I would be very careful with allowing someone to use the vehicle.
Understanding your Sister is an attorney or soon to be, writing a contract to "sublet" the vehicle is much different with this type of collateral.
This could be a setup for a major disaster down the road.
How would the vehicle appear registered to the State?
Usually States' DMVs will not allow a title change while a lien is in place.
Does the State the vehicle is registered in require Insurance coverage to be provided by the registered owner in accordance to the law?
How will the current lender feel about their collateral in the posession of someone who is not legally obligated to them in any way?
Your Sister has legal obligations to the current lender to insure and register the collateral in the manner the contact states so long as their lien is on the title.
Honestly, this car needs to be sold.
There are numerous ways to get this done. AutoTrader, Cars.com Craigslist, Carmax... the supermarket parking lot.
We checked into carmax and there isn't one close to us by hours. We also checked into their equivlant in our area. The two choices are auction like businesses. Neither would buy the truck from her. They are only willing to auction it and that could leave her owing very little to thousands depending on the auction and with it being close to the holidays the guy there said that trucks are selling as high right now.
As for the guy who wants to take over payments.... no we don't persay trust him. We don't know him. He contacted us after seeing the for sale sign on the truck. Our options are very limited with each new discovery. We do have a contract made, but she and I are both on the fence about it. The contract does state that he would have to carry 50/100/50 full coverage insurance. Pay the payment and give her and extra 100 per month to put into an account for car repairs incase something was to happen after the loan is paid off... she will return the money to him. We have had extensive contact with him and he is in agreement with this. Ran his credit through the law professor's firm. They do that sort of thing. And done background checks in the local court systems to see if there is anything pending. He comes back clean. He said he lost his job a few years back and is just getting back on his feet. Trucks were out of his price range right now to gert financing, so he thought he ask her. Her professor helped draw up a contract and has been advising her also from their professional stand point. I am a doctor so these kinds of issues I guess wouldn't haunt me like the will her. We found out he can get non owners full coverage insurance so we explained that to him. We also found out that he can simply ad the truck to his exsisting car policy. His wife drives that to work and they can't share because the hours don't co-exsist. He'd been hitchening a cab but where he lives... there is no bus lines and the cab is cost 50 bucks a day.
She has spoke to the bank who has said that they won't come after her for any difference. They are suppose to put that in writing and send it to her. Since the loan was "in house" through the Ford Dealership... she thought she would call and speak with them. They didn't say if this would be reported as a repo as they would have to check and get back to her but she did ask. This is apparently a program they just started. We are waiting to hear back. In our state the things fall off after 5 years. So, she would be in school for another 2.5 and then would just have to point out to people what had happened if anyone asks. The fact she had two loans at the same time within two months of each other, according to other attorneys, will help show that her story is true. However if the dealership simply takes it back and doesn't add anything against her credit... she is golden and that is what we will go with when we know for sure.
In general this was just bad all around. This has affected her relationship with her in-laws and her husband. She feels like they all lied to her when they told her he was a great guy who feel on hard times only to find out he had done this to all of them. She's been staying at my house cause she said if her husband would lie about this to her then what else would he lie about? I know my husband is peeved and he had acutally gotten the paperwork to take a small loan from his 401K so we wouldn't have to raid the savings and they payments would be stretched over 5 years and no one is financing anything. I am beyond words. My husband has been more supportive than hers and hers made the mess. My parents financed a car for each of us when we started college and neither one of us would have dreamed to do this to them. I think that is why she did this without thinking much about it. I know she mentioned to me before she did.... but.... There were a few payments throughout the loan my parents took for me while I was in med school that I asked for help on, but I by no means let it affect them. I always knew I would be short and would call my parents and tell them I was having trouble on the next payment and asked if they could help. They always did and I made sure to say thank you somehow by taking mom out for dinner or getting cheap theater tickets for them. They always knew we wouldn't screw them. Her husband has been trying to call her but she told him she doesn't want to talk to him and won't be spending the holidays with him or his family. She has four more weeks of school this semester and she says she is just ignoring them until then.
Thanks everyone for the advice so far. It was very helpful even if we couldn't use it
@Anonymous wrote:We checked into carmax and there isn't one close to us by hours. We also checked into their equivlant in our area. The two choices are auction like businesses. Neither would buy the truck from her. They are only willing to auction it and that could leave her owing very little to thousands depending on the auction and with it being close to the holidays the guy there said that trucks are selling as high right now.
As for the guy who wants to take over payments.... no we don't persay trust him. We don't know him. He contacted us after seeing the for sale sign on the truck. Our options are very limited with each new discovery. We do have a contract made, but she and I are both on the fence about it. The contract does state that he would have to carry 50/100/50 full coverage insurance. Pay the payment and give her and extra 100 per month to put into an account for car repairs incase something was to happen after the loan is paid off... she will return the money to him. We have had extensive contact with him and he is in agreement with this. Ran his credit through the law professor's firm. They do that sort of thing. And done background checks in the local court systems to see if there is anything pending. He comes back clean. He said he lost his job a few years back and is just getting back on his feet. Trucks were out of his price range right now to gert financing, so he thought he ask her. Her professor helped draw up a contract and has been advising her also from their professional stand point. I am a doctor so these kinds of issues I guess wouldn't haunt me like the will her. We found out he can get non owners full coverage insurance so we explained that to him. We also found out that he can simply ad the truck to his exsisting car policy. His wife drives that to work and they can't share because the hours don't co-exsist. He'd been hitchening a cab but where he lives... there is no bus lines and the cab is cost 50 bucks a day.
She has spoke to the bank who has said that they won't come after her for any difference. They are suppose to put that in writing and send it to her. Since the loan was "in house" through the Ford Dealership... she thought she would call and speak with them. They didn't say if this would be reported as a repo as they would have to check and get back to her but she did ask. This is apparently a program they just started. We are waiting to hear back. In our state the things fall off after 5 years. So, she would be in school for another 2.5 and then would just have to point out to people what had happened if anyone asks. The fact she had two loans at the same time within two months of each other, according to other attorneys, will help show that her story is true. However if the dealership simply takes it back and doesn't add anything against her credit... she is golden and that is what we will go with when we know for sure.
In general this was just bad all around. This has affected her relationship with her in-laws and her husband. She feels like they all lied to her when they told her he was a great guy who feel on hard times only to find out he had done this to all of them. She's been staying at my house cause she said if her husband would lie about this to her then what else would he lie about? I know my husband is peeved and he had acutally gotten the paperwork to take a small loan from his 401K so we wouldn't have to raid the savings and they payments would be stretched over 5 years and no one is financing anything. I am beyond words. My husband has been more supportive than hers and hers made the mess. My parents financed a car for each of us when we started college and neither one of us would have dreamed to do this to them. I think that is why she did this without thinking much about it. I know she mentioned to me before she did.... but.... There were a few payments throughout the loan my parents took for me while I was in med school that I asked for help on, but I by no means let it affect them. I always knew I would be short and would call my parents and tell them I was having trouble on the next payment and asked if they could help. They always did and I made sure to say thank you somehow by taking mom out for dinner or getting cheap theater tickets for them. They always knew we wouldn't screw them. Her husband has been trying to call her but she told him she doesn't want to talk to him and won't be spending the holidays with him or his family. She has four more weeks of school this semester and she says she is just ignoring them until then.
Thanks everyone for the advice so far. It was very helpful even if we couldn't use it
Not sure if u can trust someone u don't know.. I believe though no one is out to burn someone.. If do.. Does ur sister own a house?? If so, If I were her I'll buy the insurance myself and add it to the bill and have the person pay a security deposit and 2 months of payment and insurance in advance if he say he can't do it I would skip it