From: jms@vision.sarnoff.com (Jerry Shapiro x2420)
Newsgroups: misc.legal
Subject: Re: getting a loan out of my name
Date: 2 Sep 92 20:26:12 GMT
Reply-To: jms@vision.sarnoff.com
Organization: David Sarnoff Research Center

In article 5014@ecst.csuchico.edu, rgoldstone@OAVAX.CSUCHICO.EDU (Robin, Girl Wonder) writes:
>Two years ago I secured an auto loan for my then-girlfriend.  She had recently
>started her own business and the banks required 3 years worth of income tax
>records for self-employed people.  Since she was not in business for three
>years and could not produce these records, she could not qualify for the loan.
>The car cost $12,000.  She put down $4000 cash and I borrowed $8000 for her.
>Her name is not on the loan as a co-signer.  Both of our names are on the
>insurance and registration.
>
>I am no longer in a relationship with this person and want my name off this
>loan.  I have concerns that if she ever gets in an accident and injures 
>someone, the lawyers would come knocking at my door.  My assets are far greater
>than hers.  She is unwilling to pursue re-financing the loan in her name. 
>This is her third year in business and she has not yet filed her income 
>taxes, so she would probably still not qualify.  She makes the monthly payments
>regularly.  She says I am being neurotic by worrying about the accident
>thing.  I think it is a totally realistic concern.  Legally, I *can* be
>held responsible since my name is on the loan, insurance and registration.
>I cannot get my name off the insurance.  The bank requires that the car be
>insured in my name, since I have the loan.  I cannot get my name off the 
>registration.  The insurance company requires that the car be registered in
>my name.  
>
>I do not know a way to "force" her to get her own loan.  I see three choices:
>1) leave things the way they are for the next 2 years and hope she doesn't get
>into an accident
>2) forfeit on the loan.  The bank would reposess the car.  No skin off my
>back since it is not my car.  However, my credit record would obviously
>suffer (for 7 years?) if I do this.
>3) have her name taken off the registration and insurance and in effect 
>pretend that the car is mine.  There is really no legal way she can prove
>she owns the car.  Everything is in my name.  I don't really want to do this
>to her though.  I am not trying to be mean, but she won't cooperate with me
>on this.
>
>Does anyone have any better suggestions for me to pursue?  
>Thanks in advance.
>
>***********************************************************************
>Robin Goldstone, Systems Software Specialist
>California State University, Chico  Computing Services
>rgoldstone@oavax.csuchico.edu


Simple:  Plan A 1) Pay off the loan. Use your assets to get a personal
loan if you have to.  2) Sell her your ownership rights in the car in
exchange for a note and lien that has exactly the same terms as the car
loan (not the unsecured loan). She pays you instead.  3) You keep the
title in her name with the lien, 4) You are off the registration and
the insurance.  5) You lose a little money, she comes out exactly the
same.

or

Plan B: Buy a lot more insurance so the lawyers won't have to come
knocking at your door.

She does have ownership interest in the car if her name is on the title.

Hope this helps.

Jerry Shapiro
These are my opinions and not my employers.
Newsgroups: misc.legal