Cosigner Used Household Income, Not Individual Income, on Loan Application

[hicalirunner]

My question involves an auto loan or repossession in the State of: California.

A week and a half ago, I purchased a used car. My mother is on State Disability due to a worker's comp. injury several years ago, she is still under employment but no longer working with her employer. She has fanominal credit however, and I chose her as my cosigner for my auto loan. I would have had a higher APR if I had gone with my father as my cosigner, therefore, I chose my mother.

Upon filing the auto loan, my mother told the lenders that she was on disability but it did not seem to make a difference to them. When asked for a monthly income, my father blurted out his income--in place of my mother's. They are divorced and have been for decades, but came together to help me buy a car. My mother and I will be moving in with my father by the end of the month, so "technically" his income will be "our" income.

The credit union we are financing the loan through is now saying they are having trouble funding the loan to us and they require proof of my income (which is no problem) and my mother's income (since she is the cosigner) HOWEVER, we used my father's income! We will be meeting this weekend with the credit union to straighten things out, but I'm slightly nervous.

Am I at risk of having my car repossessed? Did we do a bad thing by listing my father's income? It's not a matter of not making my payments. I can/will always be able to make my payments on time. It's a matter of my cosigner's income--or lack thereof--because now, my mother's disability income has run its course.

Any comments will be appreciated. Thank you for taking the time to read!

[Mr. Knowitall]

If you cannot get financing then, quite obviously, you are at risk of having to return the vehicle. Perhaps your dad can cosign.