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  1. #1
    Join Date
    Mar 2008
    Posts
    3

    Default Co-Owner Repossession Rights

    In California -
    I made the down of 4000, coowner was a borrower and on the title as "and"; I made 5500 in payments. One payment was late. Co-owner had the car taken from me -towed, he had no keys - and volyntarily paid off the note in full of 13000. Now he wants me to pay the whole 13000 or he will "keep" the car. He will not use it, he's just trying to extort me into renegociating the contract by which he co-signed. If the car is sold, do we split the porceeds? 50-50 or proportionate to the sums invested. Thanks

  2. #2
    Join Date
    Jul 2006
    Posts
    2,652

    Default Re: Co-owner Repossesion?

    If the car is sold, you can expect the borrower to take the money he is owed out of the sale proceeds.

    It isn't extortion, he wants the money he is out, and didn't want to see his credit get ruined.

  3. #3
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,626

    Default Re: Co-owner Repossesion?

    With the title being "and", I suspect he'll have difficulty selling it without your consent.

  4. #4
    Join Date
    Mar 2008
    Posts
    3

    Default Re: Co-Owner Repossession Rights

    Maybe I wasn.t clear. We were co-borrowers, the note to the lender had not been accelerated and he paid the lump sum without consulting or notice. He had no right of acceleration. He can just wipe out my equity like that?

  5. #5
    Join Date
    Mar 2008
    Posts
    3

    Default Re: Co-Owner Repossession Rights

    Aaron - I know he can't sell it. But if he leaves it just sit (he's afraid to touch it because of what he calls "liability" it will ruin the car. And since he chahged the deal with the lender voluntarily arent I the one that's owed money, or both of us have 50% of the value?

  6. #6
    Join Date
    Jul 2006
    Posts
    2,652

    Default Re: Co-Owner Repossession Rights

    When the one payment was late, he had a right to do what he did. You may not like it, but he was trying to protect his credit.

    Vehicles depreciate, and it sounds like you were the one that had the benefit of using the vehicle, he was just a co-signer.

    That being said, he should get all the money that he is out. You were the one that breached the agreement.

  7. #7
    Join Date
    Nov 2007
    Posts
    811

    Default Re: Co-Owner Repossession Rights

    It sounds like you owe him $13,000 if you want the car.
    It might not be what you want to hear, but he likely made an agreement with the lender that he could pay off the loan for them not reporting the 30-day delinquincy on his credit.

    If you are late just once, the bank can legally repo the car. Generally they wait for 1-3 months, but they can legally repo the car. A reposession would show on his credit, too, even if he "cured" it by paying the loan off in full. This kills a credit score by 50-70 points as most people pay on their car before they pay their mortgage or rent, knowing that it's easier to "pop" a car than it is to evict or foreclose. ...and a vehicle is generally needed for commuting to/from work.

    You see it as "your vehicle", but it is really (well, it was really) yours, his, and the bank's vehicle until it is paid off. It's not extortion; you might want to Google that sometime to get a good definition.

    He likely sees it this way:
    Your lack of responsibility has cost both you and him money and he didn't want it to cost him his good credit.

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