[Suspira]

Hi, I cosigned for a vehicle, and the person I cosigned for is, of course, a crook. I was hassled daily for months about back payments - she would make one and then they would start calling again. This went on and on. She had possession of the car and I begged her to just turn it in, but despite promises, she did not. Finally the car was repossessed with my help and the help of her sister-in-law. Meanwhile I was being threatened within an inch of my life by the repossession company.

I know I'm responsible, but that's not my question. I have received a bill for $8,000. Now, I know of another situation - the identical problem - that took place in New Mexico. The car was in New Mexico, but the lender was Bank of America in Texas. This guy didn't pay and neither did his cosigner, who claimed identity theft and had an attorney. Eventually the lender offered a settlement of $5,000, down from, I believe, $7,000. Nothing was ever paid on it.

Okay, the questions (and by the way, I'm on the title of the car)

1. How long before the lender can take money from my bank account or put a lien on my house? The first notice I received that the car was sold was June 20, and I just received a phone call yesterday - they probably want their money.

2. Is there any chance of them offering a settlement or of me making a settlement? I am willing to pay because I made a dreadful mistake, but if there's any chance of paying less, I'd like to.

3. Is there any way to repair my credit after this mess?

Thanks.

[Betty3]

1) The creditor cannot take money out of your bank acct. or seize any non-exempt assets in your state until they go to court & get a judgment against you.
2) You certainly can try & make a settlement for a lesser amt. but they do not have to make an offer for a lesser amt. or accept your offer of a lesser amt.
3) If the debt shows up on your credit report(s), you probably will just have to wait until the time period for reporting the debt has elapsed before it will come off the reports. There is a thing called pay to delete where you offer to pay the creditor for the debt owed & they agree to delete the debt entry from the reports. This is rare though & most creditors do not consider them. To start repairing your credit you need to pay all your debts & pay them on time.

[Suspira]

Betty, thank you. I spoke with the "property recovery" service today and I did get a nice discount for paying the whole thing at once and by August 15, which I will do. She said it will be on my credit report as - I think she said a chargeoff - but paid in full. Better than nothing. This particular company has actually been very decent and very easy to talk to - unfortunately, the woman I co-signed for would not work with them or call them. I will try to get some money out of her - unlikely - but I'd rather get this taken care of now instead of having her lie through her teeth and tell me she worked out a payment plan. Anyway, thanks.