topic Re: Joint responsibility to individual? in Auto Loans

Joint responsibility to individual?

MM21 — Tue, 10 Apr 2018 02:45:01 GMT

Hello everyone, I am wondering if it is possible to switch an auto loan that was financed as a joint responsibility loan originally to an Individual?

Always bought cars with cash growing up and had no credit history at all so needed to have my father co-sign when I applied last year.

Since then I have made all payments on time and opened up a secured card from wellsfargo and more recently a QS1 and BCE to build my credit file/history etc...

I’m guessing I would have to refinance and at that point it may be possible?

Does it look better on your report if it shows as individual for prospective lenders/cards etc?

Re: Joint responsibility to individual?

Anonymous — Wed, 11 Apr 2018 19:14:33 GMT

Yes you would have to refinance to get the loan just in your name. In the eye's of a lender it really won't make much of a difference in regards to underwriting.

Re: Joint responsibility to individual?

MM21 — Wed, 11 Apr 2018 21:05:47 GMT

Thanks for the clarification!

Re: Joint responsibility to individual?

RobertEG — Wed, 11 Apr 2018 23:11:17 GMT

A creditor is not going to permit you to remove one of the joint parties from the loan.

They now have legal ability to pursue full collection from either party, and wont then limit themselves to only one responsible party.

You would, as others have said, need to terminate that loan by refinancing in the name of the one party.

Re: Joint responsibility to individual?

MM21 — Thu, 12 Apr 2018 00:28:29 GMT

Right, I figured that would be the case, thanks for the response. I would definitely qualify for a lower rate at this point as well so refinancing would probably help me reduce my 7% APR, im a little upside down on the loan atm so ill have to pay off a chunk to get refinanced.

Would 125% of the value of the car be standard or common for a refinance?

Re: Joint responsibility to individual?

Anonymous — Thu, 12 Apr 2018 13:59:00 GMT

It really depends on the bank that is refinancing, some will use NADA clean trade to refinance, some will use NADA clean retail. If you could get those figures as well as an estimated payoff you will know your LTV.