Puzzling Auto Loan Question.Am I Lucky

My question involves an auto loan or repossession in the State of: CA


Hello, great info here....



Ok, heres the thing im going to file for bk. I have joint auto loan with a friend that cosigned with me when i refinanced. I still have a balance of $20K. The thing is, my previous loan company i refinanced through(BofA) accidentally mailed me the title countersigned stating PAID IN FULL. I had the title for months now and I called DMV to check who has my lien and what do you know they have it under BofA still. So they just told me to sign title, pay $15 dollar transfer fee and mail to them and they will reissue title with just my name which I did already.



Essentially, Legally, Technically the car is all mine.



I have stopped paying WAMU and they have been trying to collect from me. My questions are..

Should I even list this on my BK?

They can't repossess right, since they would have to prove to REPO company that they own the car(no title)?

What can they do?



Note: My WAMU loan is listed on all credit reports.



My plan was not to pay anymore and let them repo car but now they can't.



What would you guys do in my situation?

I'm thinking they can haul me to court but I want to wait it out and hopefully see if they would drop it and just call it a loss? I was thinking about selling it too and getting the cash.

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The thing is, my previous loan company i refinanced through(BofA) accidentally mailed me the title countersigned stating PAID IN FULL.

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This is actually true. The bank that held the original loan is paid in full bc the loan was refinanced. The title should have been sent to the bank which you refinanced with.

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I called DMV to check who has my lien and what do you know they have it under BofA still.

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Your surprised its taken a couple of months? and you actually expect the DMV to be up to date?

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Essentially, Legally, Technically the car is all mine.

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That is until the paper work catches up.

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I have stopped paying WAMU and they have been trying to collect from me. My questions are..

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Is WAMU the company that you refinanced with? You didn't say.

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Should I even list this on my BK?

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Assuming WAMU is the refinance company you actually answered it already. You said that WAMU was listed on all credit reports.

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My plan was not to pay anymore and let them repo car but now they can't.

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Stick with your plan. What makes you so sure that the bank can't get the title when they have loan papers?

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I'm thinking they can haul me to court but I want to wait it out and hopefully see if they would drop it and just call it a loss? I was thinking about selling it too and getting the cash.

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Did you think about this...you own a car, a simple run of your record with the DMV will find that you own a car. You also said your planning bankruptcy.
If the bankrupcty court smells a hint of fraud (which is what this is) your entire case could be thrown out. Is it worth it to you? At the very least you should let your bankruptcy attorney know what accidently happened to you. What if you sell it? What about the cash that you now have to account for in your bankruptcy. Oh yeah, your friend is a cosigner, I sure hope they realize what they have signed up for.

You should do the right thing. Your thinking got you in this mess so I for one don't believe it's your lucky day. Not many people here are going to give you advice in how to help you commit fraud because believe it or not, that's exactly what your doing.

even more fun:

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I have joint auto loan with a friend that cosigned with me when i refinanced

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when you file bankruptcy, your friend will be on the hook for whatever is owed on the loan. Worse yet is he will have no claim to the car he is paying for.


actually, he is onthe hook now but apparently they do not want to deal with him as of yet and are sticking with the actual debtor. Once you file BK, your (I'm betting ex-)friend will owe every penny you are trying to avoid paying.

Now, another thing you don;t mention; does the loan state the car is collateral? (I'm betting it does) If so, it matters not if there is a lein on the title or not. The lein is merely a mechanism to prevent you from selling the vehicle without paying the loan. They can still repo the car if the car is collateral.

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They can't repossess right, since they would have to prove to REPO company that they own the car(no title)?

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Not right. A lein does not give ownership to the bank. You were and still are the owner, period. All they have to prove is the car is collateral for the loan you are screwing them on and they can repo the vehicle.


So, you are trying to screw the bank; you will end up screwing your friend.

What a great guy.

Oh, and selling the car and filing BK on the debt (given what you have posted) is fraud and as such, will very likely be removed from your BK and not discharged. This could even get into criminal law if you keep being stupid about this.

no its been a long time already...trust me the title wont be in there name... thanks for your advice tho. i appreciate it.

Actually, I have no idea what your last post even means.

You have posted nothing that would alter my advice.

You do not seem to undestand the title never was in their name and if all they hold is a lein, it never would be unless the repossessed the vehicle and titled it to themselves (which almost never happens). They generally repo and sell the vehicle.

they dont have a lien on my car. all they have is loan papers. worst comes to worst i bet they can just sue me outright. legally i own my car right now cuzzi have title with MY name on it recognized by DMV also.

but...your right prolly not worth it when i go thru with bankruptcy

and like I said, all they need to repo the vehicle is the statement that the car is collateral for the loan. As I said before, the lein is a mechanism to prevent you from selling the car without paying the loan. It is not what allows them to repo the car and it does not affect their claim against you and the car.

and, since you said your friend co-signed, your friend is going to end up paying if they cannot collect from you. I doubt he would be a friend any more.

I know that's the chance a co-signer takes when they co-sign a loan but think about them. They will come after your friend for any balance due if you file bankruptcy. I know though that sometimes bankruptcy is a person's only option.

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Quoting bankruptcyiscool

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they dont have a lien on my car. all they have is loan papers. worst comes to worst i bet they can just sue me outright. legally i own my car right now cuzzi have title with MY name on it recognized by DMV also.

but...your right prolly not worth it when i go thru with bankruptcy

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I don't think your getting it even now. Pull out your refinancing papers and inform us what you listed as collateral for the loan please.

I also don't think they will even touch you with a 10 foot pole. If you list them in your bankruptcy (and assuming that it is discharged), they CANT come after you. They can however, come after the car and your friend and rest assured the banks gonna start with repoing the car and then go after your friend. If you don't get a discharge or don't even file for bankruptcy, they are still going to come after the car and then your friend.

Agree, actually, they will come after your friend no matter if you file for bankruptcy or not since they know there is a co-signer.