Auto loan transfer

[Anonymous]

I purchased a vehicle 2 years ago through financing. I moved to the city and my brother took the car and has been making the monthly payments on it. He got a preapproval from his credit union for the amount I currently owe on the car. Is there a way for his bank to buy the car from my bank so the auto loan is in his name instead of mine. Or is the a better way for him to assume full ownership and financial responsibility for the car? I need to get the car off my credit to reduce my DTI for a mortgage.

[SamsungHDTV]

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@Anonymous wrote:
I purchased a vehicle 2 years ago through financing. I moved to the city and my brother took the car and has been making the monthly payments on it. He got a preapproval from his credit union for the amount I currently owe on the car. Is there a way for his bank to buy the car from my bank so the auto loan is in his name instead of mine. Or is the a better way for him to assume full ownership and financial responsibility for the car? I need to get the car off my credit to reduce my DTI for a mortgage.

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What the bank will see is a 'private party' purchase from your brother to you. Since your bank has a lien on the car, the check should be made out to BANK and Akos123. You should then take that check to your bank and simply payoff the loan. His credit union will simultaneously fund his loan. If the check is made out to just the BANK or just you, you can payoff the loan just the same.

[SamsungHDTV]

Actually, his credit union will likely send the check directly to your bank to payoff the loan. Keep in mind that the process can take awhile, so if you have a payment due, be sure to make the payment. Once his credit union check arrives, your bank will issue you a refund for that payment amount.

[Anonymous]

Thank you all for the responses!  I told him to get the ball rolling on his part.