Question: I cosigned a car loan for a very, very good and close friend. After a month, I got my bank statement and money was taken out of my account. I called the bank and they told me that my ‘very, very good’ friend didn’t even bother to make the first payment. I wound up making 6 payments on a car that he had and that I couldn’t even repo because it was not in my name. Luckily, his father was my partner in a business and I bought him out. In my payment for my half of the businees, the father agreed to let me deduct the whole price of the car loan and pay it off. Moral of the story? I wouldn’t cosign a note for anyone walking on this planet or anyother planet no matter how sincere they sounded.
Answer: The loan amount I’m asking for is $2,000. Thing is I need it RIGHT NOW. To cover August expenses, and get utilities back up to current. In reality I only need a little more than $1,000 but I’ll use the rest to start paying back the loan monthly or in whatever increments.
I’m still unclear as to wether to report gross income or net income when applying for loans.
Thanks for your response, The operative word is good friend. Nothing is crueler or worst than having a friend, parent or relative co-sign on a loan. If you have an accident, get sick, or have any problem not being able to make a payment, the financial institution simply ignores you and rubs their hands, gets excited and quickly looks to your co-signer to pay back your entire loan. Life couldn’t be better for the financial institution. Does your co-signer know the extreme risk she is taking, perhaps being pressured into because she loves you so much and wants to help you in any way she can not realizing how seriously she is risking everything she has, everything she has worked for, and all future plans destroyed while she pays off your financial obligation and all her financial obligations at the same time. Most people don’t understand the real risk of co-sigining for a loan. At the very least, they are severly blinded by their love of the person they early want to help.
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