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Post by runhard on Apr 28, 2022 2:33:18 GMT -5
Okay I've watched this episode countless times and I still have one question if John co-signs on a loan for Ike then how come John's the one who owes the money? Why should it be John who's back in debt again or is he the one who's going to pay Ike's loan back for him? Shouldn't it be Ike and Cora Beth who have to pay the loan payments with John as co-signer that the loan will be paid back? That's how it would work with any bank you have a co-signer but you make the payments they are there just in case you don't.
Now don't get me wrong I love this episode it's got both drama with a touch of comedy but every time I watch I think wait a minute John's the supposed collateral but why should he make the payments that should be Ike. Let's hear what you think?
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Post by Easton on Apr 28, 2022 7:32:05 GMT -5
He isn't. Ike is responsible for repaying the loan. As co-signer, John is guaranteeing that the loan will be repaid. John is only responsible if Ike defaults on his payments, and with Ike's history with John, that's not likely to happen.
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Post by Deleted on Apr 28, 2022 10:18:51 GMT -5
I don't remember they said John was going to be paying the loans unless Ike did not pay them. There is still a risk as a co-signer, but the payments are Ikes not Johns.
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Post by runhard on Apr 28, 2022 18:24:17 GMT -5
He isn't. Ike is responsible for repaying the loan. As co-signer, John is guaranteeing that the loan will be repaid. John is only responsible if Ike defaults on his payments, and with Ike's history with John, that's not likely to happen. But remember the way it was written that's brought up about co-signing a loan and Olivia says "well I guess co-signing a loan isn't like owing the money yourself." Then Ike says "technically no." Then John Martin says, "technically yes." So now John is in debt again but why should he be like you and I said he's co-signing it not borrowing the money himself. Then he goes out and announces he's back in debt again but not really it's on Ike and he's only in debt if Ike defaults. The episode was on again this afternoon and I watched it and it's leaving all of us with the thought that now John is the one who's responsible for the loan. |
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Post by Easton on Apr 28, 2022 19:21:29 GMT -5
He isn't. Ike is responsible for repaying the loan. As co-signer, John is guaranteeing that the loan will be repaid. John is only responsible if Ike defaults on his payments, and with Ike's history with John, that's not likely to happen. So now John is in debt again but why should he be like you and I said he's co-signing it not borrowing the money himself. Ike is the one who is in debt. John is 'potentially' in debt. If and when Ike fails to repay the loan for whatever reason, the debt becomes John's. Until then, he is not in debt.
John is collateral, a promise that the lender will get the money back. Ike could just as easily put up his store or his car for collateral if the lender accepts them as payment. |
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Post by pinkbaker07 on Apr 28, 2022 19:24:59 GMT -5
Maybe Ike didn't have good credit. Did he buy the fridges nobody wanted on a loan or something like a credit card from the dealer?
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Post by Easton on Apr 28, 2022 20:23:09 GMT -5
^ Ike borrowed the money to buy the fridges, but they didn't work and he couldn't make payments on the loan. The bank called in the loan, meaning they wanted full payment in one shot. Since he had used the store as collateral, if he didn't come up with all of the money, the bank would own the store which would ultimately be sold to salvage some of the money. Ike wouldn't get any of it.
That's when he went to John just after he had finished burning the mortgage on the house. As I recall, it was John Martin's mother who would have made to loan to Ike with John as cosigner. That money which Ike borrowed would be given to the bank to pay off Ike's loan in full. Ike would then owe the money to John Martin's mother instead of the bank.
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Post by patriciaanne on Apr 30, 2022 6:09:50 GMT -5
Co-signing a loan is serious business. IF the first person defaults, you are on the hook to pay it off. In this case, John would be on the hook to pay Ike's debt if Ike defaulted. Ike could have defaulted for many reasons -- downtown in business, illness or death. And John would have been on the hook regardless. So the moral of the story is never co-sign a loan you can't afford to pay off completely yourself.
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