Car Loan CoSigner
Date: Sun, 10/03/2010 - 22:58
My husband co-signed for a car loan ( i know how dumb this was) for one of his ex-employees and he found out recently that the ex-employee was late 3 times and this effected my husbands credit scores and now he can't get a bond for his company b/c of the lower fico scores.
I don't think my husband name is on the registration or the title of the car. My husband wants to sell the car but the owner is rejecting and saying that he wants 2K then he can give the car. Doesn't my husband (the co-signer, by the way, the loan papers come to his name only) have the right to sell the car and pay off the loan. Owner is late again this monty it will be 30 days late in a few days and another late will appear on my husbands report.
We are in California. I am trying to find out if legally we have a right to sell the car? Even though my husbands name is not on the title but his name is on the loan, does that give hime a right to sell if the owner is not paying the loan? He also didn't have insurance for the last 6 months so the bank added 2K onto the loan and he didn't register the car for over 8 months.
Any feedback will be appreciated. Thanks.
First of all, you can't sell the car without a clear title - unl
First of all, you can't sell the car without a clear title - unless you're selling it to a dealership as a trade for another car. If your husband isn't on the title, I don't know how much pull he's going to have. My advice is to consult an attorney.
If your husband is not on the title, he has absolutely no rights
If your husband is not on the title, he has absolutely no rights at all. As cosignor he signed on for liability but without the owners consent, there is no way he can sell it or even demand that it be sold. Even though the payments are late, the car has been paid for by the owner and is HIS property.
If you have the money you might consider attempting to purchase
If you have the money you might consider attempting to purchase the loan. You would have to pay off the current loan and at the same time create documents that make you the new lender. All of this would have to be done at the consent of the borrower. The positive is your credit and bond score would be protected. The negative is you now are in the car loan business which may end up with you attempting to reposess a car for lack of payment.
Lenders wont go for this....they are not going to spend the time
Lenders wont go for this....they are not going to spend the time doing paperwork for somebody else...it doesnt create revenue for them. I dont see the other coborrower going for this either.
Here's an Ohio case where an Ohio appeals court ruled that a cos
Here's an Ohio case where an Ohio appeals court ruled that a cosigner doesn't have ownership rights: http://www.producersweb.com/r/FCS/d/contentFocus/?pcID=5b95d6383356ff0fbd086bbd1ff10f21 cosigner/car owner
-CC
