May 7th, 2009 by Questions
what as a cosigner happens when the lender defaults and a car is repossesed
Posted from: Alberta
One Response to “repossession”
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May 08, 2009 at 11:13 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Essentially as co-signer you are equally responsible for the default. So after the vehicle is seized, it will be sold, the proceeds applied against the loan and any remaining balance (shortfall) you and the other debtor are fully responsible for.
At this point the creditor will look to the both of you to see that the debt is satisfied in full as this is what would have been stipulated in the contract you would have signed.