Legal Question in Credit and Debt Law in Texas
auto loan co-signer and default
I co-signed an auto loan for my son. Little did I know that 6 months later, he would become heavily involved in using and dealing illegal drugs. I don't feel I should have to spend hundreds of dollars each month for this car, basically supporting him while he is engaged in illegal activity. (He's had one felony drug arrest, has had 2 wrecks while high, etc) Is there any way to get my name off this loan? I probably should sell it, but it's probably a negative equity situation, plus his name is on the title too and I doubt that he would agree to sell it. Do I have any options?
1 Answer from Attorneys
Re: auto loan co-signer and default
I'm sorry to have to tell you this, but you're on the hook for it. If you refuse to pay, they'll repo the car and sell it at auction. The proceeds first go to the auction fee, then to the repo costs, then applied against the outstanding loan. You'll be responsible for the deficiency.
If you tell them to repo the car because you won't pay, they'll do that. If you keep paying, it's only a matter of time before he's busted with contraband in the car, and the state or feds seize the car.
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