Almost exactly one year ago I purchased a car from a friend. I live on Maui, and my friend was leaving the island to move to Colorado. I wrote out a check for the total amount ($4500) and he gave me the keys, but no title. He told me the title was held by the bank and as soon as he paid off the loan, with the $4500 he would mail me the title. We never wrote up anything legal to sign, but I do have a friend who witnessed the transaction.
Since then, I have made an effort to call him at least once a month. He has not been good about returning my calls. I do have a few emails from him where he told me that he spent the money that I gave him on moving expenses and not paying of his auto loan. I have now registered the car again in his name and have been fully maintaining including any oil changes or work needed.
What my question is, is what are my legal rights? Is there any way to get the title from him? Is there a way for the bank to release the title by taking out a second loan to free the title? I myself am getting ready to leave the island, and now stuck without the title for this vehicle and unable to ship it or sell it. what can I do?

Zipper

If you successfully re-registered in his name (why?) it would suggest that whatever bank was involved in this is not actively looking to repossess the vehicle.
If it's now again in his name, why not effect a transfer into your own name?
At least that would give you papers.

Frankly it seems this scumbag who you thought was your friend has dumped on you and skipped owing money (probably not only to the bank). Perhaps a word with a lawyer (talk in theoreticals) IF your friend did this what would your legal situation be..

Sorry I'm not optimistic on this one, but perhaps the lawyer will have a bright idea.

excon

Hello holson:

You shouldn't have been driving it either, cause it's not insured in your name. Registered in his name is fine, because he still owns the car. Insured in his name isn't, because he's not driving it - you are. Did you insure it? In his name??? That's insurance fraud. If you drove it without insurance, that's not legal either. Loaned in his name too, isn't ok, because the finance company thinks he still possesses it, so that if he misses a payment, they can re-possess it. That's bank fraud. He's guilty of it for sure, and you might get dragged down too, depending on what you did with the registration.

You're in a mess, holson. You're going to have to sue him, and you're probably going to have to do it in a Hawaiian court. IF you find him, and IF you get him into court, he could simply say that the car is his, and he loaned it to you. You can’t prove otherwise. I know, I know, you’ve got this witness…. Even if you brought your witness, you have nothing in writing and he can show the court that he’s been making the payment.

Let’s say you win. Now you're going to have to collect. The court doesn’t help with that, so good luck………….You can't even junk it, because a junk yard is going to want the title. At least, if you leave it on the streets, the tickets will build up in HIS name.

Sorry, dude. I got nothing but bad news….

excon

Fr_Chuck

yep, most likely he took your money and never paid the bank, So the bank will just find it and repo it after a time.

You will not be able to get new tags since it is not in your name,

And if you paid the bank, they would merely send him the title, not you.

So you now have to sue him for your money back

RichardBondMan

Things to remember: 1) NEVER assume someone is going to do the right thing (you assumed he would take your money and pay off the loan). He might be feeling guilty and is still paying the monthly notes, that's why the bank has not reposssed the veh or they simply cannot locate it) 2) ALWAYS when purchasing an automobile, get a proper Bill of Sale, then go with him to his bank where the veh is financed along with your purchase price ($4,500 in this case), in cash or bank check, then hand him the money, then watch him pay off the loan, then the bank will hand him a copy of his bank loan marked "Paid in full" and send the original title to the State of Hawaii and ask them to remove them as lienholder, the bank will then send you the original title that is now free and clear of the lien, please note I am not exactly sure of the process but essentially you want to make sure the lien is satisfied and you want to make sure you get a proper Bill of Sale that you can take to the Hawaii DMV and transfer the registration to your name, otherwise you have a vehicle that belongs to someone else and cannot insurance and cannot obtain a license plate in your name. I write bonds and have written many where the seller promises the title or a Bill of Sale, then disappears leaving the buyer with a vehicle he cannot title or insure. I only write the bond if I am satisfied no one will appear and claim they have a lien on the vehicle or they own it. Even then, should that occur, I will hold the person I am bonding reponsible for any losses on the bond my surety company will SUREly have to pay.