Legal Question in Credit and Debt Law in Maryland
I have fallen behind on my car payments (3 months) and I have been speaking with three different representatives from my financing company and someone from the actual dealership, I believe (financed directly through the dealer, no money down, sign and drive). A bit of background history; my grandmother co-signed for my car, her name is first on the title, and I am second. I drive the car, I pay for the maintenance and I pay the note, I pay the insurance, all she did was sign for me. As I stated, I fell on hard times and have been unable to pay my car note in almost 90 days. I was contact by three different representatives; two of which are working together and told me they were hired by the financial company to arrange payment ASAP or to repossesses my vehicle. It took a lot for my grandmother to sign for me and I have put a lot of money into my car, I do not want to lose my car (I couldn�t imagine anyone that would). Well the amount I have to produce is nearly $2000.00 which I am able to come with but I need at least another paycheck (I get paid this week so another 2weeks). One representative that I spoke with told me that I could put the car in a secured storage facility of theirs and I would have fifteen days to pay the balance or they'll keep the car and it would be considered a voluntary repossession. I told a friend of mine about that arrangement and not only did he say that was a trick they use but he also brought up the point that without my car, I'm unable to get to and from work. If I don't work how will I ever get caught up? The other representative told me that since my grandmother co-signed for me and she has a house, if I didn't pay my past due balance by whenever they say, they would put the loan amount onto her home. My grandmother's house has been paid off for decades, can they do that? I�ve been told that I was going to get an extension but the next day or two after having that conversation the other rep leaves me a message saying she needs to make her decision soon. I am so confused. Basically what I am asking is if I continue to keep my car and pay them the late fees and past balance, will they be able to put my car loan onto my grandmother�s house and/or demand that I pay the remainder of my balance in full? I forgot the term the woman used, it was "con-something" I think. Also, once I catch up on my car note, how hard will it be for me to refinance in order to get the car out of my grandmother's name and is that a good idea to try to do now?
Clarity greatly needed.
MTF
1 Answer from Attorneys
Hi and thanks for your post.
Anyone who borrows money will need to pay it back under the terms of the loan/note. If the borrower doesn't keep up their part of the bargain (say by missing an installment payment), the lender usually has a right to repossess any collateral. A lender MIGHT work with a delinquent borrower but one needs to read the terms of whatever loan paperwork the borrower signed to see what rights the borrower has to pay the back balance and keep the car. In legal terms this would be the right to "cure" the default.
Yes, a creditor can generally demand that the balance be paid in full after default / repossession and yes, they can usually attach any assets owned by a co-borrower (such as Grandma) as soon as they have a judgment.
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