Ex allows car to be repossessed (twice!)

[NorCalAl]

What is the name of your state (only U.S. law)? CA

Been divorced 9 years. Ex was awarded two of our five cars. She allowed one to be repossessed "voluntarily" the first year. Since I was never notified, the lender kept that off my credit. The second was a five year loan which she was constantly late on. Ended up extending it to six years through late payments (I never signed any loan modification). Finally, with $300 left to pay, she had it repossessed. She did redeem it, but of course, the repo is on my credit. This happened in 2009.

Now, with the HARP refi program, I'm trying to refi my home (which is 25% underwater) and save $500/month in payments. Her repo (our repo, I was a signatory on the loan) is the sole piece of negative credit I have - and is preventing me from scoring high enough to qualify.

After talking to her, I found the bank sent her the title - somehow in her name only.

Can I sue her? Can I get a contempt citation? Is there anything I can really do?? She's remarried (at least once I know of) and recently inherited some funds from her deceased mother, so she may have the ability to pay a successful suit.

Actually, is there any argument I can present to the bank that might make them pull the report? I don't care if I sue her if I can solve the problem.

 

[sandyclaus]

What is the name of your state (only U.S. law)? CA

Been divorced 9 years. Ex was awarded two of our five cars. She allowed one to be repossessed "voluntarily" the first year. Since I was never notified, the lender kept that off my credit. The second was a five year loan which she was constantly late on. Ended up extending it to six years through late payments (I never signed any loan modification). Finally, with $300 left to pay, she had it repossessed. She did redeem it, but of course, the repo is on my credit. This happened in 2009.

Now, with the HARP refi program, I'm trying to refi my home (which is 25% underwater) and save $500/month in payments. Her repo (our repo, I was a signatory on the loan) is the sole piece of negative credit I have - and is preventing me from scoring high enough to qualify.

After talking to her, I found the bank sent her the title - somehow in her name only.

Can I sue her? Can I get a contempt citation? Is there anything I can really do?? She's remarried (at least once I know of) and recently inherited some funds from her deceased mother, so she may have the ability to pay a successful suit.

Actually, is there any argument I can present to the bank that might make them pull the report? I don't care if I sue her if I can solve the problem.

How were the vehicles originally titled? Did your name appear on the title, and was it listed as you AND her or you OR her?

Were the vehicles jointly financed? If so, even if the divorce decree awarded ownership of them to her, that doesn't automatically remove YOU as being jointly responsible for the payments. She would have had to refinance them in her own name in order to do that. And that ALSO means that you would be held responsible for paying even if she didn't, and that the repo on the account would be perfectly valid.

 

[NorCalAl]

Indeed, I was a co-signer. I already know the legalities of my responsibility regarding that. I know I am/was responsible for the payments and that's not my question at all.

Rather, I am 1) asking if there's any way I could make her pay for allowing the vehicle to go to repossession, or more preferably 2) is there any argument I can make with the bank to get them to remove the listing from my report.

I'd rather not sue or do anything else to the ex. It's not that I don't feel she deserves it, she does. What I want much more is to be able to have the credit score go up enough to complete the refi. That's my only goal. Not three years from now when the negative item drops. I've seen 'compassion letters' that can be sent to creditors and I'm considering that - especially given as the same creditor has given me two loans SINCE the repo and I've never been a day late on either.

Any help toward my goal is much appreciated.

 

[sandyclaus]

Indeed, I was a co-signer. I already know the legalities of my responsibility regarding that. I know I am/was responsible for the payments and that's not my question at all.

Rather, I am 1) asking if there's any way I could make her pay for allowing the vehicle to go to repossession, or more preferably 2) is there any argument I can make with the bank to get them to remove the listing from my report.

I'd rather not sue or do anything else to the ex. It's not that I don't feel she deserves it, she does. What I want much more is to be able to have the credit score go up enough to complete the refi. That's my only goal. Not three years from now when the negative item drops. I've seen 'compassion letters' that can be sent to creditors and I'm considering that - especially given as the same creditor has given me two loans SINCE the repo and I've never been a day late on either.

Any help toward my goal is much appreciated.

The answer then, would be a resounding NO.

If you were jointly responsible for the payment of the debt, then it was up to you to ensure that the debt was paid in order to prevent a negative mark on your credit.

While I'm sure that the people at your bank were willing to overlook the issue in continuing to issue you credit, that doesn't necessitate them allowing you to get off scot-free. You can certainly write up a compassionate plea for them to remove the repo, but don't count on it.

As for who's to blame here? Since you say know the legalities of your responsibility, then you should also know that she isn't the only one at fault for this faux pas.

 

[single317dad]

Indeed, I was a co-signer. I already know the legalities of my responsibility regarding that. I know I am/was responsible for the payments and that's not my question at all.

Rather, I am 1) asking if there's any way I could make her pay for allowing the vehicle to go to repossession, or more preferably 2) is there any argument I can make with the bank to get them to remove the listing from my report.

I'd rather not sue or do anything else to the ex. It's not that I don't feel she deserves it, she does. What I want much more is to be able to have the credit score go up enough to complete the refi. That's my only goal. Not three years from now when the negative item drops. I've seen 'compassion letters' that can be sent to creditors and I'm considering that - especially given as the same creditor has given me two loans SINCE the repo and I've never been a day late on either.

Any help toward my goal is much appreciated.

Regarding 1), prove how you were damaged and in what dollar amount. That will be the requirement for a successful lawsuit. My personal (not legal) recommendation would be for you to forget all about the repo, and be glad you're no longer legally tied to such an irresponsible person.
2) there are many credit repair sites similar to this site that have forums and offer advice from the useful to the absurd. Just a guess here, but I imagine they'll recommend you dispute the item with the credit bureaus and/or explain the situation to the lender you're seeking credit from, with full documentation. Some lenders are understanding, some are not.

Good luck.

 

[davew128]

Were the vehicles jointly financed? If so, even if the divorce decree awarded ownership of them to her, that doesn't automatically remove YOU as being jointly responsible for the payments. She would have had to refinance them in her own name in order to do that. And that ALSO means that you would be held responsible for paying even if she didn't, and that the repo on the account would be perfectly valid.

If she refinanced, then he would no longer be a co-signer and thus his credit should not be harmed for a debt he was no longer responsible for.

 

[Zigner]

If she refinanced, then he would no longer be a co-signer and thus his credit should not be harmed for a debt he was no longer responsible for.

That's what Sandy said

 

[NorCalAl]

Well, Sandy, she moved to another state, changed the addresses associated with the account, then hid from everyone for a period of months. I was in no hurry to find her, either.

I never stated, hinted or intimated that I wasn't responsible. Jeez. Instead, what I looked for is some possible help. If you didn't want to help, why opine? Just read it and move on. If what you wanted to do is 'set me straight', well, I wasn't off base to begin with.

I paid for this marriage with 22 years of my life, then followed it up with spousal support and the destruction of my credit. Not to mention the last ten months of the marriage, while I was in and out of the hospital, she paid her bills with my pay and left those in my name only to go into default. (Yes, I know ALL of them were BOTH of ours. OK??? However, some only show up on my credit reports, some only on hers regardless of who was legally responsible. She made sure the ones showing up on HER report were paid. Get it?) She left because I became ill and my income dropped due to disability.

I'm not looking for any answers outside the questions I asked.

SingleDad - thank you - that's the type of information and opinion I was seeking. And pretty much what I thought I needed to do. I was wishing, I guess, that there was something I didn't know. Until today, I'd never heard of writing a goodwill letter. So you can learn something new!

 

[ecmst12]

No lawsuit against your ex will do a single thing to improve your credit.

 

[tranquility]

Regarding 1), prove how you were damaged and in what dollar amount. That will be the requirement for a successful lawsuit. My personal (not legal) recommendation would be for you to forget all about the repo, and be glad you're no longer legally tied to such an irresponsible person.

Another requirement might be the actual cause of action. Unless the court order was oddly worded, I'm uncertain what the OP could sue on for late payments that affect his credit if the OP did not eventually pay. (Then it could be in contribution.)

NorCalAl

I'm not looking for any answers outside the questions I asked.

"Can I sue her?" This is America. Of course you can sue. Winning is something else again.

"Can I get a contempt citation?" What part of the order did she violate? You haven't listed a provision.

"Is there anything I can really do??" I know you didn't like Sandyclaus' direct answer, why did you ask the question?

Ex does not seem to have done anything wrong by the facts posted. Sure, contempt is a possibility, but you have not given the provision she violated. "Disputing" the credit will not be that useful as the reporting is correct. (Although I have heard some creditors ignore the demand to respond and the credit agency has to remove it. But, that's just apocryphal, not the law.) The only thing I see is explaining the situation to your new lender.

 

[sandyclaus]

Well, Sandy, she moved to another state, changed the addresses associated with the account, then hid from everyone for a period of months. I was in no hurry to find her, either.

I never stated, hinted or intimated that I wasn't responsible. Jeez. Instead, what I looked for is some possible help. If you didn't want to help, why opine? Just read it and move on. If what you wanted to do is 'set me straight', well, I wasn't off base to begin with.

I paid for this marriage with 22 years of my life, then followed it up with spousal support and the destruction of my credit. Not to mention the last ten months of the marriage, while I was in and out of the hospital, she paid her bills with my pay and left those in my name only to go into default. (Yes, I know ALL of them were BOTH of ours. OK??? However, some only show up on my credit reports, some only on hers regardless of who was legally responsible. She made sure the ones showing up on HER report were paid. Get it?) She left because I became ill and my income dropped due to disability.

I'm not looking for any answers outside the questions I asked.

SingleDad - thank you - that's the type of information and opinion I was seeking. And pretty much what I thought I needed to do. I was wishing, I guess, that there was something I didn't know. Until today, I'd never heard of writing a goodwill letter. So you can learn something new!

I did answer your question. You just weren't prepared for the response I made.

If you jointly financed the vehicles under BOTH your names, you were just as responsible for paying those loans. Regardless if she moved, changed the account addresses, etc., the loan number(s) and lender remained the same. As you were concerned about whether or not she was paying, you could so easily have contacted the finance company YOURSELF and kept yourself up to date on the status of the account.

She left when you were down, and cleaned you out. I get that you're bitter and angry about that. But that does not change the fact of your culpability for what happened here.

As has been said already, you can certainly write a letter to the finance company asking for compassion in removing the repo from your credit report, but you shouldn't be expecting it. Nor is there anyway to sue your ex and hold HER responsible for the negative credit reporting either, since you were just as responsible for paying when the repo happened. Your choice to let her - and the outstanding loan debt - be out of sight and out of mind for as long as you chose to do so may well lose you the opportunity for the HARP assistance to bail out your house. And that is no one's fault but your own.

 

[NorCalAl]

Sadly, both tranquility and Sandy are both correct. I could have followed the loan proactively. Doing so would have alerted me to the fact that she was indeed screwing me again. Good point. In retrospect, that would have been a good plan. Since she was already soaking me for enough where I was choosing from a hat which bills to pay, in the long run I couldn't have done a lot to forestall the repo, but I could have contacted the court then to check into contempt.

As for not doing anything wrong, I guess I ASSUMED that the court would order each party to keep current those obligations they were awarded. It never occurred to me that would not be part of the agreement. Shame on me for not knowing that.

The lenders I've talked to regarding the refi have been less than accommodating when it comes to explaining things. In several cases (I've talked to four), the score was ONE POINT lower than what they would allow for the refi. Perhaps I'll be able to talk to this newest one.

Thank you all for the advice, regardless of how little tact you may have used when presenting it. Anonymity allows for us to be less the polite. Don't take offense to that - you could both tell the facts and show some empathy to those seeking assistance, but you choose not to. I accept that. And I admit you're correct and I slacked, hoping the good credit gods were smiling on me and somehow the divorce had made her a responsible person. I also still hope for whirled peas and the tooth fairy. Once, while waiting in traffic, I realized the car about to t-bone me was NOT going to stop. I tried waving my hands at it in the failed hope that would somehow lessen the impact. It didn't. I guess I'm an eternal dreamer.

 

[tranquility]

Sadly, both tranquility and Sandy are both correct. I could have followed the loan proactively. Doing so would have alerted me to the fact that she was indeed screwing me again. Good point. In retrospect, that would have been a good plan. Since she was already soaking me for enough where I was choosing from a hat which bills to pay, in the long run I couldn't have done a lot to forestall the repo, but I could have contacted the court then to check into contempt.

I did not address what you should have done, I addressed what you can do now.

As for not doing anything wrong, I guess I ASSUMED that the court would order each party to keep current those obligations they were awarded. It never occurred to me that would not be part of the agreement. Shame on me for not knowing that.

Usually, this is addressed by a refinance clause where the notes have to be refinanced within a certain time frame. Did yours? (That would be one of the provisions I talked about that could give rise to contempt.)

The lenders I've talked to regarding the refi have been less than accommodating when it comes to explaining things. In several cases (I've talked to four), the score was ONE POINT lower than what they would allow for the refi. Perhaps I'll be able to talk to this newest one.

It's harder to be flexible in this case because of the government being so greatly involved with the HAMP. They are taking a security risk right up front on an upside down house and would prefer better credit to make up for the risk. The "guidelines" are quite strict.

Try the dispute. Maybe the lender, now that they're paid, won't respond.

 

[Bali Hai]

Well, Sandy, she moved to another state, changed the addresses associated with the account, then hid from everyone for a period of months. I was in no hurry to find her, either.

I never stated, hinted or intimated that I wasn't responsible. Jeez. Instead, what I looked for is some possible help. If you didn't want to help, why opine? Just read it and move on. If what you wanted to do is 'set me straight', well, I wasn't off base to begin with.

I paid for this marriage with 22 years of my life, then followed it up with spousal support and the destruction of my credit. Not to mention the last ten months of the marriage, while I was in and out of the hospital, she paid her bills with my pay and left those in my name only to go into default. (Yes, I know ALL of them were BOTH of ours. OK??? However, some only show up on my credit reports, some only on hers regardless of who was legally responsible. She made sure the ones showing up on HER report were paid. Get it?) She left because I became ill and my income dropped due to disability.

I'm not looking for any answers outside the questions I asked.

SingleDad - thank you - that's the type of information and opinion I was seeking. And pretty much what I thought I needed to do. I was wishing, I guess, that there was something I didn't know. Until today, I'd never heard of writing a goodwill letter. So you can learn something new!

You can't undo what's been done. What you can do is learn from it and provide insight to others in hopes that it doesn't happen to them.

You should not be at all surprised that you are being told everything is YOUR fault even though we both know that just isn't the case.

 

[ecmst12]

No one said that everything is his fault. Only that suing his ex will not fix his credit.