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  1. #1
    Join Date
    Aug 2008
    Posts
    5

    Default Family Responsibility for an Auto Loan

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

    My cousin (27 yrs at time of purchase) bought a used 2000 model year car in 2005. Her father (57 at time of purchase) co-signed the loan. It is a 6 year loan. The cosigner died in 2006. Three weeks ago, my cousin nearly drowned and is now in a permanent vegetative state (breathing/feeding tubes, no expected recovery) and will remain in hospital care for the remainder of her life. Based on their ages - obviously the loan does not qualify for peace of mind.

    We called the Credit Union that financed the car to find out what to do. They stated that $11,000 (eleven thousand) is still owed, and that her mother/co-signers wife must continue payments or risk her (the mother's) assets being garnished/seized to pay the balance.

    We will not be able to sell or transfer equity on the car as no one will be willing to take over this high balance. The car is at best worth one or two thousand dollars and probably less at auction. We will gladly voluntary surrender the vehicle but are concerned a) on the high expected deficiency balance and b) credit ramifications to the mother/spouse.

    Can a company gain judgement on assets or wages of a co-signers spouse when both the buyer and co-signer are incapacitated/deceased?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Family Responsibility for an Auto Loan

    Did your cousin's mother consent to the cosigning? Was your cousin's father's estate probated?

  3. #3
    Join Date
    Aug 2008
    Posts
    5

    Default Re: Family Responsibility for an Auto Loan

    Thank you for such a quick respose!

    Mother did not sign any agreements, however, she was aware that her husband cosigned the loan for their daughter. How could a lender prove consent?

    The fathers minimal remaining assets are jointly owned by the mother and she has sole posession. No will or trusts. There really isn't much by way of an estate - no home or significant monetary accounts (that I am aware of).

    The mother does receive monthly payments from life insurance and social security death benefits for the father- is it possible for the bank to garnish those type of payments if they are not working income?

  4. #4
    Join Date
    Aug 2008
    Posts
    5

    Default Re: Family Responsibility for an Auto Loan

    To add - I just found out that the vehicle was actually purchased and financed in California, not Washington. The buyer (my cousin) lives and the car is housed in Washington. Sorry for any confusion.

  5. #5
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Family Responsibility for an Auto Loan

    Was that, "Yes, the estate was probated, but it was small," or "No, the estate was not probated"?

  6. #6
    Join Date
    Aug 2008
    Posts
    5

    Default Re: Family Responsibility for an Auto Loan

    It was not probated.

    Turns out she did not consent to the co-signing. Her husband came home and told her about it only after he had signed.

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Family Responsibility for an Auto Loan

    Since Washington is a community property state & the father co-signed for the debt (loan) during the marriage, his wife may very well be held responsible for the balance due.

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