Cosigner delinquent, repo primary's car?

[KRS]

Re: Cosigner delinquent, repo primary's car?

It's called a cross default clause in the default description on the note.

Yes, it's legal... and yes, it sucks.

There is NO DIFFERENCE between the primary and a co-signer... NO difference at all. There is a difference between a borrower and a guarantor; but no a co-signer.

I've been a banker for 16 years now.

Here's an example:

A parent has their car loan with you.

The parent co-signs a car loan for their child.

The child goes delinquent and you call the parent and ask for a payment.... and the parent says I'm not going to help them ! The bank says "Yes, you co-signed, please make it current." And they still say no. Call BOTH loans in default and get their attention. Increase the note rate to the default (22% here typically) and see if they begin to understand what "promise" means in "promissory note".

I hope they get it resolved and move on.

KRS

 

[Tyme2fish]

Re: Cosigner delinquent, repo primary's car?

By B.I.L wanted me to co-sign some sort of loan years ago. The bank didn't trust him and I didn't either.

Went to the bank with him and talked to the loan officer in private and said, "I don't want to get on the bad side of B.I.L but I don't want to co-sign this loan. Can't you just deny his loan? That's what happened. Made me look good and the bank bad.

 

[JRJ]

Re: Cosigner delinquent, repo primary's car?

Whats the difference between a credit union and a bank?

 

[gss036]

Re: Cosigner delinquent, repo primary's car?

Federal regulations that they operate under. Most if not all credits unions are member owned and have a member elected board of directors. Most are consider non-profit so all the revenue goes back into growing the business. That is the basics.

 

[johnphilips]

Re: Cosigner delinquent, repo primary's car?

Whats the difference between a credit union and a bank?

Hi,
Yes, I agree with gss036. The main difference between the Credit Unions and banks is banks are for profit and Credit Unions are not for profit.


John Philip
edit: removed link TD