I cosigned for my brother's $22k student loan 6 years ago. He has defaulted on the payments more often than not and with forbearances, missed payments, and interest, the loan has increased to $32k. The letters I receive with account details are from Sallie Mae, so I think they are still the loan holders. He is currently unemployed and has been (off and on) throughout the years. He has been living bill-free with my mom for the last 3 years, and he still can't/won't stay current on his payments.
My question is, can I negotiate to pay a lump sum to have my name removed from the loan? If so, can I repossess my brother's paid-off car to get the lump of money. How do I go about doing this? He lives in California, I live in Texas.
Salle Mae isn't going to simply "remove your name" because you sent them a lump sum - they are entitled to the entire amount, and you are 100% on the hook for it, so why would they remove your liability for a lesser amount when they know your brother won't pay them?
As far as repossessing your brother's car - you can't do that, either. First, since your name isn't on the title as either an owner or a lien holder, you have no right of repossession. You'd have to sue your brother in CA, obtain a judgment, and then try to enforce it by seizing the car. But, in CA, you are allowed to exempt from collection thousands of dollars of motor vehicle, which means that, unless your brother's car is quite valuable, it would be pointless to try to seize it.
I'm afraid you're stuck - you simply shouldn't have co-signed your brother's loans.
We can be reached at 507.334.0155. Our web address is: www. corbin-law-office.com. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline