My sisters son totaled the car. The insurance on the car was cancelled a week before the wreck, so of course they are coming after my poor mother. What can the lender do to my mom? She doesn't have any money, but she own a home. Can they place a lien on her property? The lender is calling harrassing my mom. Its just a sad situation. Please help.
2006-09-25 16:25:29 · 11 answers · asked by shoe_diva69 1 in Cars & Transportation ➔ Insurance & Registration
GO TO A LAWYER.....GO TO A LAWYER......GO TO A LAWYER...... It is all going to depend on what the contract says. You are asking regular people about legal questions. Please........GO TO A LAWYER......The first visit is free.
2006-09-25 16:30:33 · answer #1 · answered by rasckal 3 · 3⤊ 0⤋
To begin with, if your sister is half a person she will step forward and take the responsibility to pay off the loan and get them off you mother. If she doesn't, well, since your mother signed she is responsible for the payments that aren't being made. Again, don't cosign for anyone, because these things happen.
They can take her to court to establish that she is responsible, and the amount owed at the time. They can't take her house and put her on the street, but they can put a lien against the property which would have to be satisfied if she were to ever sell or refinance the house. If she is working, they can attach her check for a percentage of her wages. If she has a saving account they can also attach parts of that. If she tells the lender to quit calling and do everything by mail, they have to quit calling. She does need to talk to someone about the situation, and perhaps an attorney would be the best one to talk to IF your sister won't step forward and make the payments.
2006-09-26 00:55:48 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
Have your mother put her home in your name or someone else name that she can absolutely trust.
Hopefully the car is in your sister's name. Your sister needs to step up to the plate and pay the car loan as she is responsible for the debt even tho she was careless with the car by allowing her son to drive an uninsured and unpaid for car that your mother was so kind to sign for with mother's good credit. Your sister is ruining your mother's credit. The grandson better get a job and pay for the car he wrecked. Did he have a license?
Yes, as long as no one is making the car payments they could put a lien on your mother's home.
Your mother co-signed for your sister on a car loan, so therefore she(mother) is responsible only if your sister isn't making the payments.
Check to see when exactly the insurance was canceled; if there ever was any insurance.(banks usually require full coverage insurance on the vehicles). Good until midnight of cancellation date and some insurance companies go ahead and cover you until the end of the month before canceling so no refund, then they usually send a bill....
2006-09-25 23:59:05 · answer #3 · answered by MoonWoman 7 · 0⤊ 0⤋
If your mothers name was on the loan and your sister does not pay the loan, then they can come after her for the money. She will be liable for the remainder of the payments until the car is paid off. If she can, have her get a loan from the bank to stop the harassing calls. That is only if she wants to pay the loan off. If not, depending on the amount left on the debt, she can take your sister to small claims court. If the amount is under $5000 usually or some states its $3000. I would definitely contact a lawyer. They cannot take her property or put a lien on it.
2006-09-28 15:52:16 · answer #4 · answered by country girl 5 · 0⤊ 0⤋
Shoe Diva69:
You didn't indicate who the car is registered to. Are these facts correct. Your sister purchased a car that is registered in her name, but to secure financing your mother had to co-sign the loan, the car insurance gets cancelled and a week later the car is totaled in an accident?
I apologise if I am wrong, but I'm assuming that your sister is a deadbeat. Needing a co-signer means she has poor credit, the insurance lapsing indicates that she wasn't paying the premiums, and the finance company calling your mother indicates she wasn't current with her loan payments either.
The finance compamy is the LEGAL owner of the car until the loan is paid in full, and they want their money. Allowing the insurance to laps violated one of the terms of the contract. If your sister does not pay the outstanding balance, which the lender will probably demand in full since the car is wrecked, they will seek payment from your mother. They can do one of two things: 1. Sue your mother in court and obtain a judgement. To collect that judgement they may or may not be allowed to place a lein on your mothers real property , what ever your state laws permit. 2. They may chose not to "mess around" with collecting and simply write off the loan as a bad debt, and sell their interest to a collection agency. In either case your mothers credit standing will by ruined. Nice sister, huh?
The WORST thing she can do is nothing. Try to negotiate a reduced loan amount or a payment schedule with the lended. They will be a lot friendlier as long as you show that you are trying to work with them.
Once this matter is settled, your mother should sue your sister to recover her losses.
2006-09-27 04:34:27 · answer #5 · answered by Peedlepup 7 · 0⤊ 1⤋
If your mother's name was on the car loan, they can come after her for the money for the car. They cannot go after a house or anything else they are not entitled to. They can sue her and garnish her paycheck, but never take her house. They have no cliam if she continues to pay on the car as was required of the loan. However, one caveat, if the loan said that car insurance needs to be held during the course of the loan (and most do) then she moght be in a bit more trouble - as in the loan could be due all at once. If she can't pay it, then she can't pay it. It's that simple. They can't take her house though. Don't worry about that. Also, to get them to stop calling her, she simply has to mail a letter to them that states that the only way they can communicate with her is throught the mail. Allowing reasonable time to get there, if they call her after that, they are breaking the law and she can sue them. This is the fair credit act speaking. She has lots of rights and really I can't go into them in this forum, but a lawyer can and should be contacted. This could be financially serious. It needs to be worked out. Was the accident the other person's fault? If so, then they might be liable for damamge and have to pay your mom for the damage. Not sure if details, but it is safe to say that there are options and the situation is not futile. Call a lawyer. Please don't listen to those other answers, they cannot, under an circumstances go after her house. Period paragraph. The guy under my answer copied my answer and knows nothing of the law. Yes, they could garnish as mentioned above, no, they cannot any further than that. She cannot claim bankruptcy on just the car, and why would she? That's just plain silly. She can sue the driver of the car also - of course, understanding that they are relatives, she might not want to, but it is an option. I am an attorney, but you should contact one in your area. Give him or her the details and work it from there. Bear in mind that lawyers are not cheap, but the money you spend on a lawyer now, could save you thousands later. Good luck - email if you have any more questions.
2006-09-25 23:31:36 · answer #6 · answered by wonderingunhappily 1 · 4⤊ 0⤋
First of all, I hope that your nephew is okay. And that nobody else was involved in this accident. Secondly, Why isn't your sister taking care of the car loan? Or her son? They should still be responsible for the payments. You mom should consult with an attorney and see what she can do in this situation. If push comes to shove she may have to make the payments herself. I don't think they can go after her house. I've never heard of someone losing their house over a car loan.
2006-09-25 23:37:03 · answer #7 · answered by fiestyredhead 6 · 0⤊ 0⤋
They can ruin her credit, and garnish her paycheck. If she has no money then she might end up having to file bankruptcy on the car loan. Doing this will make it hard for her to get new credit, but it should not affect existing credit as long as she continues to pay her bills, and after a few years she should be able to get new lines of credit again.
I'm assuming that they want the loan paid in full right away because the daughter failed to keep insurance on the car like she is required to do.
2006-09-25 23:33:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes they will come after whoever is on that loan. Yes if things progress to a court situation they can place a lien on the home.. let this be a lesson to you.. don't ever co-sign for anyone... there is a reason these people can't get a loan on their own.. this is it.. especially don't do it if you do not have the resources to pay off the debt on your own... because as a co-signer that is what you are agreeing to do..
2006-09-25 23:34:11 · answer #9 · answered by limgrn_maria 4 · 1⤊ 0⤋
depending how much she owes. They usually put a judgement against your Mom's credit and it will affect her credit anytime she wants to buy anything. If she decides to sell her house they will take their money before she gets hers plus interest. Her best bet is to make a deal with the lender to pay it off slowly.
2006-09-26 15:19:23 · answer #10 · answered by silentlegacy13 2 · 0⤊ 0⤋
She should call the insurance and see if the cancelled insurance extended collision and comprehensive coverage to the lienholder past the actual cancellation date. If there is no coverage, your mom is on the hook.
2006-09-26 06:58:07 · answer #11 · answered by Chris 5 · 0⤊ 0⤋