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Need to refinance a car and second owner will not comply?

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  • Need to refinance a car and second owner will not comply?


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Answer #1 | 02/01 2014 11:26
First off: This is reason #1,256 that people should never co-sign a loan. Afterall, there is a good reason that a lender requires certain people to have a co-signer. But to answer the question, your friend should send the other owner a 'certified' letter, threatening to sue for the missed payment(s). That should give the other owner incentive to work with your friend to figure the situation out. If necessary, the other owner could be forced by a judge/magistrate to turn the car over to your friend who could then either keep the car OR hand it over to the lender (repossesion). But I don't see how this works out in your friend's favor. The current lender is NEVER going to release her from the loan obligation. Afterall, she was the 'insurance' that the lender would be paid back. And I don't see any other lender re-financing a delinquent loan.

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