I'm sooo frustrated!

[DwarfMaster]

I have gotten into a bit of a pickle here & I'm sooo mad at myself!!

I'm in the midst of a nasty divorce.
DH had very bad credit....because he needed a car for work...I financed one for him several years ago. His name is on the loan as a Co-Signer, but I am the Primary Applicant. I now come to find out that my name is not on the title at all ~ only his. Apparently I missed a signature during all the paperwork & my name was not added to the title.

Fast forward to the divorce.......He has the car. He signed in the settlement agreement that he would make payment directly to me otherwise he would have to sign the car over to me. He hasn't made any payments!!

I absolutely can't afford that car. I'm already left with all of the other bills on a single income w/ 2 small children. We're getting by ~ but barely.

I'm not sure that I would be able to sell it since A) my name's not on the title and B) he's upside-down on it....and its not in the best shape.
I see no choice but to let it be repossessed. I understand that this will hurt my credit for at least the next 7 years....but there is no way I can pay for it.

Thanks for listening....I need a shoulder to cry on today!

 

[mickeyboat]

Hugs, hugs, hugs for you. Have you talked to your lawyer about this? Maybe he or she can give you some guidance.

Denae

 

[ziggystardust]

If this was stated in the divorce agreement (that he would pay), and he isn't. Doesn't that give you the right to take the car and collect the missing payments. Def. talk to your lawyer. If you can get the car and sell for something, you are better off than having bad credit for 7 yrs.

 

[DwarfMaster]

If this was stated in the divorce agreement (that he would pay), and he isn't. Doesn't that give you the right to take the car and collect the missing payments. Def. talk to your lawyer. If you can get the car and sell for something, you are better off than having bad credit for 7 yrs.

Sure I can physically take possession of the car.....but I can't pay for it either. Nobody's gonna buy the car...he's owes more than its worth & he's beat the crap out of it. It's junk.
And as far as collecting the back payments...he doesn't have a job ~ I'll never see the money.

Ohhh if I could only turn back time

 

[Jasminesmommy]

If your name is not on it how will it hurt you?

 

[Tracey1974]

If your name is not on it how will it hurt you?

Her name is not on the title, but the loan is in her name. Hope you can work this out!

 

[wendy1974]

Many many On a day when I am kicking myself over getting involved in a relationship with someone only to be lied to repeatedly and have my heart ripped out I know you need the

 

[mudnuri]

I have gotten into a bit of a pickle here & I'm sooo mad at myself!!

I'm in the midst of a nasty divorce.
DH had very bad credit....because he needed a car for work...I financed one for him several years ago. His name is on the loan as a Co-Signer, but I am the Primary Applicant. I now come to find out that my name is not on the title at all ~ only his. Apparently I missed a signature during all the paperwork & my name was not added to the title.

Fast forward to the divorce.......He has the car. He signed in the settlement agreement that he would make payment directly to me otherwise he would have to sign the car over to me. He hasn't made any payments!!

I absolutely can't afford that car. I'm already left with all of the other bills on a single income w/ 2 small children. We're getting by ~ but barely.

I'm not sure that I would be able to sell it since A) my name's not on the title and B) he's upside-down on it....and its not in the best shape.
I see no choice but to let it be repossessed. I understand that this will hurt my credit for at least the next 7 years....but there is no way I can pay for it.

Thanks for listening....I need a shoulder to cry on today!

How can you be on the loan but not the title.......that makes no sense at all

The loan is for the car, if your the name on the loan, you have to be the name on the car.....it honestly makes no sense to me how they could title a car to someone who doesnt own it...

no other advice but I'd dig a bit deeper for this....

oh- how can they repo a car, when you dont own it? The collatoral for the loan, isnt even in your name

Brandy

 

[BriarfoxinWA]

Talk to your attorney. If you signed the loan papers then you should have signed the title application at the same time. If not then the Bank made a major screwed up. You may need to go back to the Bank to help get it resolved.

 

[Laura]

 

[Christine]

No, not everyone on the loan needs to be on the title. I just bought a car, my DH and I are co-signers on the loan. When the dealership asked how we want it titled, we had a choice: husband listed only, husband listed first, wife listed only, wife listed first, etc... Just as long as ONE of the co-signers is on the title that's all that matters. It's different than buying a house. At least in my state it is.

Just for info (OP I know this doesn't help you), but I was reading an article by Suze Orman yesterday in the O Magazine about getting straight financially before heading into a divorce. One of big things she mentioned was squaring off debt like this before the divorce starts. If there are joint loans out (credit cards, car loans, mortgages) each one should be "liquidated" and refinanced in the name of the person who will be taking ownership of the vehicle. Anyway, hindsight is 20/20 but I know there are others on this board who are going through this.

Good luck.

 

[Marseeya]

Talk to your attorney. If you signed the loan papers then you should have signed the title application at the same time. If not then the Bank made a major screwed up. You may need to go back to the Bank to help get it resolved.

Maybe it's different in certain states. My husband has the loan out in his name, but the title is in my name only. It was his gift to me.

OP, I'm very sorry you're going through this.

 

[mudnuri]

okay I still cant grasp this...lets see if this makes sense.

Loan for 30K for Car is in Jane Doe's name.
Car is collateral for loan....

John Doe's name is on title only

Jane Doe defaults on loan

Jane Doe doesnt own the car

How can Jane Doe give back a car she used as collateral that she does not own?

How can the bank take a car, that Jane does not own, for a loan she owes money on.

What would happen if John sold the car to some unrelated person, because he had the title, he can do this...???

John Doe can claim he has no leins on the car- which is true, he doesnt...Jane does....the car to him is clean/free/nolein...nobody can repo it...

I'm lost
Brandy

 

[EsmeraldaX]

How can you be on the loan but not the title.......that makes no sense at all

No, it doesn't make any sense. I work in car insurance and I deal with car loans and titles whenever someone totals their car or has a big payment made. I see this every day.

The title belongs to the bank until it is paid off. It does not go into her or her DH name until it is paid off. It may be REGISTERED to him, but that is not the same as the title being in his name because he does not have the title yet. The registration may be in his and the banks name and if your name is on the loan, you SHOULD be able to remedy a paperwork mistake that probably occurred when the car was registered.

 

[indigoxtreme]

Also it is not a simple matter of reposessing the car. She signed the loan. So once the car is repo'ed and sold, what ever the car sells for they subtract from the loan. Then she is responsible for the balance on the loan. Say car loan is 15,000 the bank repos and sells for 10,000 then she is still responsible to pay the balance of 5,000. The only choice she has is to go back to court and get the judge to garnish her ex's wages to pay for the car or the balance after the bank takes it back. No way around this now that the bankruptcy laws have changed you will always be responsible to pay the balance back unless the courts make the ex pay the balance back. In which case many companies will allow him or you to make very little payments on the balance so it could take years to pay it off. So your credit will be hurt much longer than 7 years. Check with your attorney before you let the bank take the car back.

 

[The Mystery Machine]

My DH says go to the Bank to see the Title. If you are not on the title you can sue the bank.

Our guess is that you are on the title and been misinformed.

 

[jenny2]

She's saying "title" but I think she means "registration". EsmereldaX is right - if there is a loan on the car the BANK owns the car and the title. I have had vehicles where my DH and I both took out the loan, but only I was put on the registration.

 

[Pop Daddy]

hey

 

[CajunDixie]

Just for info (OP I know this doesn't help you), but I was reading an article by Suze Orman yesterday in the O Magazine about getting straight financially before heading into a divorce. One of big things she mentioned was squaring off debt like this before the divorce starts. If there are joint loans out (credit cards, car loans, mortgages) each one should be "liquidated" and refinanced in the name of the person who will be taking ownership of the vehicle. Anyway, hindsight is 20/20 but I know there are others on this board who are going through this.

Exactly what I'm trying to do! But all my friends think I'm nuts that I haven't filed for divorce yet. They think it's no big deal to just file and deal with stuff. I'd rather deal with everything now then file so I don't get stuck with all the bills. And I've gone through both of our credit reports so I don't end up with someting coming back to bite me in the butt later.

As for the OP You need to contact your lawyer and ask their advice on how to proceed.
You might also go over to CreditBoards.com and see if anyone there can help you out tonight.

 

[DwarfMaster]

Thanks to all for your advice.

We are both on the loan....but the bank only has his name on the title/registration. If I were to pay off that car today ~ they would only put his name on it. I have filed a complaint and they have issued paperwork to have my name added...of course it takes 60-90 days.

I'm also not sure if I can just physically take the car from him. I have a settlement agreement saying that if he defults I can take the car.....but since my name is currently not on it ~ is that legal?

I have a call into my lawyer this morning.
I also have a call into a big beefy friend who is more than willing to head over in the middle of the night & drive off in it (Here's a piece of advice to all those trouble making Ex's out there....if you're gonna throw such a big stink about a car and try to hide it from your ex-wife, TAKE BOTH SETS OF KEYS!!! )


So...once I get possession of the car. I still need to figure out what to do with it. I guess I can try to find someone who will buy it, but I know it won't sell for what we owe and I'll be left to make up the difference.