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Co-Signing for Adult Children

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jenm1120
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Co-Signing for Adult Children  Reply with quote  

My husband wants to co-sign a car note for his adult (31yr old) daughter. She is a single mom 4 kids and has held a steady job. I am opposed.

His point: She is putting $8k (from a tax refund, not savings) and he says she wont' risk losing that money. He said he believes she has matured.

My point: Yes, she is doing much better and I am proud of her, but she ruined her mothers' credit and has defaulted on several credit opportunities. I am opposed to co-signing for "wants" ie cars, and only agreed to co-sign student loans only.

He states that this doesn't matter as long as she pays the payments and if she doesn't pay the payments, then I can say something. I say that this type of financial decision affects us both, even if he is the only one who is co-signing. And, we cannot afford to pay her payment if she defaults as we have kids in college and are tapped out. Finally, I listed all the items that could be adversly affected if she defaults.

So, I am looking for your opinions, who is right and who is wrong. Am I being to unforgiving? And, finally any examples of how a default could cost him and I both money if she defaults? higher interest rates, higher insurance premiums, etc.

And, finally we have 13 year old daughter we still need to put through school and will need some financing to get her through. My husband and I have been together 16 years and this is a huge issue for me. I am considering completely separating our financial lives. And if you are curious on income, I earn 2.5 times the amount he earns a year and have already told my adult child from a previous marriage that I would not co-sign for him.
Post Tue Apr 06, 2010 1:49 am
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littleroc02us
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The fact that cannot be disputed about cosigning is that if she doesn't make the payments it's the cosigners responsibility. So, I hope you don't mind making the payments when she doesn't? The reason lenders won't lend to her is because they are afraid she may default. Good Luck!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Apr 06, 2010 1:08 pm
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jennquilter
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Yeah, i'm on your side, sounds like your husband is being a softy. Sad since she has $8,000, she could buy a used car if she'd like--buying something newer is a "want".... if she NEEDED a car and was in a more impossible situation, like she didn't have another way to get to work, etc, I would be more willing to consider it. But this is definitely a "want", not a need, and there's no reason to risk your credit for her wants
Post Sun May 09, 2010 8:52 pm
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clarissa_vargas
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There is no right or wrong, you have exposed the facts your husband is obviously acting like a father if you have explained your point he should understand it.

It is more probable she will fail a payment and affect you financially so it is not worth the risk.
Post Mon May 10, 2010 9:33 pm
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sbarrow47
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You can get a perfectly good used car for less than half that.
Post Tue Aug 17, 2010 4:24 am
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justinblake
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It's a really difficult issue. Your husband is being a father to his kid, and I think he wants to make it up to her. I believe it's a matter of being a dad to her now, because maybe, after his divorce from her mom and his marrying you, he felt like he has had some shortcomings. I think I am psycho-analyzing this already. But I say give him a chance to be that father to her.

But if I am wrong....

I think that you urging him from co-signing would become a bigger issue. I agree that it might not work out and it might make things difficult for your family, but would you also risk this issue causing a strain on your relationship with your husband now?

And for a family with four kids, I think a car is a necessity. Unless you mean that it's a car upgrade and they still have an old one, then it's definitely a want.
Post Tue Feb 15, 2011 4:22 pm
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kate032
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I know this is an older post, but co-signing for a loan for a child is usually a huge mistake. It's better to give or loan her the money yourself so that your credit is not vulnerable to whether she can or will repay the loan. If she is late or misses a payment, then you pay for it in more ways than the obvious.
Post Sun Mar 20, 2011 3:22 am
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khosta
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I think it's crazy she's asking her dad to co-sign.... I'm 26 and I have NEVER asked my dad to co-sign for me. I could not even imagine doing it in my 30's with my own life and kids. She sounds a little selfish or maybe I'm being crazy. Maybe there is more tot he story - but I think it's bogus for him to co-sign for adult woman....
Post Mon Mar 21, 2011 2:10 pm
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LindaPH2010
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its okay to help kids  Reply with quote  

Have her sign an agreement.
Post Mon Mar 21, 2011 9:37 pm
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LindaPH2010
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Have a heart!  Reply with quote  

I know I would do it for my kid.
Post Mon Mar 21, 2011 9:38 pm
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conary12
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Meessii34
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Mogaba3
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Post Fri Apr 06, 2012 2:18 am
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alfonzdev
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He states that this doesn't matter as long as she pays the payments and if she doesn't pay the payments, then I can say something.
Post Wed May 16, 2012 6:50 am
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anderson
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I say that this type of financial decision affects us both, even if he is the only one who is co-signing. And, we cannot afford to pay her payment if she defaults as we have kids in college and are tapped out. Finally, I listed all the items that could be adversly affected if she defaults.
Post Sun Jul 15, 2012 2:53 pm
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