Debt Transfer Question
How would someone go about transfering responsibility on a vehicle loan so that late payments, etc...would not hurt the signers credit score. Ex: A mother-in-law signs for her daughters husband (who is the co-signer) on a car loan. The daughter and the husband are now getting a divorce and the mother wants to either have the lender take back the vehicle, or transfer the debt responsibility to someone in his family. Is this possible and how can it be done.
Thanks
Is this possible and how can it be done.
YES! A Quit Claim (you relinquish any/all claims to whatever property).
However, the lender has to agree to do it... Call the lender QUICK! As, all it takes is ONE late pay... And, I'm sure you can forget EVER getting your name off!
Auto Loans are not the same as home loans...auto lenders are not very excited about taking the co-signer off a loan.
obviously the person needed a co-signer...whats in it for the bank to remove that once needed co-signer?
Chances are there is no equity in the car, right? Well if there is (equity), the "co-signer" has legal rights to the car. They could take it and sell it, thus elimanating the debt. Be-ing a co-signer makes that person equally responsbile for the loan, how ever in many cases (Florida for instance) if 50% of the purchase amount has been paid, the collateral can be returned to the lienholder without negative side effects. Beware, if they "give" the car back,any monies due after the sale will be owed and many banks will file judgements against the parties. that means any future earnings could be used for the repayng of the loan. Maybe another option is taking out a property equity loan and paying off the car?Hope this helps.
All,
It is possible, for I have done it! When going through my divorce, many years ago, my wife wanted the car...
She called the Lender, and the lender allowed it... I didn't want the payments..So, I signed it! That simple!
Just did some additional reading...And, as I said, you have to GET the lender involved! You can sign all the documents you want between each other...But, if the Lender doesn't recognize it... FUGGIT ABOUT IT!
[ Edited by jchester on Date 08/25/2003 ]