I financed a bike for a friend and I need to transfer the title to his name but he has no credit whatsoever?

Question

My family found out that I financed a bike for a friend and wants me to get rid of it to him because they said if he messes up with payments or gets into trouble, I'm responsible which I know, but took the risk. I need to change the title to his name but the bank holds the title. He recently came to the states and he has no credit whatsoever so him getting a loan is out of the question. Is there another way to put my family at ease via a contract saying I'll transfer the bike to him and if he defaults on payments, he is obligated to pay me and I don't hold responsibilty for the bike? Or is there a way to transfer the title to his name but at the same time, I continue to finance the bike? I trust the guy that's why I took the risk and he's on time with his payments but my family doesn't care. Need help and solutions asap! Thanks!

Answer 1

If he has a job he can get credit, irregardless of whether or not he has a bad or good credit history. He just has to get a loan for the balance owed to your bank, then the new creditor will be the lien holder with his name on the loan agreement and registration. For starters try this website.http://www.motorcycleloancenter.com/

Answer 2

Bad move, as mentioned in other comments. You are taking a big risk. I bet you his insurance is not paid up. But you are checking that every month right, no of course not.
So if that bike is stolen or wrecked you will be liable for the entire amount of the loan. Did you know if he has an accident and someone is killed or injured you will most likely be brought into the lawsuit. Nightmare. Oh yeah, you want more happy new, hope he does not get any tickets like going through a speed/traffic signal camera, you will be liable for the ticket.
The only way to get off the loan is to pay it off.
Sit down with your parents and go over the entire situation. Admit you made a mistake and get out of this situation. Get all the paperwork together. I don't care if this guy is a priest or you think he will pay off the account, that is not the issue. I have dealt with this 100s of times in my work, everyone says the same thing.....I thought for sure he would pay......

As for your idea of a contract. Sorry just silly. So you have a contract and he does not pay, you will have to sue him, win the court case, and then try to collect the debt.
Solutions. 1. Get the bike back and have him make large payments, then when it is paid off he can have it.
2. Get bike back and sell it for whatever you can get.
3. Tell him to borrow the money from a family member and pay off the loan.
Good luck.

Answer 3

THE ANSWER IS NO TO ALL THE QUESTIONS! the only way out of this problem is to sell the bike. you can not transfer a title without selling the bike or paying it off in full to release the lien . you are responsible for the bike and that's it. you can have all the contracts you want between you and your friend. the only one that matters is the one between you and the bank. plain and simple sell the bike or risk having your credit destroyed if he defaults.

Answer 4

First, I'm going to assume you WANT to do this; if you're over 18, then your family presumably can't force you to do it.

That being said, there's no way to transfer the title until the debt is paid. Since the bike is techically yours, you can potentially sell it, but of course that won't do anything for your friend or your friendship. The only other thing I can think to do is to refinance it with you as the cosigner rather than as the owner; however, you're still in trouble if he decides not to pay. On the whole, I'd say leave things as they are; if worse comes to worse, it IS your bike, and you can sell it.

Wish I had a better answer for you. Good luck.

Answer 5

This is a bad situation. The only way to get that bike outta your name is to pay off the loan and resell it to him.

If you financed the bike, (motorcycle, not bicycle, I assume), then you are also liable to insure it in case the bike gets wrecked or stolen. Are you carrying the insurance? If no one is, you are asking for a lot of trouble with this bike. If dude gets pulled over with no insurance and no proof of registration in his name, he could go to jail and the bike get impounded and YOU will be liable for no insurance, and for all impound fees. Even worse, if he gets in a wreck with an uninsured motor vehicle.....YIKES!

You need to get that loan paid off as soon as possible and get it out of your name. Never do this again. You can ruin yourself financially by taking on legal responsibilities for a driver you cannot control.

Answer 6

DUDE!!. Been there done that ruined my credit and messed up the bike. You will have to live with it or sell the bike to someone to get it out of your name. I know you want to help, but let him establish his own credit. Your co-signing really doesnt help him at all, in more than one way. Dont ever co-sign for anyone. There is some reason they do not have their own credit. It took me 7 years to reestablish my credit.

Answer 7

The only assurance you have that he will follow through on making the payments is the fact that you can "repo" the vehicle if he defaults on the deal. Whatever you do, do not place yourself in a position where you cannot take possession of the vehicle if you need to exercise your right.

Answer 8

Don't worry about it. Money doesn't grow on trees. If he defaults, just pay for the bike and ride it yourself. Tell Mom and Dad that you're just going to have to let it play out. Don't yell and act like a moron. Just tell them that he can't pay for it, and you're stuck with it, and you're to let it play out. Calmly.

Answer 9

you are able to bypass down to your DMV place of work with the customer. clarify to them which you only have been given the motorbike, and prefer to sell it to a diverse, teach them the identify and that they should assist you.