Legal Question in Consumer Law in Pennsylvania
Co-Signer
My Aunt had co-signed a automobile loan for me. Being a eldery women. If she should pass away defore the loan is paid off How would this effect the loan.
Thank you
1 Answer from Attorneys
Re: Co-Signer
It would have no effect on you. She co-signed the loan for you as a protection to the creditor. You owe the loan no matter what. If she passes and you refuse to pay then the creditors will take the vehicle. It would be sold at auction and the proceeds would be used to pay down your debt. If a positive balance remained after auction (and it ALWAYS does) you would still be responsible. If there was a surplus after the auction proceeds were applied to the amount due on the loan you would, eventually, recieve a check (this never happens).
If you don't pay the debt you lose the car and your credit rating.
Hope that answers your question.
Regards,
Roger Traversa
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