so I co-signed for a car, am I stuck??

[moleman16]

Hi Everyone, this is my first post here, thanks for taking the time to read and i appreciate anyone's guidance!

so here's the deal. there's this girl i used to be close with. never dated, never married, just good friends. i helped her buy a car 2 years ago, and my credit rocks and hers sucks, so i co-signed for her. she HAS been paying the car on time every month.

things went sour between us and now we don't talk anymore. i've been trying to contact her for 6-8 months and just be friendly, but she has not responded. i'm trying to get a mortgage, and they said in order to show that she has been making the payments and i haven't, they need to see cancelled checks from her. otherwise, they have to assume i've been paying the $400/month and will not let me get a full mortgage.

after repeated attempts (texts, vm's, fbook messages, myspace messages) she did not respond, so i found her address, knocked on her door, and told her what i need. she said sorry, i won't do it, and slammed the door on me. so, my plan became to take the car -- as the co-signer the bank tells me that i am responsible for the payments but also equal owner of the car. legally, the car is mine so i can take it and I can actually sell it and be completely done with it all. i had the dealership make me a copy of the key, and i went to take the car but it wasn't there, and i got caught on a security camera while trespassing in her back yard. she turned in the tape to the cops and i've been warned if i go there again they'll get me for trespassing.

so, now i feel like i'm stuck -- i do not want to be a co-signer for someone uncooperative, but my priority is getting the mortgage. I wouldn't mind remaining as the co-signer, i simply need to get my mortgage too. what can i do to her from a legal point of view:
a. force her to give me cancelled checks showing she pays every month
b. make her sell the car / refinance it
c. take the car and sell it out from under her

i know it's ridiculous, but that's why i'm asking for guidance

 

[Law Ninja]

Q: what can i do to her from a legal point of view:
a. force her to give me cancelled checks showing she pays every month
b. make her sell the car / refinance it
c. take the car and sell it out from under her

A: You cannot force her to give you the cancelled checks.

You cannot force a sale of the car unless you are a co-owner. You were given poor advice earlier -- a co-signor of a loan is not necessarily a co-owner of the property.

You cannot take the car and sell it out from under her unless you are a co-owner and the title states "You or Her."

You must review the title to determine whether you are a co-owner. If you are, and the title states "You and Her" then you can take her to court and force a partition sale (this will be costly in legal fees). If the title states "Your or Her" then you can sell it without a court order and without her consent (though she may be entitled to the proceeds). If you are not an owner per the title, then you have no recourse.

HI-YAAAAAAAAAAAAA!

 

[Andy0192]

The proper term is Co-buyer. Co-signer just sounds nice, like you're lending your good name to re-inforce the creditworthiness of the buyer. That's not what you're doing.

As co-buyer, you become legally obligated to pay for the loan on the vehicle. Yes, you can hope that your friend continues to make the payments, but it is YOUR obligation. If she stops making payments, the lending institution will look to YOU to pay the loan. After all, you're the one with good credit !

As Ninja said, unless you are a co-owner of the vehicle, you have no legal right to the car. You basically signed away your good name for no a no-benefit loan with full liability for an item you don't own.

As you've found out, being a co-buyer is a lousy deal. There isn't much you can force your former friend to do.

 

[moleman16]

Thanks for the info! While it's not exactly what i wanted to hear, i had a feeling that this is the mess i've gotten myself into...


so i need some help with the term 'co-owner'. on my documentation from the dealership, i signed my name underneath hers -- we're both listed as "buyer" and the co-signer space is left blank.

the title bureau told me her name is the only one listed on the title and would not give me a copy as such. however, until the car is paid off completely the name on the title should be the bank's, right? i thought that was the point of a memorandum of title. the bank told me if i sold the car, they would send the new owner of the vehicle the title directly...

 

[Andy0192]

the title bureau told me her name is the only one listed on the title and would not give me a copy as such. however, until the car is paid off completely the name on the title should be the bank's, right?

Title = ownership.

Bank has a lien against the Title.

You are listed as a co-buyer on the loan documentation.

Bottom line, you're screwed.

 

[moleman16]

let's say i get screwed out of the mortgage, and end up missing the boat on the government's $8000 tax credit incentive. Is there a way I can show that was directly because of her and go after her for that loss?

i really hope it doesn't come to that, but is that even a valid threat i can make in an attempt to make her fork over the cancelled checks?

 

[Andy0192]

There is no legal obligation for her to correct your bad mistake.

Yes, you're the one who is bearing the pain of your own bad decision, but it's just that, Your decision.

My grandfather told me once: " If everyone else is wearing a suit & smiling, you better be the one getting paid."

 

[patstew]

Title = ownership.

Bank has a lien against the Title.

You are listed as a co-buyer on the loan documentation.

Hrm, I wonder... if the bank would give some confirmation of payment records to a co-buyer? Maybe that would do it.

 

[moleman16]

Hrm, I wonder... if the bank would give some confirmation of payment records to a co-buyer? Maybe that would do it.

I called the bank, and they told me she makes payments through some middleman, a bi-weekly management group. she pays them directly out of her paycheck on a bi-weekly basis, they in turn pay the loan off at the bank. this way she pays it off a little faster and it costs less on interest. when the check gets to the bank from the middleman, it has her name in the note section of the check but that's all. they said they are not allowed to show me these checks though...

next step is to try to go through the bi-weekly management company and see if they can show me the checks she gives to them. doubt it, but we'll see.

thank you for all the help!