Husband Signed Title Over To His Mother, And Is Now Being Charged With Default

heather1998 · #1 09-20-2007, 06:54 PM

Hey, I am new to all this, my husband purchased a 2000 chevy extreme before we met and were married, he had it about 2 yrs. we got married and got another truck, my husband was getting ready to sell his truck when his mother's car broke down for good, instead of selling it, she wanted the title transferred into her name and obligations. she was the co-signer on the truck, my husband met her at a car dealership and signed and it was done, she was supposed to get the truck refinanced, said she did, and that was that. about 2 yrs. later we get a call from the bank, stating my husband was on the loan and she wasn't paying for the truck, eventually she let the truck go, it was sold and now there is a balance of $4000 to be paid, my husband talked to them, explained the situation they took my mother in law to court and started garnishing her wages, they didn't say anything else to my husband, today 2 more yrs. later, we rec. a call from the bank again, with the same thing, i never had a car loan out or anything except a mortgage and i own my home free and clear, i am worried about what can happen, i was told from someone they can put this on my home even though my home is in my maiden name and bought before we were married. what is the correct process for this situation, is it more than signing a title over to someone else's name? she apparently lied to us about getting the truck refinanced in her name only!

this is so frustrating!! my husband went to a lawyer with the papers that were signed at the dealership and was told that he has no obligation for the truck anylonger last time this happened, b/c it stated under where she signed her name that she is taking all obligation for the truck, expenses, financial obligation, etc. if anyone can help i would greatly appreciate it!!!!

Thanks,
Heather =)

aaron · #2 09-20-2007, 06:57 PM

If he has no obligation for the truck, then... he has no obligation. He can talk to his lawyer again if he thinks the prior advice might have been incorrect, or if something has changed which might make him responsible.

heather1998 · #3 09-20-2007, 07:41 PM

i am not sure, i went to the lawyer with him b/c he was going to file for bankruptcy, but the lawyer said not to b/c he didn't have anything to worry about. i just don't understand why they would say something 2 yrs. later! it's almost like the only time they call is when she isn't paying.

jk · #4 09-20-2007, 08:50 PM

was the dealership the holder of the loan? Unless this was a buy here pay here situation, chances are no.

regardless of whatever contract he signed with the mother, if she did not actually refi the truck, your the loan is/was still apparently in his name and he is still liable for the loan.

He may have recourse against his mom due to the contract you mention but since the lender was not a party to that agreement, it does not affect the original loan.

heather1998 · #5 09-21-2007, 04:21 PM

no it was a bank. can they tie this to my home?

jk · #6 09-21-2007, 04:49 PM

I didn't catch the state but generally, even if it can be tied to your home, it is in the form of a lein and not a forced sale.

For anything to happen, he would first have to be sued and lose. Then the creditor can seek any method available in you rstate to collect. In some states it is very little, in others, it includes garnishment of wages and seizure of bank accounts.

as to attaching to a home in just your name, again, depending upon the state concerned, it may be possible to place a lein since from the time you were married, your husband actually gained an interest in the home as the value has increased.