heres the senerio needs some imput please auto dealer sells a vehicle, bank approves loan no info on application was verified. the cosigner has NO credit score and NO proof of income and it gets better the buyer was dishonest on the application. isn't this considered fraud ! the co signer wants out of this deal any suggestions? other than seeking legal advise is there a regulatory department to file a complaint? co signer credit is now in jeopardy help!
If the cosigner did in fact cosign, they may be stuck. If the cosigner cosigned, based on misrepresentations by the buyer, they may be able to sue the buyer, but they may still be on the hook to the lender. Of course, the buyer probably has nothing, which is why the lender wanted a cosigner. The cosigner might have no income, but there may be assets to attach. If the cosigner's signature was forged, that is a criminal act, and you report it as such. There were a number of incidents where a car dealer in south Florida was forging cosigner signatures on loan applications for unrelated buyers, after obtaining the "cosigner" identity data from other car shoppers that walked in. If the cosigner was a minor, or under a conservatorship, they might not be able to make a legal contract. If changes were made to the contract after the cosigner signed it, that would presumably be forgery, even if the buyer agreed. The buyer is not the the cosigner's agent. If the buyer made false statements on the application, that may be a problem for the buyer, but why would it get the cosigner off? Most people would assume the cosigner knew who they were cosigning for. Never cosign. If you wouldn't lend it directly yourself, why would you put yourself in the middle? You don't even have a lien, and even if you pay off, your credit is screwed. Note: I am not an attorney. You may want to have one look at your situation.
hi Ontrack thanks for your response the co-buyer had just turned 18 the month before the application was signed , so they are on the hook there. the problem here is both the dealer and the buyer lead the 18 year old cosigner into believeing the car was being financed in her name and the buyer was the one to cosign for the 18 year old who had no no credit score or proof of income. neither the bank or the dealer verified any info on the loan application! such as employment or income which is very odd! the bank states they took the info on the application to be true and at face value when they decided to approve the loan. the 18 year old has recently discovered that the BUYER appearantly made fraudulent statements on the application concerning her employment and income in order to obtain the loan . the bank who financed the loan only has the buyer's name listed on the billing statement, the loan docs are being ordered from the bank as the buyer will not provide the cosigner with a copy the only info that has been obtained thus far is a copy of the application the bank sent, the vehicle registration in which both names appear and a copy of the notice to cosigner that reflects the 18 year old signature since the bank approved the loan based on fraud pretenses from the buyer wouldn't that release the cosigner from the obligation couldn't the loan be rescinded or re-financed?
Assuming the payments are being made, who is making them, and who owns the car as a result? Whose name is on the registration? Presumably, that is who the state considers the owner. Is that the person making the payments?
buyer made the 1st payment the 2 payment has not been made and is now late by 1 week. in regards to the registration both names appear
