Very serious! My sister needs me to over the payments on her truck.?

Question

My sister and her husband both have new trucks. She is no longer working. Each one of them pay $500 a month a pc. truck notes.
She is very upside down in hers, is needing to get rid of it.
Her payments are $535. monthly for another 4 yrs.
We are discussing giving her my 97' GMC Jimmy and then just taking over the payments(still in her name ) . She owes $19,000 and the truck is Blue Booked @ $11,000.
We wouldnt put it in our name... just leave it in hers. So she wouldnt hurt her credit..
What is your opioion?

Sorry, i tried to edit the header.. My sister needs me to take over payments...

It wouldnt let me edit..... I hope you all understood what I was trying to say....

Answer 1

Unless this is a truck you want for your own, steer clear of the whole situation. If you want the truck, considering the loss of value, have her write a complete bill of sale and make it clear the liability limits and who's truck it is... Personally, I'd want the truck in my name in case the rest of her debt catches up and someone repos the truck in the middle of the night... Or, you loan the truck to someone, they crash and the victim sues your sister for everything? Bummer situation. Good Luck.

Answer 2

Hmm. That's a tough one. On the one end, you want to help your sister out by basically taking the truck off of her hands. Which, you're right, would not hurt her credit. But it won't build YOUR credit either, since the loan would still be in your sister's name. You need to think about this very carefully, since if the truck blue books at around $11k and she owes 19k, in the long run you'll be paying much more than the truck is actually worth. This would make you "upside down" in the loan. (You owe more on the loan than the vehicle is worth to the bank.) I work in insurance, and another factor that you need to consider is your accident coverage. If you owe more than the vehicle is worth, chances are if you are in an accident, the vehicle will most likely "total". (Most people believe that a "total" means that the car is wrecked beyond the ability of being repaired. However, a total loss is actually when the estimated cost of the repairs outweighs the estimated value of the car itself. Not saying you don't know that, just for other reader's educations.) So, you need to really weigh your options before you take over your sister's payments. Maybe it would be a good idea to go to your bank and see what they can offer you in the way of a loan or line of credit to BUY your sister's truck instead. This way, your credit will be building while you make your payments, and your sister will be left with much less debt to her name. Given that the truck is worth less than what your sister owes on it, your bank is definitely not going to pay off her loan. But, if she's having this serious of a financial hardship, a debt consolidation company may be able to help her quickly wipe her slate clean of the balance she'd be left owing. I know that's a lot of information to digest, but I really hope it helps! Good luck to you and your sister!

Answer 3

Changing ownership of the vehicle will not harm your sister's credit. There are two suggestions; 1: Take a loan out yourself for the exact amount her bank needs to consider the loan paid then transfer ownership of the truck to you. This would bring down the interest amount of your loan as you're borrowing less money (I assume) so payments are lower or 2: contact her bank or loan company and have your sister explain her circumstances and that you are more than willing and able to assume the loan. Banks will be thrilled to know that your sister has been honest and forthright about her situation and that they now have someone they can expect payments from. They want thier money and have no desire to sit back and watch as your sister defaults on her payments. If they know about the problem they will be more than happy to find a sollution without taking the truck. It can't sit in an account, nice and neat.

Answer 4

For starters I wouldn't buy the truck from your sister. If you do, I would try to get a loan in your own name to pay for the vehicle, but since you will have to take out a $19,000 loan for a vehicle valued at $11,000 you probably won't find anyone to give you that loan. Finally if you do buy it, get it put in your name. You are paying for it, so it is your truck. If she is not as nice as you are, and decides to take off and brings the truck with her, there would be nothing you could do about it if it is in her name

Answer 5

well if she is very upside down with it now her credit is already hunt a lot and now you want to give her your GMC and pay $19,000.00 for a truck that is worth only $11,000.00 why... on top of that after you get it paid off if your sister got mad at you she could just take the truck back because it would be in her name that makes her the rightful owner...(not saying she will do that but you never know).. if it was mine i would try to sell it out right and if she could not get all $19000.00 see if the bank would let her pay the rest off in payments so if she sold it for $11,000.00 she would have get a lone for $8000.00 and pay that off at a lower payment just my opinion

Answer 6

You're a very nice sister.....I'd do a contract up as well saying she's getting the Jimmy and you're taking the truck, since you're not putting the title in your name. I know she's your sister and family and all, but sometimes family members will screw family over(happened to my dad and his sister), just depends on what's going on in their lives at the time. Good luck!

Answer 7

If you want to help your sister thats fine, but basically by doing this you are giving her $8000 plus the cost of fuel you are going to waste by driving something less comfortable, less safe, and less fuel efficient than the Jimmy.

Answer 8

I think your stupid if you take over the payments.It has already lost $8000. and will keep losing more. Trucks do not hold any value.As far as there credit goes,they should have thought of that before they took on those ridiculous payments.

Answer 9

Been there,done that!!!!(stepdaughter), all it did was prolong the pain!! We took over her car pays,refinanced her Moms(nicer car),and got it in her name,w/me as a co-maker!OCH!?@?!? Her car was trashed by her & her X, I had it fixed, cleaned and made it look as good as possible!! In the mean time,she (stepdaughter)& new man,trash her Moms car,and let it get repo-ed.!! Guess who paid for that one!! I guess it depends alot on the person, I'm done w/$$$ & cars for her!!!! Doesn't mean I don't love her, I do!!