loan to sister

[pkwilkins]

What is the name of your state? Oklahoma

in oct 2002 my husband & I loaned his sister money to pay off her car to keep it from getting repossessed. Her payment to us was cut in half from what it was at the bank. She paid in Nov & Dec, she has now missed Jan & Feb. She gave us title to vehilce to hold as protection for us. I typed up a contract at her request, she read it, said it looked good to her, but never signed it. There has now been a falling out between her and my husband. She won't answer phone calls or return messages. I sent her a letter last week giving her until 5:00 p.m. 2/28/03 to contact us to make payment arrangements or we would be forced to take further action. Of course, no response from her. Now I am asking her to surrender the vehicle. Total loan amount is $5,500 plus interest. I have a copy of the check and spreadsheet showing the two payments(cash) she has made.
Do we have a leg to stand on?
Can we repossess the vehicle?
Should we file suit?

Help?!

 

[JETX]

"Do we have a leg to stand on?"
*** Possibly, but it is a weak leg since there isn't an agreement in writing.

"Can we repossess the vehicle?"
*** No. Without a written agreement, you have no 'security interest' in the vehicle, so repossession is not possible. Your post only says that she 'gave' you title. Did she sign it over to you or just give you the title to hold (still in her name). If she signed it over to you AND it is a clear, negotiable title, you might consider taking possession of your vehicle. Take the title in YOUR name to a dealer for that model and ask them to produce a duplicate key. Then, using that key, go get YOUR car. However, be damn sure that you have the FULL LEGAL RIGHTS of title before doing this or you could be facing auto theft charges.

"Should we file suit?"
*** Only you can answer that one.