Quote:
Originally Posted by kunkstyle
someone can correct me if I'm wrong, but if the car is collateral for the original loan, and your gf "bought" the car with a lien on it, your gf will be held responsible for the loan if the sister ever defaults.
I realize that this situation is a bit different, but I've always done lien checks on used vehicles for that reason.
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All you need to do is look at who signed the promissory note note. Whoever signed the note is 100% responsible. You can't sue people who aren't on the promissory note. In DeanOMac's case, his girlfriend is still responsible for the loan, even though she sold the car to DeanOMac's sister. I'm not sure the sale is valid if DeanOMac's sister didn't disclose the lien information on the bill of sale.
That being said, depending on the dollar amounts, the financial institution might not do anything provided they are getting paid. Sometimes the cost of realizing on the security doesn't make it worth it.
If there is $3,000 left owing to satisfy the lien and the person sales it to you for $4,000 you simply do a draft made payable to the seller and the fi jointly. I would look to verify the lien will be satisfied, however.