co signing for a loan.........

iVillage Member
Registered: 01-04-2002
co signing for a loan.........
25
Mon, 07-28-2003 - 4:40pm
My mom co signed for a loan for my sister. My sister doesnt want to pay the bill. She has the $ but wont pay it out of spite. Now there after mom for the $. Mom is on a fixed income. Can mom hire a lawyer to get out of this or is she stuck having to pay it or be sued?

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Avatar for lucy4980
iVillage Member
Registered: 03-26-2003
Mon, 07-28-2003 - 5:02pm
I don't know, but I would have her check into it. As far as I know, when someone co-signs, they are promising to pay the bill if the primary signer defaults. She might have some legal recource against your sister, but not the loan company.
iVillage Member
Registered: 03-30-2003
Mon, 07-28-2003 - 6:40pm
If your mom does not pay, then she will probably be sued and her credit will be ruined for about 7 years or so. There is no legal way for her to get out of this as it was a legit debt. When your mom co-signed, she was saying that if your sister didn't pay, your mom would. Now that part is coming due.

How much are we talking about here? What was it for? Why won't your sister pay?

It is pretty crummy of your sister to do this.

Ejkdmom Come visit my store: www.leorra.com
iVillage Member
Registered: 01-04-2002
Mon, 07-28-2003 - 7:59pm
I believe it was for $5000 & my sister is doing this out of spite because my mom recently moved out of the house my sister were in with her 4 kids & her husband because my sister & her husband treat mom like trash.
Avatar for leslie2353
iVillage Member
Registered: 03-25-2003
Mon, 07-28-2003 - 11:17pm
NEVER CO-SIGNED for anybody. Lesson learned right here!

Your mom is stuck with the bill, because she made a mistake co-signing. If she doesn't pay, she'll get bad credit, along with your sister. You can get out of debt, by going to Consumer Credit Counseling, where they will pay the full balance, and you make up a deal with them to pay little by little or as much as you can able, until it's paid in full.

A lawyer won't do anything, that means you'll pay a fee AN EXTRA bill, to the lawyer who will just type out a paper with his letterhead, mail it but your mom STILL OWES AND OWES AND OWES. The sooner she pays for it, the less it's gonna cost in the future. If not, there's finance charges, late fees, added to it and it will grow like trees. I suggest, your mom just pay it all off, and get it over with, just write it off as INHERITANCE.

How much is the bill for?

iVillage Member
Registered: 01-04-2002
Tue, 07-29-2003 - 6:19am
The bill is for $189.70 in monthly payments. Mom co signed for the loan assuming my sister would pay it & it was a huge mistake ! Mom is on a fixed income so she can't afford to pay it. The letter that was givin to her was addressed to my sisters husband not my mom.
iVillage Member
Registered: 04-01-2003
Tue, 07-29-2003 - 9:54am
Your sister should be ashamed of herself. I'll bet if she had borrowed the money from a bank, she would be paying off the loan. If I were your mother, I would take her to small claims court where the judge can order her to pay the money. Loaning money to family members often makes them feel as though they don't have to pay it back. Good luck and please let us know what happens.

Dream

iVillage Member
Registered: 03-30-2003
Tue, 07-29-2003 - 12:33pm
What letter? Is your sister's husband on the loan also? I am a bit confused.
Ejkdmom Come visit my store: www.leorra.com
iVillage Member
Registered: 01-04-2002
Tue, 07-29-2003 - 1:52pm
The letter my mom got that says $189.70 is owed has my sisters husbands name on it. My sister & her husband are responsible for it but her husband isn't even working. The bill is basically going around in circles to see who will pay it. When mom doesnt pay for it , the bill goes back to my sister & her husband.
iVillage Member
Registered: 03-30-2003
Tue, 07-29-2003 - 7:11pm
OK, now I am really confused.

Why does the bill have your sister's husband's name on it? Was he on the original loan? Are you sure this is the same debt?

If your sister won't pay for it, and your mom cannot, I have a few suggestions:

1) You pay it and sue your sister. You may never see the money, but you will at least stop your mom from getting her credit ruined. This amount should be small enough to be in small claims court in most states so you won't need a lawyer.

2) Have your mom call the credit company and explain the situation. Tell them that while she cannot pay the whole amount, she can pay XXX per month. Have them write up a new contract. While they may up the interest, it may stop a whole host of problems.

3) Forget about it. Have your mom and sister keep ignoring this. They will keep getting notices. Eventually, collectors will call. Then, the company will write this debt off or sue your mom and sister. Either way, both their credit will be ruined. If your BIL is on the debt as well, his credit will also be ruined. I don't reccomend this option, but it is a choice. The only good thing about this option is that your sister has a whole lot of life ahead of her and ruined credit at a young age is a lot worse than at an older age. Of course, her credit must have been pretty bad to begin with since your mom had to cosign.

Whatever you choose, remember this and don't ever, ever cosign for her when she asks. And trust me, she will ask!

Ejkdmom Come visit my store: www.leorra.com
iVillage Member
Registered: 01-04-2002
Tue, 07-29-2003 - 8:02pm
My sister & husband signed up for the loan but my mom co signed. Thats all. My sister has to learn to pay her own debts ! My sister is really irresponsible with money. Her husband doesnt have a job so he can't pay it. Mom can't pay it shes on a fixed income. My sister is doing this out of spite.

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