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Is it legal to refinance a car loan without the co-signer's consent or presence?

Layton, UT |

I asked this question once before, but it appears I was not very clear. I want to know if it is legal to refinance a loan on a pre-assemled home without the co-signers presence, or knowledge of this? The co-signer has not paid nothing on this loan that was supposed to be paid within 5 years. Will the owner of the home stopped making the payments for god knows what reasons, and when she finally started making payments the loan company sold the account to another lender under a new agreement. At this point she owes triple the amount of what the home is worth, and she is know thinking of going to bankruptcy. The co-signer agreed to co-sign under the previous contract's conditions, not under the new agreement, what can he do in this case to get out of the deal, is this legal at all?

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Attorney answers 2


Ok, is this a car loan or a home loan? Do both co-signers own this car, or home? The same principle applies, the owners must sign off any loan that encumbers their property, but co-borrowers who aren't owners don't have the same interest.


I am guessing that this is a loan on a mobile home and its is designated as a motor vehicle loan, correct? Is there really a "new agreement" or is the new higher balance and/or higher payments/interest rate just part of the default provisions of the original loan agreement?

For example, in some loan agreements there is a provision that when a loan goes into default for non-payment, the contract that allows for penalties and increased interest to be charged on the account until the default is cured.

I am not an attorney in UT. You should consult with an attorney to review the terms of the original loan, and any subsequent changes to the terms.

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