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Albert Marmero
Albert Marmero,
Category: Legal
Satisfied Customers: 197
Experience:  Partner at Long, Marmero, & Associates, LLP
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A Couple bought a car together less than a year ago. With

Customer Question

A Couple bought a car together less than a year ago. With both credits, one being better than the other but both not great. The partner with the better credit does not have a drivers license but was paying half the payment anyway until 2 months ago. They have recently separated and the non drivers license, better credit partner wants out of the credit and ownership. What can she do or what should they do.
Submitted: 1 year ago.
Category: Legal
Expert:  Albert Marmero replied 1 year ago.
In a situation like this there are generally only two options. The first option is to consult the lender and request to have the one party removed from the loan. This type of request is generally not granted and if it is, it may require more equity. The second option is to attempt to refinance the loan with a different lender, using only one of the parties. This is the most likely chance to remove a party, but with average credit, it won't be simple. Similar to the second option, the party that wants to remain responsible can seek a loan to purchase the vehicle from the other party.
Customer: replied 1 year ago.
Thank you for the info. That leads me to a second question. For the party who wants to stay since the payments were being made mostly untime but a few times a little late since August would that have boosted the credit enough to refinance on his own? And ,or get a smaller, cheaper car?
Expert:  Albert Marmero replied 1 year ago.
Well, you say a few payments were late. If they were more then thirty days late, then they will be reported to the credit agencies and hurt the person's credit score. If they were less than thirty days late, then this account will show as in good standing and will help the person's credit. How much of a help will depend on the amount of other credit accounts this person has.
Customer: replied 1 year ago.
You also said it may require more equity. On whose part?
Expert:  Albert Marmero replied 1 year ago.
Well sometimes a current lender may require more security if they are letting one of the parties off of the hook, so they may ask for a payment from either/both parties.
Customer: replied 1 year ago.
Ok. Thanks. That's a start foe me.
Expert:  Albert Marmero replied 1 year ago.
Great. If you found me to be helpful, please provide a rating. And feel free to ask me further questions. Enjoy your day!