My friend asked me for advice the other day and I wasn't sure what to tell him. His 21 yr old son bought a new car 6 months ago. His father had to co-sign the loan. The son agreed to make weekly payments to the father for the loan, insurance and taxes and the father took care of making sure they got paid on time. The son hasn't made any payments in 3 months and refuses do anything about it. He has a job but would rather spend his money partying. The title and registration for the car are in the son's name (with the bank listed as leinholder). The father would like to just stop paying the loan and let the bank repossess the car but he doesn't want his own credit ruined. Can he take possession of the car until the son pays his debt or sell it to pay off the loan? The son will not give up the car readily. The father wants to just take it and hide it then tell his son he can have it back when it's paid for. Can the son report the car as stolen?
2006-12-17 00:53:57 · 13 answers · asked by Mike 3 in Politics & Government ➔ Law & Ethics
Take the key,s until he pay,s
2006-12-17 00:56:17 · answer #1 · answered by Bella 7 · 1⤊ 1⤋
Technically, the car belongs to the son. But your friend can take his son to court and make him pay. He could also request that the court order the son to refinance the vehicle and take his name off the loan. That way if the son refuses to pay the loan it won't affect your friend's credit rating. Should the court not order a refinance, at least the father would have paperwork stating that his son is responsible and that the son was court ordered to make the payments on said vehicle. He could also put a lien of his own against the car. Check with the local court house. That way if the car is paid off by your friend, the son can't actually get a clear title until the money your friend has paid against the loan is paid back to him by the son.
2006-12-17 01:39:42 · answer #2 · answered by Mary J 4 · 0⤊ 0⤋
No, it is not easy. The man signed a contract and can't just walk into the bank and get out of it. Banks are not in the business to be nice and forget about signed agreements.. They are in the business to make money.
The father needs to speak with the banking agency that holds the note and explain the situation. I am sure his situation isn't an isolated case. I am sure it has happened to someone else before.
This is a tough one.
Yes, the son could report the car as stolen. On the title it is his name, he owns the car. The father does not have any claim to the car itself he only has the responsibility of making sure the car is paid for. It is unfair but it is the way it is.
2006-12-17 01:09:10 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I just went thru this myself..I cosigned for a firend who stoped pasying and was 3 months past due..the bank said they would transfer the title to my name if i refinanced the vehicle in my name w/o hers..legally he has no right to take the car from his son..i contacted my lawyer to ask this very question. if he takes the car his son can have him arrested for auto theft. Either the son can voluntarily refin the car in his own name, sign the title over to his father or the father can refi the car and the bank will transfer the title into his name at that point he can take possesion of the car legally. If he allows the bank to repo the car it will put a repo mark on his credit..not good..his best bet is to refi the car himself and have the bank trans title to him then with an officer present he can go and retrieve the car from his son.
According to my lawyer I could sue my friend for back payments but b/c my name is on the loan it would cost more than i would get if anything. The courts would see my name on the loan and see that i am responsible to ensure pymts made on time. I worked with my lawyer several times on this matter because i didnt know what to do. I called the bank and they suggested to refin the vehicle so they could trans the title in my name and then i could take posession of the car. When i told my ex-friend about this and her parents she made paymtents so that she wuoldnt be carless..
2006-12-17 01:15:08 · answer #4 · answered by Anonymous · 1⤊ 0⤋
never observed this comming? of direction you probably did. The financial company knew you; it relatively is the reason they gave your son the non-public loan. once you co-sign for somebody else, you assure to the creditor that the debt would be paid. you probably did. you haven't any longer have been given the different selection different than making specific that the financial company gets its money before they wreck your credit. What approximately your son? properly, if he refuses to pay, your only recourse is to sue him in civil courtroom. you will get a judgment against him. yet bear in suggestions, getting a judgment is the undemanding section. gathering on that judgment is the authentic undertaking. As a convenience, judgments are reliable for 10 or extra years, and that they are renewable.Judgments are additionally mentioned to the credit bureaus. A judgment could desire to hang over your son's head for a protracted time. never, never, never co-sign for absolutely everyone else except you're prepared and able to pay the debt your self. Take care
2016-10-05 10:18:10 · answer #5 · answered by murchison 4 · 0⤊ 0⤋
Yes, it's an issue for a court if the son is refusing to deal with this. It just goes to show, however, that parents need to stop treating their grown children as if they are still children. Let them take care of their own lives so they can learn the same things and in the same way most of us did. Stop the hovering NOW.
2006-12-17 01:45:54 · answer #6 · answered by The Scorpion 6 · 2⤊ 0⤋
That's easy. Pull the boy to the bank. Have the boy remove the parents as the co-signor. In that case, the liability goes to the son - not the parent. If the son defaults or is unable to pay, his own credit history will be the one to take the toll - not the parent's.
2006-12-17 01:05:23 · answer #7 · answered by Twojuly82 2 · 1⤊ 2⤋
He has two options let the car get repo and deal with the credit issues later. Or sue his son in court. Unfortunately he has failed at raising his son. If he was in the Mid East he at least could stone his son to death without any legal problems,.
2006-12-17 01:01:39 · answer #8 · answered by Anonymous · 2⤊ 1⤋
Your friend had better talk to an attorney or even his bank before doing anything. Don't steal the car or he might go to prison.
2006-12-17 04:36:25 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Tell the lender about the problem ... maybe they can give some good advice/ideas on what to do, so your friend won't ruin his credit.
2006-12-17 01:04:21 · answer #10 · answered by Sis 1 · 2⤊ 0⤋
Bring car back to the dealer.
2006-12-17 00:57:57 · answer #11 · answered by Anonymous · 0⤊ 1⤋