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Loren
Loren, Attorney
Category: Legal
Satisfied Customers: 30311
Experience:  30 years experience representing clients.
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My ex fiance were living together and planning to get

Customer Question

my ex fiance were living together and planning to get married so I was trying to clean up his credit... He had purchased some toys so in attempt to try and reduce the interest rate he took out a personal secured loan against my car to reduce the interest rate. His name is ***** ***** name on the loan but my name is ***** ***** the title and registration. Now that we have split the bank wants me to perfect the lien; however, I don't want to give him ownership to my car (which I had paid off- it's technically his debt). I think he stopped making payments- what can I do so the bank doesn't try and repo my car?
Submitted: 1 year ago.
Category: Legal
Expert:  Loren replied 1 year ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

Customer: replied 1 year ago.
Hi Loren, if you prefer please feel free to call me at(###) ###-####
Expert:  Loren replied 1 year ago.

Was there an agreement that your ex would make the payments? Has the bank given any indication that they are planning to repossess the car?

Expert:  Loren replied 1 year ago.

If you wish a phone call you would need to accept the additional service offer.

Expert:  Loren replied 1 year ago.

Was there an agreement that your ex would make the payments? Has the bank given any indication that they are planning to repossess the car?

Customer: replied 1 year ago.
is the personal secured loan not considered an agreement? The bank will not release any information to me since the loan is only in his name.
Expert:  Loren replied 1 year ago.

An agreement between you and him?

Customer: replied 1 year ago.
verbally, yes... so he has the collateral that the personal secured loan was used to purchase, and I think is now trying to just stop paying on the loan. I may have some text messages/emails saved.
Expert:  Loren replied 1 year ago.

The problem is that you can not stop the bank from taking action if your ex defaults on a loan for which you put up your car as collateral. What you would need to do is either let them repossess it and then sue him for the value of your car, or make the payments and sue him for reimbursement.

Expert:  Loren replied 1 year ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not necessarily a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.

Customer: replied 1 year ago.
they can still repo it when only my name is ***** ***** title and registration and only his name is ***** ***** loan?
Customer: replied 1 year ago.
from what i've been told at least one name on the loan has to be on the title...
Expert:  Loren replied 1 year ago.

Did you consent to the car being collateral to the loan? You would have to have signed something.

Expert:  Loren replied 1 year ago.

Are you still online with me?

Customer: replied 1 year ago.
orginally, yes- the loan was put in both of our names and then was switched to just his.
Expert:  Loren replied 1 year ago.

Was the car released as collateral? Did you receive a release?

Customer: replied 1 year ago.
release as in the title? if so, yes. I have the title.
Expert:  Loren replied 1 year ago.

Was the bank removed as a lienholder?

Customer: replied 1 year ago.
they are still listed as the lien holder per the DMV but when I spoke to them they were questioning how that was... they told me to look at the date or something on the title, which I've been meaning to just take in to show them, but haven't had a chance. Any idea what they are referring to?
Customer: replied 1 year ago.
the date on the title shows 12/13/14...
Customer: replied 1 year ago.
also, what happens if he files bankruptcy?
Expert:  Loren replied 1 year ago.

If they will release the lien then you have no further risk of repossession. So, ask them for a release.

Expert:  Loren replied 1 year ago.

If he files for bankruptcy then the bank can not repossess your car during the bankruptcy proceeding, but it will not release the car as collateral.

Customer: replied 1 year ago.
sounds easier said then done... I cant imagine the bank willing to do that. So I guess back to my original question... if he stops making payments can the bank legally repo my car if my name is ***** ***** title and registration and his name is ***** ***** one on the loan?
Expert:  Loren replied 1 year ago.

Yes, if you signed off on an agreement to place the car as collateral then it can be repossessed if the loan goes into default.

Expert:  Loren replied 1 year ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not necessarily a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.

Customer: replied 1 year ago.
technically everything was "e-signed"...so my best option is to just let the payments/loan run it's course and if he defaults try to sue him for reimbursement?
Expert:  Loren replied 1 year ago.

Unless you want to keep the car from being repossessed. Then you will need to pay or get him to pay.

Customer: replied 1 year ago.
once the car is paid in full would I still control ownership?
Expert:  Loren replied 1 year ago.

Yes.

Expert:  Loren replied 1 year ago.

Did you have futther questions? Have I answered your question?

Expert:  Loren replied 1 year ago.

If you have no further questions please remember to rate my service so that I am credited by JA for answering your question and also so that I may close the question. Thanks.