Certificate of Deposit

Question: I co-signed a personal loan for an automobile. As collateral I used a Certificate Of Deposit.?

What recourse do I have if the person I co-signed for, defaults on the loan? Can I put a lien on the car title? What other options do I have? I live in Pa.

Answer: None.

The lender has the lien.

If you have a written side contract you could sue them but if they don’t pay their car note are they really going to pay a judgment ?

You got what you signed up for…all of the downside with no upside.

If you had demanded ahead of time to be put down as 2nd lienholder that would have given you some protection. Then again, the lender might not have agreed to that.

The only way to take possession as 2nd lienholder would have been to pay off the first lienholder, then get the title and then you could repo the car. (Assuming you have a valid contract giving yourself that right)