LawyerGuys: question on auto title transfer / loan payments (1 Viewer)

[offdee]

Background facts:

- Couple divorced

- The ex husband is a legit con artist type (all kinds of shady and can't believe a word he says)

- A vehicle awarded to the wife in divorce settlement

- Legal docs state that the ex husband is responsible for continuing to make all auto loan payments / pay it off

- The original loan is somehow connected to the ex-husband's parents...so any missed payments, etc would affect his parent's credit I'm guessing (there is some tie that forces the husband to keep making these payments). The ex husband has no money so we know he is not making the monthly loan payments on his own....his parents are we're guessing to keep it current and not affect their credit.

- Wife's lawyer said she should get the van title in her possession and signed over to her (presently the title is in the husband's possession)

- Husband said he will give her the title and noted that both the wife's name and the husband's dad's name are presently on the title....and asked the wife if she would agree to removing the husband's dad's name from the title cuz "I'd really like to get him off of that" and he promises to continue making the payments. (again, this guy's word means absolutely nothing and he's more than willing to screw her over whenever he can)

She wants to make sure the husband keeps making the payments (as directed in legal docs), but she also wants the title in her possession and be considered the primary and only owner of this vehicle. Does the ex's father's name on the title have any bearing to tieing him to the auto loan payments? If he was removed from the title, would that somehow remove him from ties to this vehicle in regards to forcing them to continue paying the loan?

The goal here is to protect the wife (this vehicle is her only means of transportation and has 3 little kids...losing it somehow or being stuck making the payments on it would be crippling for her)....what's the correct way to handle this to protect her?

She's going to talk to her lawyer about this as well, but wanted to get some insights here as well for my own knowledge. Appreciate any thoughts.

 

[CletiusMaximus]

Assuming all standard disclaimers, what matters to the ex wife regarding payment responsibility is the obligations in the loan docs, such as the ex FIL listed as guarantor. I don't think the car title affects that obligation. I'd want to see the loan docs.

 

[Mr. Retukes]

The only thing preventing the ex-husband from stopping payments is the fact that his dad's name is on the title.

 

[StrikeS2k]

With every new car I ever bought the title went to the entity making the loan; the lienholder. After the last payment was received they sent it to me.

 

[offdee]

The only thing preventing the ex-husband from stopping payments is the fact that his dad's name is on the title.

This is what I'm worried about. Im just not fully clear on how the title and the loan tie together. Why exactly would his name not being on the title anymore relieve his father from responsibility for the loan?

 

[Christo]

The bad news is that there's no way to guaranty the ex makes the payments.

 

[belljr]

How do they have the title if there is a lien?

 

[Juxtatarot]

The only thing preventing the ex-husband from stopping payments is the fact that his dad's name is on the title.

This is what I'm worried about. Im just not fully clear on how the title and the loan tie together. Why exactly would his name not being on the title anymore relieve his father from responsibility for the loan?

Being a borrower can be separate than being an owner. I don't think she can get a new title unless the lender is paid off or agrees to the change. The dad will also need to sign off.

 

[The Big Guy]

I can't imagine the loan company letting any person that they have on the title off of it

 

[Juxtatarot]

How do they have the title if there is a lien?

Wisconsin works differently than most states that way. They need a form from the lender to release the lien.

 

[offdee]

How do they have the title if there is a lien?

This is a good point. Nobody should actually hold the official title doc until the full loan is paid off....is that correct?

I wonder what he says he has that he's going to give to her then....could he have a photocopy of the title possibly?

 

[belljr]

How do they have the title if there is a lien?

This is a good point. Nobody should actually hold the official title doc until the full loan is paid off....is that correct? I wonder what he says he has that he's going to give to her then....could he have a photocopy of the title possibly?

maybe different states work differently but here you don't get the title until the loan is pif

 

[Juxtatarot]

I can't imagine the loan company letting any person that they have on the title off of it

As a lender, I've sometimes allowed stuff like this when we've had a good relationship with the borrower and I'm not too worried about future drama or problems. There have been other times that I've forced them to pay the loan off first.

 

[parasaurolophus]

I live in Wisconsin and when I had a loan I was paying off, I still had the title. It didnt do me any good though because the bank was listed on it as well.

So when you buy the car, the bank perfects the lien. The bank, you, and I think DMV get a copy of the "confirmation of security interest(lien) perfection". The back of this form has the release on it. When the loan is paid off the back of that form is filled out and then only sent to the person paying off the loan. Then that form needs to be taken to DMV in order to get the bank off the title.

 

[offdee]

Just found out a little more info...for whatever it's worth.

- Ex husband and Ex husband's dad co-signed the original loan together.

- A couple years ago the ex husband got a DUI and wouldn't install that blow in device in his car....since the van was also in his name (but solely driven by the wife) they ordered to have that breathing device put in the wife's van even though the husband never used it.

- They went through the courts and to avoid this the husband had to remove his name from the title and add the wifes name to it...so that is how the title now has both the husband's dad and the wife's name on it.

She remembers her lawyer telling her that the best case scenario would be that her name is on the title and not on the loan...so now legally she owns it, but is not tied financially to it. Is that what has happened here?

Loan: in husband and husband's dad's names

Title: in wife and husband's dad's names

ETA: I'm just wondering if there is any advantage at all to her to agreeing to remove the dad's name from the title (even if she could, that is).

 

[parasaurolophus]

Just found out a little more info...for whatever it's worth.

- Ex husband and Ex husband's dad co-signed the original loan together.

- A couple years ago the ex husband got a DUI and wouldn't install that blow in device in his car....since the van was also in his name (but solely driven by the wife) they ordered to have that breathing device put in the wife's van even though the husband never used it.

- They went through the courts and to avoid this the husband had to remove his name from the title and add the wifes name to it...so that is how the title now has both the husband's dad and the wife's name on it.

She remembers her lawyer telling her that the best case scenario would be that her name is on the title and not on the loan...so now legally she owns it, but is not tied financially to it. Is that what has happened here?

Loan: in husband and husband's dad's names

Title: in wife and husband's dad's names

ETA: I'm just wondering if there is any advantage at all to her to agreeing to remove the dad's name from the title (even if she could, that is).

Something doesnt add up here. Why would the dad want his name off the title, but not off the loan?

 

[Juxtatarot]

Just found out a little more info...for whatever it's worth.

- Ex husband and Ex husband's dad co-signed the original loan together.

- A couple years ago the ex husband got a DUI and wouldn't install that blow in device in his car....since the van was also in his name (but solely driven by the wife) they ordered to have that breathing device put in the wife's van even though the husband never used it.

- They went through the courts and to avoid this the husband had to remove his name from the title and add the wifes name to it...so that is how the title now has both the husband's dad and the wife's name on it.

She remembers her lawyer telling her that the best case scenario would be that her name is on the title and not on the loan...so now legally she owns it, but is not tied financially to it. Is that what has happened here?

Loan: in husband and husband's dad's names

Title: in wife and husband's dad's names

ETA: I'm just wondering if there is any advantage at all to her to agreeing to remove the dad's name from the title (even if she could, that is).

Sure, as long as the dad is on the title, he also owns it. The divorce settlement has no bearing over the father. He could make things ugly down the road by demanding his interest be bought out.

 

[offdee]

Just found out a little more info...for whatever it's worth.

- Ex husband and Ex husband's dad co-signed the original loan together.

- A couple years ago the ex husband got a DUI and wouldn't install that blow in device in his car....since the van was also in his name (but solely driven by the wife) they ordered to have that breathing device put in the wife's van even though the husband never used it.

- They went through the courts and to avoid this the husband had to remove his name from the title and add the wifes name to it...so that is how the title now has both the husband's dad and the wife's name on it.

She remembers her lawyer telling her that the best case scenario would be that her name is on the title and not on the loan...so now legally she owns it, but is not tied financially to it. Is that what has happened here?

Loan: in husband and husband's dad's names

Title: in wife and husband's dad's names

ETA: I'm just wondering if there is any advantage at all to her to agreeing to remove the dad's name from the title (even if she could, that is).

Something doesnt add up here. Why would the dad want his name off the title, but not off the loan?

Who knows. The ex husband probably thinks that the title and the loan are tied together...and if you remove him from the title he magically disappears from the loan too. That was at the heart of my original post...making sure that is definitely not how it works.

 

[Mr. Retukes]

For this much hassle she better be at least an 8.5.

 

[belljr]

For this much hassle she better be at least an 8.5.

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