fourwheeler was about 8k and he still has about 6k to pay it off and i want to take over the payments on it he hasnt payed a cent on it for atleast a year and a half then he moves to a new state....i think i know the bank he took the loan out from and i just got off the phone with them and the loan lady was not in but she will call me when she gets in ..... what should i ask her? im ony 17 but i work i make about $300 a week... can this be done me taking the payments over the owner of the fourwheeler says its ok but he is not making any effort to call anyone..also when he moved he left the fourwheeler at his house it probably hasnt been ridin in a year its just sitting at his old house...=( so pretty much what i need to know is what should i say to the loan lady when she calls me and if this is possible since im 17 and alll.....any info will help! thanks.
2007-02-07 01:37:54 · 8 answers · asked by straight pimpin 1 in Business & Finance ➔ Credit
I wouldn't even try to do that. The guy defaulted on that loan, his credit is probably in ruins by now. Why do you want to get in the middle of it? If you just try to take over payments, they will probably want you to cover all the interest and fees for the whole year... You will be much better off buying yourself a brand new vehicle. The one that has not been ridden in a year is probably not even that good anymore. Just leave it and move on, don't take on someone else's head ache. Better yet, it's winter, just keep saving money and when you save enough buy yourself a brand new four wheeler. You may need your parents to co-sign. The deal you are describing is a bad news. Don't touch that vehicle, don't take over payments, let your friend deal with it. He will one day when he wants to buy a house or a car or get any other kind of financing.
2007-02-07 01:55:15 · answer #1 · answered by Alexander K 3 · 0⤊ 0⤋
Sorry this has happened to you. They can actually take you to court and sue you. Or should I say that they WILL take you to court and sue you. The judge will rule in their favor also. This happened to my brother a few years back. Just so you will know, you can purchase Gap insurance when you purchase your next vehicle. It only costs me a one time fee of $100 for my bank. This insurance will cover the difference between what you owe and they value of the vehicle. It is a pretty good investment for the money. Especially if you are that far in the negative do to having such a high interest rate. My best advice to you is to keep paying the original loan, because if you don't, you will end up having to pay the court cost plus extra fines and penalties. You can probably get an extension on the original loan if you call them up and ask nicely and explain your situation. Good luck! EDIT: Some of the above answerers have stated that your insurance company should pay for the damages. This is not true. Your insurance company will only pay what your vehicle is worth. You have to have Gap insurance if the damage exceeds the loan on the vehicle. That is the way it works in the great state of Florida.
2016-03-29 09:22:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In a word. No.
I'm assuming there is a loan contract?
The details on whether you could do this would be within the loan contract. But generally it is not kosher.
The 'loan lady' would have the power to take the asset, and try and re-sell it, but you would be competing with other buyers for the fourwheeler. I would also say that because, the loan company is going to loose money on this transaction, she would be looking to get as much money from the sale as possible (including your friends repayments, that he hasn't paid).
Even though you want to 'step in' and take over the contract. It's generally not looked favourably upon. Since you know your friend, the transaction that you want is not at arms length, this is a legal term which means that you know your friend, and the transaction would be to the possible detriment of a third party.
It's also important to clarify that your friend OWNS the 4-wheeler, but the loan company has a charge over it, a mortgage. So if for whatever reason, he cannot pay, they can sieze the goods for sale to recover their money. But the subsequent transaction musy be at arms length and generally offered to the general public.
General points to ask / tell the 'loan lady':
1. Outline your situation.
2. Tell her you want to take over the loan contract, AND CAN MAKE REPAYMENTS.
3. Cross your fingers.
You may have more luck if your friends loan contract is with a smaller institution than with a large one. I would be surprised if they fulfilled your request. But you never know your luck in a big city...
Good Luck.
2007-02-07 01:53:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Regardless of the legal options, you would be much better served by finding another four wheeler and getting a loan for that one. The four wheeler you speak of likely is worth far less than $6k.
You would need a cosigner since you are a minor, but I would keep that $300 a month and save for your own toys.
2007-02-07 01:52:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it would be difficult to take over a loan like that.
the bank will probably try to reposses the fourwheeler, and then try to sell it for what they are owed on it...if they cant what they are owed, they will probably sell it for anything they can get.
Tell the loan lady you know where the vehicle is, and see if she will work with you.
2007-02-07 01:43:52 · answer #5 · answered by gary d 3 · 0⤊ 0⤋
agreed with above but also you will likely need a cosigner over 18 since most banks wont provide a loan to a minor
2007-02-07 01:48:14 · answer #6 · answered by john c 2 · 0⤊ 0⤋
I used www.mycashnow.com.
Use this referral code: PHJZRW
It is a good site. I applied and received my loan in I think 1 or 2 days.
They are really professional and provide great customer service.
2007-02-10 16:11:05 · answer #7 · answered by 123 1 · 0⤊ 0⤋
Taking over payments constitutes a contract . Minors cannot enter into legally binding contracts.
2007-02-07 01:49:26 · answer #8 · answered by lurned1 3 · 0⤊ 0⤋