Loan in husbands name, car in son's

[haha0002]

My stepson (who was living with us at the time) purchased a car with a loan thru the credit union. He was unable to get the loan in his name as he is 18 with no proven credit history, so my husband took the loan in his name with stepson as cosigner. They verbally agreed that the car would not leave our house until it was paid off or the loan switched into stepsons name, even if stepson moved out. Shortly thereafter, stepson was asked to leave and also leave the car. He declined and currently has possession of the vehicle and refuses to give it up. The credit union advised that we should stop paying the loan and they would go to stepson next as the cosigner. This however, does not resolve our problem of not wanting the loan in my husbands name with stepson running around with the car and into questionable activities. I must add, that it is not a question of stepson not being able to afford to make the payments - my husband does not want his name on the loan. We live in Maryland, the title is in stepsons name. Short of repossessing the car ourselves, what are our options?

Thank you.

 

[I AM ALWAYS LIABLE]

My stepson (who was living with us at the time) purchased a car with a loan thru the credit union. He was unable to get the loan in his name as he is 18 with no proven credit history, so my husband took the loan in his name with stepson as cosigner. They verbally agreed that the car would not leave our house until it was paid off or the loan switched into stepsons name, even if stepson moved out. Shortly thereafter, stepson was asked to leave and also leave the car. He declined and currently has possession of the vehicle and refuses to give it up. The credit union advised that we should stop paying the loan and they would go to stepson next as the cosigner. This however, does not resolve our problem of not wanting the loan in my husbands name with stepson running around with the car and into questionable activities. I must add, that it is not a question of stepson not being able to afford to make the payments - my husband does not want his name on the loan. We live in Maryland, the title is in stepsons name. Short of repossessing the car ourselves, what are our options?

Thank you.

My response:

Unfortunately, none that aren't drastic. You can't repossess a car that isn't in your name. The only thing you "own" is the loan. But, because your name is only on the loan, you are not responsible for any damages he may cause, as any co-owner would be, if your name was on the registration.

So, your only alternative is to sue your son for "Partition" of the loan; that is, have a court order him to refinance the vehicle in his name alone.

This is just one of those little "life lessons" and it's always my recommendation that no one should EVER co-sign a loan, or take out a loan, for any reason, for anyone - - not even for family. "Creditors always remember. Debtors always forget".

IAAL

 

[haha0002]

Thank you for your reply - yes, it definitely is one of those "life lessons". Unfortunately, you don't expect your own child to behave this way.

 

[I AM ALWAYS LIABLE]

Thank you for your reply - yes, it definitely is one of those "life lessons". Unfortunately, you don't expect your own child to behave this way.

My response:

Yes, I agree. You shouldn't have to expect that a family member would be so callous as to not only disregard your feelings, but also ruin another family member's credit standing. Some people, including family, just don't want to understand these concepts. Remember how "hungry" he was for a car, and you could literally see him salivate at the thought of getting that car ?

Unfortunately, these Boards are filled and littered with posts similar to yours.

But, what's done is done.

I wish you well.

IAAL

 

[haha0002]

This brings about another question. If we were to sue for partition of the loan and he did not comply with a court order, what would happen then?

Also, how does one go about suing for partition?

Thanks.