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  • car loan

    My present partner heard this week from his ex-wife that the bank is going to raise the amount of her loan payments for her car. He is a co-signer on the loan from before their separation, but when she left, she wanted to keep the vehicle. However, she has missed payments over the years, which leads the bank to calling my partner, who makes the payment in order to save his credit rating. Now she's saying that she can't make the large payments for the vehicle, which is worth less than a third of what is remaining on the loan. That leaves it up to him/us to pay. And because of her missing payments, the bank is not interested in giving her a break.

    What are our options here?

  • #2
    Not much I bet. He co-signed the loan and the bank don't care.

    Comment


    • #3
      Peggy:

      I believe dadtotheend is correct. When your partner and his ex-wife separated and she wanted to keep the car, he should have insisted she pay off the existing joint loan and refinance the car by herself. Since he is a co-signer on the original loan, unfortunately, the bank can hold him responsible for any and all missed payments until the loan is paid in full.

      If the car is collateral for the loan and no payments are made, I believe the bank could probably seize the car and sell it at auction, but your partner and his ex-wife would still be responsible for the difference between the loan balance and what the bank receives for the sale of the car.

      Linda

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      • #4
        unfortunately you have nothing is this case.....she has you/spouse by the short & curlies........sorry to say.......is sh doesnt pay....you will have to.....if you dont they repossess and still effects your spouse credit whether he is main on title loan or not......sorry about that

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        • #5
          Hi Peggy,

          Just a thought ... would it be possible for your partner to become the owner of the car? Then he could consolidate the car loan with other loans, possibly reducing the interest on the loan. He also wouldn't be responsible for his ex-wife's inability to pay the car loan. Even if he had to "buy" the car from his ex-wife, if he were to become the owner he could then consolidate the car loan with other loans (so the car isn't collateral against the loan) and then sell it privately to recoup some of his $$. In the end, he'd still be responsible for repaying the loan, but as the loan would be in his name only he could use this as an expense in future family court cases.

          Don't know if the financial industry works this way, but it's an idea anyways.

          Fair4All

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          • #6
            This seems to me to be a boo boo on the part of your lawyer(if you had one).

            Under no circumstances is a joint debt a good idea after separation. You should have had something done a long time ago.

            She has all the power here if her name is on the ownership, not yours. You need to tell her it needs to be sold or she needs to buy you out in a promissory note or something like that.

            If the loan isn't that big, perhaps you could pay the loan out and ask her to consent to an order to discount the child/spousal support you pay by the difference between the appraised value and what you paid. Maybe you can get her to agree that you pay some of the CS to the finance company in order to pay down the loan.

            You have an interest in the car now that you have made payments on it anyway. You need to get that back from her some how.


            You have a sticky situation like my partner, whose ex-wife has one of his vehicles and refuses to give it back. He has been making the insurance, financing payments, 407 bills for her on the vehicle for the last two years. He technically can take it back to the dealer but for some reason his lawyer says he shouldn't do it as it would look bad. He can't afford her SUV AND the child support payments and has fallen a little behind on CS so she has the FRO on his back now. He has been paying 600/mo for the car payment and insurance on the vehicle in his name on top of what he has to pay for his kids.

            He asked his lawyer if he could deduct the car from the CS but he says it is faulty math. In a way it doesn't make sense as she is saving that much by soaking my partner for an extra $600/month already!

            What a frustrating system!

            Comment

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