Is there any way to sign a loan over?

Question

What I mean is that my mother in law sign to get a car for my husband and i and now she is in a situation where she could lose her home, because of her debt ratio being to high, because of our car. we pay it, but it's in her name, because no one will help us out, because we are young

Answer 1

She will not lose her home because she has a high debt ratio. She will lose her home if she is not making her mortgage payments. Even if she stops paying alll her other debts, she will not lose her home unless she is not paying her mortgage.

So, your car loan in and of itself is not the cause of her problem.

If you are making the payments as you state, then the lender will not repossess the car. The lender will repossess the care only if you are not making payments on the car.

Putting the car loan in your name will not change the risk of her losing he home.

I hope this helps.

Answer 2

Firstly, did she buy the car (own it) or did she just co-sign the loan because nobody trusted a bunch of youngsters starting out (typical stupid banks!)?

Unfortunately, you can only transfer a loan (or refinance) if the loaner agrees or you can find a different loaner to pay off the first one.

Assuming the loan is at the same bank you use for regular banking, you have a stable record the the last while, and you're the ones making payments (and the bank can see this from cancelled cheques or transfers, etc.) it doesn't hurt to talk to them and explain the situation.

You might be able to use leverage if only your M-i-L is on the loan. If they don't give in and she is broke, then you will have to help her out and stop paying the car, which if your name isn't on the loan is not as important, etc. and then you'll drive it for free for months until they get around to repossessing it. (DO NOT THREATEN THIS!!! Banks don't like threats. But it should become obvious in discussions that the best for all concerned is to remove this debt burden from the MiL.) Tell them if the car is in the MiL's name that you don't want to lose the car...

Banks like having all your business -loans, mortgages, credit card interest, cheque account, savings, etc. That's always leverage. Mention that you're asking other banks. Ask other banks.

Answer 3

Stephen is correct in what he said but to answer your question yes you can transfer the car into your name but you have to qualify for the same loan through the bank. You well need to talk to the bank and try qualifing for the loan. If you have made all the payments and have cancelled checks this well often help as well as it shows you have made the payments. Another solution would be to apply to a credit union as they are usually more lenient then traditional banks. Another solution but it well take a little longer is to go to the bank and have you added to her current loan as a co-maker on the note which means you well assume liability along with her, most banks well do this in a heart beat because then they have to people to go after if the loan defaults. The advantage for you is the cars payment history well get reported on your report as well as hers so you'll began to get credit which well make it easier for you in the future to refiance the car or get any credit in the future. Good luck

Answer 4

if you MIL singed for the car then she's on the hook for the car, not you, even if she was a cosigner ( she get the credit rating if al lthey payments are made. not your hubby ), but of the 2 , tell MIL to pay the mortage, you guys keep paying the car. if she brought the car outright ( meaning only she is on the contract ) and it's for you husband ( meaning he's making payments ) then that's a straw purchase, and illegal in many states ( if the bank finds out they can repo the car citing invalid and fradualant contract ).. and depending how long you have the car and it's conditions, banks repo cars with ease due to the resale value at auction, even if it ws repo'd and sold, you still no the hook for the balance of the loan after auction. co signing is bad thing since it puts the more credit worthy party at risk, and does NOTHING to build your own credit rating since the banks will only see her credit line and not yours ( sign a co signer shows and inability to afford credit in the 1st place )