Possible Car Repo

[kameraobscura]

I accepted the car as a collateral for a personal loan 3 years ago. It is registered and is driven in CA. The buyer of this car currently lives in VA and plans to default on the remainder 12 mos payments, citing financial problems. I have offered to assist w/ the loan payments under the condition that the title of this car will be surrender to me via a written agreement: notarized letter to no avail. The buyer of the car, and borrower of the car loan balked w/ plenty indignations. He then stated that let the car be repossessed as he could careless about his credit history.

What are the relevant impacts and ramifications that I should be aware of if this guy goes ahead w/ his plans of loan default? What are the typical repo procedures and how can I protect myself?

Thank you for reading.

[aaron]

You took the car as collateral, meaning what? You held the title? You registered a lien against the title? Something else?

[kameraobscura]

You took the car as collateral, meaning what? You held the title? You registered a lien against the title? Something else?

I made a personal loan to this person; in return, he put up his car as a collateral that he will repay the money I loaned him. The car still has a12mos payment outstanding; therefore, this car's title is held by the bank.

Now, this guy plans to default, on both my loan and the bank's loan to him, which leads to my previous questions.

[Mr. Knowitall]

Until you explain yourself, nobody can answer you. If you're trying to say that there's a line in a promissory note which supposedly makes this car collateral for the note, that's not enough for a repossession. Even if it were, the bank has priority over any claim you have.

If he has defaulted, sue him.

[kameraobscura]

Until you explain yourself, nobody can answer you. If you're trying to say that there's a line in a promissory note which supposedly makes this car collateral for the note, that's not enough for a repossession. Even if it were, the bank has priority over any claim you have.

If he has defaulted, sue him.

I thought I was rather clear in my explanation.

I made a personal loan; the guy put up his car to me as a collateral for this personal loan. He did not put my name on the promissory note. He did, however notarized a letter stating that once the car is paid off, he would transfer the title to me as a payment for my kindness in having helped him.

I recognise that the bank has priority over any claims. I only asked the questions pertaining to physical possession of this vehicle and the ramifications/impact to me now that this guy plans to default on his car loan (the last time I checked w/ the lienholder, he is 90days past due on his payments). I have no problems letting go of the car, in fact, I prefer that this gets taken care of asap, given the gross inconveniences that have taken place.

So, my questions are:

(1) What typical leads to repossession and how does it play out? Keeping in mind that I have the physical possession of the vehicle and not the owner.

(2) What are some legal ramifications that I should be aware of given that I paid one month of his overdue car payment. Have I assume this guy's car loan for helping him out?

(3) Would I be better of telling the financial service to come and collect this vehicle in my locked garage and be done w/ it?

[kameraobscura]

Until you explain yourself, nobody can answer you. If you're trying to say that there's a line in a promissory note which supposedly makes this car collateral for the note, that's not enough for a repossession. Even if it were, the bank has priority over any claim you have.

If he has defaulted, sue him.

My questions have to do w/ "potential" repossession and learning about the "potential" impacts that I am unawared of. Here is my situation: "I made a personal loan to X, who put up his BMW'99 as a collateral for this loan (no promissory note, no title as the bank still holds it until the loan is payments are completed). So far, I have physical possession of this vehicle for the last 3 years (X registered this car in CA using my home address; he also included my name on the car insurance policy). Recently, X emailed me and stated that he has zero intentions of repaying either my personal loan or the outstanding car loan. I checked w/ the financial services that issued the car loan and they confirmed that the car payments are 90-days past due. At X's pleadings, I paid his last past-due car payment. I offered to have the remainder of the car loan lifted under the condition that X sign the car over to me once the payments are completed. X refused. My questions are: (1) Have I assumed X's car loan by having submitted electronic payment to the lienholder to cover the last past-due car payment? (2) Given that X has zero incentives to repay this car loan, what are my best recourse(s) regarding the physical possession of this vehicle? Should I contact the lienholder to come and collect it? Or Doing Nothing is the best thing?