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  • Cosigners

    We have a son who has gotten into drugs, cannot hold a job, and whom we
    co-signed a vehicle for 1.5 years ago. Recently we repossessed the vehicle,
    because he was not making payments on it, or the insurance.

    Are there any legal ways to remove him from the title so the vehicle can be
    sold. We are listed as the "Owner" on the title, with him as the "co-owner".

    Obviously, he refuses to sign over the vehicle, or I would not be asking
    this question.

    We are in Texas by the way.

    Thanks



  • #2
    Cosigners

    "Houtex" <[email protected]> blurted out
    We have a son who has gotten into drugs, cannot hold a job, and whom we co-signed a vehicle for 1.5 years ago. Recently we repossessed the vehicle, because he was not making payments on it, or the insurance. Are there any legal ways to remove him from the title so the vehicle can be sold. We are listed as the "Owner" on the title, with him as the "co-owner". Obviously, he refuses to sign over the vehicle, or I would not be asking this question. We are in Texas by the way.
    Under common law a guarantor basically has the right to do what you
    did. What I'd do is call the DMV to see if they know how to handle
    it.

    Stu

    Comment


    • #3
      Cosigners

      On 07 Aug 2003, "Houtex" <[email protected]> wrote:
      [ We reside in Texas where about 1.5 years ago we co-signed for our son in his purchase of a vehicle for which we are listed as "Owner" and he as "co-owner". Because he has gotten into drugs, cannot hold a job, and was not making payments or maintining required insurance, we repossessed the vechicle. To enable use to sell it, are there any legal ways to remove him from the title? ]
      Your implication that you chose when you guaranteed his loan not also
      to have obtained from your son a power-of-attorney or like agreement
      by which he authorized you to do what you now want if you believed for
      good reason that he was in default in making payments and maintaining
      insurance as/when he agreed makes even more important than it
      otherwise is for you (carefully) to (re?)read the underlying purchase
      and, above all, loan/financing agreements for what rights/remedies it
      provides.

      In so doing (reading carefully) pay special attention to whether you
      might also want to consider negotiating with the original seller or
      with the lender for one of them to invoke its/their (by your son:
      agreed) remedies in case of your son's defaultfor them to take back
      the car. Granted, so doing might seem (at least at first blush)
      presumptively undesirable, if there is a reason to believe that an
      arms-length sale to a third-party (if implementable) would generate
      comparatively more funds; yet, as it is you who notes that your son's
      continued status as uncooperative owner, if continued, will impose on
      you costs/expenses of pursuing alternatives (e.g., your
      promptly/well-focusedly suing him) aggravated by depreciation-related
      considerations.

      Depending what the very-same agreements to which you refer but the
      terms of which you don't report in your posting/query provide, it
      nonetheless (and: obviously) is open to you to sue him, perhaps for
      equitable relief (e.g., "declaring" you as sole "owner") or at least
      for damages (e.g., under "contribution" principles) to which he has
      exposed you by reason of your default -- a process which might not
      just be emotionally salutary but might also result in his yielding
      vountarily (or defaulting).

      In other words (and is almost always so with respect to newsgroup
      queries like yours), the real-world results will turn on any number of
      facts you haven't specified in your posting/query.

      Comment


      • #4
        Cosigners

        "Houtex" <[email protected]> wrote in message
        news:<[email protected]>. ..
        We have a son who has gotten into drugs, cannot hold a job, and whom we co-signed a vehicle for 1.5 years ago. Recently we repossessed the vehicle, because he was not making payments on it, or the insurance. Are there any legal ways to remove him from the title so the vehicle can be sold. We are listed as the "Owner" on the title, with him as the "co-owner". Obviously, he refuses to sign over the vehicle, or I would not be asking this question. We are in Texas by the way. Thanks
        Might take a court order. AFAIK, Texas doesn't have an "either/or"
        registration such as California's (where, if the title reads "John Doe
        or Richard Roe", either Doe or Roe can sell without the other's
        consent or signature). So you've got to remove him as owner, and if
        he's unsusceptible to lesser forms of persuasion, a court order
        declaring you the owner might be the way to go.

        You have some grounds for this. If I understand you right, you have
        title and the incidents of ownership: you hold (and use, I suppose)
        the car; you maintain it and insure it and make payments. He has
        nothing but his name on the title, sometimes called "naked title".
        That may be enough to allow the court to award title to you.

        Don't try this without a lawyer; there will be procedural requirements
        that you will want to get right the first time. And a Texas lawyer
        (there's a good one, Zen Cohen, who posts here regularly) will know
        what is the best way to get the job done.

        --
        Not a lawyer,

        Chris Green

        Comment


        • #5
          Cosigners

          (Mailed and posted)

          Christopher Green wrote:
          ... So you've got to remove him as owner, and if he's unsusceptible to lesser forms of persuasion, a court order declaring you the owner might be the way to go.
          Holding a gun to his head while he signs over the title
          has been known to be effective, but is not recommended,
          even in Texas. :-)

          Comment


          • #6
            Cosigners


            "Richard" <[email protected]> wrote in message
            news:[email protected]
            Houtex wrote:>>
            We have a son who has gotten into drugs, cannot hold a job, and whom we co-signed a vehicle for 1.5 years ago. Recently we repossessed the vehicle, because he was not making payments on it, or the insurance. Are there any legal ways to remove him from the title so the vehicle
            can
            be sold. We are listed as the "Owner" on the title, with him as the "co-owner".
            Obviously, he refuses to sign over the vehicle, or I would not be
            asking
            this question.
            We are in Texas by the way. Thanks
            Ask the texas department of motor vehicles.
            Hold the phone. The parent stated that he "co-signed" for the son. Then
            it later turns out that the parent was a "co-owner," and thus most likely a
            "co-buyer." There is a big difference pursuant to the Fair Credit Practices
            Act. Many car dealers have people sign as a co-buyer and call them a
            co-signor but don't provide them with the required co-signer disclosure
            form. It that was the case, then the car finance company or bank might not
            have any recourse against the parents.



            Comment

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