 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: Do Cosigners Have Rights When a Car Is Repossessed?\n---------------------------------------------------\nAlthough you have significant liabilities as a cosigner in an auto repossession, you also have rights.\nFirst off, the creditor must sell the repossessed car in a \"commercially reasonable manner.\" While the definition of this varies by jurisdiction, the Federal Trade Commission says a \"resale price that is below fair market value may indicate that the sale was not commercially reasonable.\" If that occurs, you may be able to hold it against the creditor in court.\nYour creditor must also provide certain written notices to you soon after the repossession (usually within five days). Specifically, you should receive information regarding:\n*   Redemption, wherein you can pay the full balance due, plus fees, to buy back the car.\n*   Reinstatement, wherein you make all the past-due payments, plus fees, to get current on the loan and get the car back (access to this option depends on your state and contract).\n*   When and where the car will be sold.\n*   How the deficiency balance is calculated.\nBe sure to keep careful records; if the creditor doesn't follow these rules, you could integrate that into your legal defense.\nYou can also ask the creditor for permission to sell the car yourself, thereby saving it money on fees—and potentially garnering a much higher price. If the lender refuses, you could potentially use that in court too. END