My monster, I mean mother-in-law, co-signed on a car loan for me 1 1/2 years ago. I have never been late on a payment, but now she wants to take her name off or take the car, because she is mad that she doesn't see her son anymore (and that's because she's crazy). My husband and I are very upset and don't know what to do?! :( :confused:

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Originally Posted by hopelessly in d

My monster, I mean mother-in-law, co-signed on a car loan for me 1 1/2 years ago. I have never been late on a payment, but now she wants to take her name off or take the car, because she is mad that she doesn't see her son anymore (and that's because she's crazy). My husband and I are very upset and don't know what to do??!!:( :confused:

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The legal advice is she cannot force you to take her name off the note. She can ask and threaten but she cannot legally force the issue.

Was she a monster and crazy when you needed a co-signer or did that come later?

She can do neither. She does not own the car and as long as you have not defaulted on the loan she has no legal recourse to take the car.

Taking her name off the loan is not up to you. Only the lender can do that and they are not likely to because it makes their ability to collect harder. You could try and refinance the loan without her.

But I would say to her, I'm sorry you are upset, but there is nothing we can do, the bank won't remove your name. And, since you don't own the car, trying to take it would be stealing.

Thank you so much for your advice. No, she wasn't a monster at that time. She freaked out a couple weeks before our wedding and has really never stopped. She has some major issues.

As long as her name is not on the title or registration, you have nothing to worry about.

The lender will not take her off the loan, period.

You received very good info, she is basically making threats to try and upset you.

What if her name is on the title, too? We financed it through Toyota.

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Originally Posted by progunr

As long as her name is not on the title or registration, you have nothing to worry about.

The lender will not take her off the loan, period.

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Her name is o the title, also, but it is named as either/or. So do I have to worry about that?

If her name is on the title, especially as an either or, then you have troubles. This means that either one of you can act as owner of the car. Therfore she can take the car and it wouldn't be stealing. She can even sell the car legally. I would look into seeing if you can change the title without her approval.

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Originally Posted by hopelessly in d

Her name is o the title, also, but it is named as either/or. So do I have to worry about that?

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That means either you OR she can make the decision about selling the car, driving the car, registering the car - you are joint owners.

Think of a joint bank account - both our names are on the account. I can take out all the money or you can take out all the money. It's joint money. That's how your title is held.