriend at all. He seemed disappointed when I said no.
Re: RE: Co-Signing A Loan
Love to help you out, but I'm just about tapped out!LadyC said:Well, see, that's your problem... you co-signed a loan for a family member. Never do that. Strangers are perfectly reliable though, and I have a few renos I'd love to get done.............
I've had people co sign for me and never let them down. my mistake was in believing my children inherited my sense of honor and honesty-I guess they take after their mother instead.
My dad co-signed for me a couple of times. I never let him down. Well, not that way, anyhow. ;-)
Security Interest / Lien
Any contract can include a security agreement. This security agreement is enforceable as long as it is signed by all owners of the security have signed the agreement. If is recommended that the security agreement be registered under the provisions of the Personal Property Security Act. The purpose of registering the lien is so that the vehicle appears in the registry system where a search can be conducted if the vehicle is sold and so that it appears in the used vehicle package provided by the MOT. In the event the vehicle is old with a registered lien on it, the buyer cannot get clear titile as long as the lien exists. The other reason for registering the lien is so that the vehicle cannot be pledged as security for another debt or vest in the trustee in the event of bankruptcy.
Any contract can include a security agreement. This security agreement is enforceable as long as it is signed by all owners of the security have signed the agreement. If is recommended that the security agreement be registered under the provisions of the Personal Property Security Act. The purpose of registering the lien is so that the vehicle appears in the registry system where a search can be conducted if the vehicle is sold and so that it appears in the used vehicle package provided by the MOT. In the event the vehicle is old with a registered lien on it, the buyer cannot get clear titile as long as the lien exists. The other reason for registering the lien is so that the vehicle cannot be pledged as security for another debt or vest in the trustee in the event of bankruptcy.
Neither a borrower nor lender be. Never loan money to family or friends. If the amount is small and you can afford to, give the money to them without any strings attached. What comes back will usually be more than just the money.
I've done it for my son and will for my daughter. But only once. Dad will give you a leg up. You're are on your own after that. Worked well so far. It's a situation that some can just take advantage.:smile:
My mother cosigned my line of credit. It's allowed me to study without too much worry over finances. She pays the interest every month, and just this weekend told me she wants to make sure I have the lowest debt possible. Obviously I will be paying it off when I'm out of school, but she has no intentions of making me pay her back what she has put in already.
Co-signiung generally doesn't affect an interest rate. When I used to loan money, and parents would insist on something like a credit line to be co-signed, I would recommend they become the primary applicant and the other the secondary loan applicant. That way it's their loan (which it is anyway if they co-sign), the other party has a legal obligation to the loan and the rate will be improved.
Unfortunately a great many co-signed situations are the result of past credit issues, debt consolidation or vehicles (negative net worth issues or depreciating assets). There are often a few red flags to make one give it a second thought.
Unfortunately a great many co-signed situations are the result of past credit issues, debt consolidation or vehicles (negative net worth issues or depreciating assets). There are often a few red flags to make one give it a second thought.
That's fine, unless you need, say, a house, or a car.
Never cosign for a loan UNLESS you are willing and able to come up with the total amount owned. That's the chance you're taking.