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Readers Respond: What Happens When You Co-Sign

Responses: 21

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When a friend or family member asks you to co-sign, the loving part of you tells you there's nothing wrong with it, that you should do it. Too often, co-signing ends in disaster and most often for the person who co-signed. Did you co-sign for someone and get screwed over? Share Your Story. Tell Your Story

$70K in co-signed loans for daughter

Long story short: I'm a divorced father of five. My eldest daughter goes to college and needs student loaned. I cosigned for three loans totaling around 20 grand. Two years later, this daughter needs car. I cosigned believing she wouldn't get this loan. Six years later, I've re-married, did a short sale on my home of 12 yrs. My daughter didn't pay for the car or student loans, which are now at 50 grand. T have no idea how it got to that. Then I found out that I am the primary on the auto loan. WHAT?! I called the title holder of the auto loan and suggested they repossess the car. They claim they can't unless my daughter agrees to it. RIGHT. Called to get my name off the student loans and guess what? They can... after I pay 40 grand of the loan. My wife and I can't buy house. I can't help the other children go to school. My credit is totally jacked, but my daughter has her car, her job, her happy life and I am footing a 70 thousand dollar bill. NEVER EVER COSIGN!!
—Guest tim

Screwed on Refinance

I re-financed a home with my sister not knowing what I was doing. We have two mortgages one that's owed for 3 months and the other I believe has never been paid because she said she didn't know their were 2. So, to make this story short she has been in court and fix one of the mortgages but it keeps being sold. So after a modification was finally approved, they upped the mortgage again (worthless time spent in court). Now the second mortgage is being handled by a creditor who does't quite identify itself and it's still not paid. My dilemma: she wont consider a short sale or giving the keys back to the lender. She told me to file bankruptcy but this is my only debt and what the lawyer advised me to just try to fix my credit. How the heck am i supposed to do that when the mortgage is not being paid. By the way, I haven't lived there for the past 8 yrs and I did a quit claim.
—Guest Lulu

Co_signed on Parents's Home Equity

My parents were elderly (80s) and I co-signed on their home equity loan in order for me to get a little home right behind them and take care of them. My niece and her worthless Baby's Daddy moved into my parents house and took advantage of them by stealing money out of their account by getting Mom's ATM card while she was sleeping. So, anyways. my parents both died...they owed more on the house than what it appraises for (Bank of America) and while Mom was still alive we tried to do a Short Sale and then a deed in leiu of foreclosesure. The piece of property I was living in sold for 15 thousand which was used to help Mom when she went into an assisted living center. She passed away before the shortsale was completed (started the process two years before she died). Now my parents house is vacant and My wife and I live in a different city. Not sure what is going to happen when all of this is done. Never co-sign, even under the best intentions. Never know what is going to happen
—Guest Mike

Never Co-sign for anyone! Not even Mom!

My mom asked me to co-sign for her for a loan I was iffy about it at first because she always gave me a hard time paying me back and she has a history of never paying bills on time, but I figured maybe she changed her ways and she's my mom. So I wanted to help her out. I co-sign the loan and 2 months later I get calls from the loan company saying my mom hasn't paid them. To make matters worse my mom lied saying that she was. Since I knew she would never make a payment I had to pay it off with my line of credit so I could have a lower interest rate and and lower monthly payments. Today i'm still paying for it, but at the rate i'm going it'll be finished in a year. At the age of 22 I refuse to let my Good Credit go bad. People, please, DO NOT co-sign for anyone INCLUDING family no matter how much they beg. You'll just get screwed in the end it's not worth the headache.
—Guest Nicole

Daughter Ditched Debt

My husband co-signed a credit card with his daughter for $2k limit. A year went by and the credit card called my husband informing him that his daughter had missed a few payments. My husband was surprised because his daughter is a teacher and earning $80k a year. Surely she could afford to pay and to top it all they informed him that his daughter had racked up $10k in debts. My husband was surprised because he only co-signed $2k. Fast forward, my husband died and the credit card company went and took away $10k from my husband account. That's a lot of money which could have been in my husband's estate.
—Guest angela

don't co-sign

Well, some ten years ago, one of my uncle, Vang, he begged me to co-sign a student for his son. He promised after his son graduate, he and his son will pay the loan; I don't have to worry about it at all even if he finds no job, he will sell property to pay the loan. that made me believe in him and signed it once for the school. Now, his son finished school, get a job but he and his dad failed to pay the school loan. these people had screwed up me big. I cannot contact them, it's caused big issues between us. School reps call me everyday to pay Sallie Mae, I became disable and could not make any payments. Friends, don't ever co-sign anything for anyone even a brother or sister, don't trust anyone. my cousin, Mr. Vang is a big scammer. people are doing evil things now just don't care. stay away from these folks.
—Guest Noahpha Cha vang

Just don't do it!!

My sister co-signed for our older sister years ago. 9 grand was taken out of her account and she was left with $90. She has mortgage, bills, and 3 small children. We have not been able to contact our sister who sits at home and gets high all day. This is a person who went to and graduated from medical school but now wastes her life away. Just don't be a co-signer for anyone. Family or not.
—Guest Vanessa

CO SIGNED ON A CAR FOR A BOYFRIEND

I WAS TALKING TO GUY AND HE NEEDED A NEW A CAR BECAUSE HIS GRANDPARENTS WERE GOING TO TAKE HIS CAR AWAY. SO ME BEING A CARING AND STUPID DECIDED TO HELP HIM OUT. ONE WEEK LETTER HE STUCK A LETTER ON DESK AND TOLD ME THAT WE WERE BREAKING UP. HE DROVE THE CAR ABOUT A MONTH AND DIDN'T HELP ME WITH THE INSURANCE AND I HAD TO PAY MOST OF THE MONEY NEEDED TO GET OUT THE CAR MYSELF. EVEN TO THIS DAY I AM STRUGGLING WITH GETTING LOANS AND MY CREDIT SCORE HASN'T RECOVERED FULLY. SOMEONE THAT CARES ABOUT YOU WILL NOT EVEN ASK FOR THIS KINDA FAVOR. I HAVE NEVER ASKED AND NEVER WILL. DON'T CO SIGN. IF THEY CAN'T GET IT ON THEIR OWN THEN THEY DON'T NEED. ALSO A MAN THAT HAS HIS HAND OUT ISN'T MAN.
—Guest GUEST J

Don't know what to do

About 2 years ago after returning home from my military duty my brother begged me to cosign for him a set of rims so I am like in my head alright that should be easy to pay off, I thought everything was fine in dandy until I tried to get a credit card and I kept getting denied I was like what the hell I have perfect credit, so I finally put in for a credit check myself turns out my brother hasn't paid on these tires in a year and my credit shows that I am negligent of paying 4000 dollars on something I never bought. So know right before I get married I find out I can't even buy a house.....worst of all I am a full time student and now got this to worry about
—Guest Nick

Mom

I consigned my daughter's car loan after dealership told me my name could come off after she built a yr of credit. She's paid now on time for 2 yrs n Toyota Finance will not remove my name unless I oay$400!! Don't buy Toyota or Toyota Finance. They scammed me into co-signing
—Guest Grace

husband scam

My husband scam me into cosigning s loan, he's unemployed, a drunk, abusive, I can't get a loan for myself. I'm so screwed.
—Guest julia rose

My on going nightmare

Well years ago I co- sign for my best Friend. Every thing was good until the car got totaled. It was a total lost so after that he told me that they gave him a check and he had to pay the difference no exactly sure. Well I went to my bank to get a new ATM card I was told that I was being sued from Mazda I was shocked and very confused of the whole situation. By then he was away on basic training for the military. So I fax and emailed him the paperwork he said he would take care of it. Be he never did they froze my bank account they took 8 grand from my a account saying it was lawyer fees so now he owes me 8 grand plus guess what I still owe 20 plus grand. So now I can't have any money in the bank because of this. And he moved out of state and the credit company has all his info but can't go after him because of this again everything falls back on me and I refuseto pay. Because its not fair. I think there should a stricter law on co-signing because it always goes bad for co-signer
—Guest Randi

Bad situation got worse...

I went with my sister to a car dealership, after much begging and pleading from her I agreed to co-sign on a van for her. She was pregnant with her 3rd child and needed a bigger car. I co-signed and then after a couple of years of her paying it on time she can't keep her legs closed and gets pregnant again. Turns out she can't afford the van payment with 4 kids. The bank starts calling me and tells me that guess what.... I am actually the signer on the van not the co-signer. The paperwork was filed incorrectly at the car dealership and now the van was repo'd. So I am completely screwed. All of this is happening when my husband and I are looking into buying a house. That will not happen now. Today I found out that my sister decided not to pay what she owes and try to get it back, she went and bought a van. I am without options and completely screwed and have no idea what to do. Thank you sister from HELL!
—Guest Heidi

Screwed By Family

In 2006 my grandson from North Carolina and his mother called and asked me to co-sign his student loan to attend the University of South Carolina. I really had second thoughts about it and wish I had trusted my instincts. To make a long story short, I am now stuck with the loan and after they screwed me, him and his low down dirty mother stopped communicating with me. When I would call, my grandson would not answer the phone. His mother lied and said she couldn't co-sign because she had bad credit but she didn't want to put her credit at risk. I later found out that my grandson had been giving his mother some of his cost of living money and now she doesn't want to help pay back this loan. I am very angry because I am 63 years old and fast approaching retirement. My advice to anybody who is approached about co-signing a loan, don't do it. On top of that since he would not answer the phone, I left some pretty nasty messages on his voicemail and he has the nerve to be offended.
—gotplayed

Didn't know I was a co-signer

Step-daughter wants to go to an expensive private college. Wife and her ex decide they can swing it so they apply for the loans to get her into and through school. Because I am married to her mother now the bank wants our joint income for verification purposes. When I supplied figures and signed saying they were accurate I had no idea I was also being held responsible for this loan also. Found this fact out when I got a demand for a missed payment in the mail. We still all live in the same house. That certainly made the situation awkward to say the least. This just added to the situation at home that sees her living here and working but paying no rent or support to the running of the house whatsoever. Good job, I still love her mother very much but the sooner this free loader hits the road the better.
—Guest Steve

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What Happens When You Co-Sign

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