Co-signer's regret for helping with a car loan

muskratbyte · #1 03-20-2006, 09:42 AM

After quite a bit of pressure, I agreed to co-sign for my younger sister. She was living with me, and honestly we were tired of driving her everywhere.

Since then, she hasn't been making the payments on time, and I'm tired of getting called 15 times a day. I've found someone who wants to re-finance her car himself (why I don't know, but I'm not looking a gift horse in the mouth). I've talked to her about it, and she doesn't want to give her up car. As I've pointed out to her, I can't afford to keep making insurance and car payments for her, so that she can pay me back when she gets around to it. I also don't need five years of bad credit history based on this.

The financing company listed me as the primary, and her as the secondary. Is there anything she can do to keep me from selling the car to this other guy? Also, when the financing company sends me the title, is her signature even necessary to sign the title over to him, so that he can send it to his financing company?

I'm in TX.

Thanks,
Susan

aaron · #2 03-20-2006, 12:32 PM

Is the car title in your name, her name, or both?

muskratbyte · #3 03-23-2006, 05:11 AM

The car is in both of our names, however I believe I'm listed as the primary.

I talked to her last night, and told her my husband and I would drive her to and from work and would try to help her out until she could get another car. I don't want the person who wants to buy the car to get tired of waiting, and go elsewhere, since this may be my only chance to get out of this. I'm supposed to get an answer from her today.

Can I take her to small claims court? I'd always heard it's a $35 filing fee, but I'm not sure who to contact to file proceedings even if I needed to.

Mr. Knowitall · #4 03-23-2006, 06:06 AM

If you're the primary owner, you should be able to simply take possession of the car. (Check the title, then confirm your rights with a local lawyer or the local police department.) But if she is on the title, you need her cooperation and permission to sell it - or a court order overriding her objection.

You can check with the small claims court to see if they can give you any meaningful relief. To resolve the problems you probably need a court order authorizing you to sell the car if she doesn't refinance, and that is an order that many of the nation's small claims courts are not empowered to grant.

muskratbyte · #5 03-23-2006, 07:21 AM

Thank you! She's supposed to call me back tonight and let me know her 'decision'. So, if she decides that she won't hand me the keys to the car, I'll try this as my next avenue of approach.

thanks,
Susan

muskratbyte · #6 03-23-2006, 07:55 PM

Well, we spoke tonight and she's getting legal advice from 'armchair attorneys' who tell her that she should get back part of what she's paid on the car, and is demanding payment of 800.00 before she'll turn over the car. My seller will back out tomorrow if I can't nail down the details. This, on top of her car insurance for this month that I've already paid. My husband and I have offered to drive her to and from work. I've offered to help her find another car. I offered her 500.00 from my tax return to hand me the keys. The buyer already has 300.00 ready to make this month's car payment for me. . to give us time to for him to re-finance the car.

So. . . after all of this, I've let her live with me for 8 months, co-signed on a car to help her, etc., she's trying to extort money out of me, that I don't have before she'll hand over the keys.

I don't know what else to do. I can't handle 12 years of bad credit (five for the car loan, + another 7 years to discharge the bad credit). Is there an attorney out there in DFW area that would be willing to work on contingency to help me?

The only ace in the hole I have is that I know for a fact that she committed tax fraud. It wasn't a mistake, she went to someone who falsely filed a dependent she didn't have on her taxes. (the person who did her taxes got a cut, and the lady with too many kids to claim all of them got a cut) I hate to do it, but I know if I report her for tax fraud she'll go to jail.

Help please.

muskratbyte · #7 03-27-2006, 09:20 AM

Well, I'm posting a follow-up just to see if maybe what I've learned will help someone. I'll sum this, and cut to the chase.

I paid a repo guy to repo the car for me, after calling the financing company, an attorney and the FtWorth police to make sure I was within my rights to do so.

I called the dealership - and for 12.99 and a copy of the driver's license to prove I'm the person on the note, they will make me a key. Once I get the key this afternoon, I'm cleaning out the car (its full of ashes) and contacting my buyer to let him know I'm ready to start the paperwork.

Lessons learned:
1) Don't ever co-sign. NEVER.

2) If you are the principal on the loan, you can collect the vehicle (at least in TX). The police will not respond to claims that the vehicle is stolen - it's a civil matter.

3) If you are in DFW area, and in my predicament - the guy you want is Dwayne, at 469.853.1687. He's an awesome guy, and gave me a discount because I knew exactly where the car was, and waited for him to arrive and haul the car off. He's very friendly, and professional. I hope to never be in this situation again, but I'd call him again in a heartbeat.

Thanks, Mr.Knowitall for your help! Hopefully this knowledge will be helpful for other people. Just make sure call 1) the finance company, 2) verify it with the local police dept, 3)It's a good idea to double-check with a local attorney. AND - before you pay someone to re-key the locks or make another key for you, try calling a local dealership with the VIN number - as long as you are the person on the paperwork, and can bring your driver's license as proof of who you are, it may be a LOT cheaper to get the key from them.

Thanks!
Susan