REPLACING COSIGNER, REFINANCE

[bigbang91]

Here is my situation: Back in may 2012, my fiance and my sister cosign a car for me(cause I had absolutely no credit then). Now that's I have establish my credit history, i wonder if I can remove my sister from the loan and add my name to the loan as cosigner with my wife? The car is a Cadillac CTS 2012 and loaner is Suntrust bank in tampa bay,FL. Or is there any way my wife+my sis can transfer the loan into my name, thats would be great. Appreciate you guys input,tks in advance!

[Anonymous]

Well the only way to change the responsibility on the loan is going to be a refinance. Or if your name was not on the original loan then it would be a used car purchase from whoever is on the loan. Either way you are going to have to find out if there is enough value in the vehicle to cover the loan amount at this time. I am assuming from the dates and the model year it was a new car when it was purchased. There is a significant depreciation in value when the car is driven off the lot, and your loan payments to date may not have reduced the loan enough to meet that depreciation. If so then you will need to bring some cash to the table to reduce the outstanding loan value or wait a while until it is not underwater.

Your best bet is going to be to talk to your primary bank or credit union and see what amount of loan they would be willing to make on this car. After you have figured out what the loan value is then you can tell them what your current credit scores are. They should be able to give you an idea of whether the loan could be approved or not before you make a formal application.

[bigbang91]

The bank where i borrowed from doesnt have a branch in Texas. I gave my sister 10k to down at the time, so as of now the loan amount is only ~28k, and market value is around 37k. Nevertheless, i will put down another 10k if got approved, do you think credit union will let me do that, take my sister name out and add me in?Thanks

[Anonymous]

As long as the values are as you stated and your income will support the payments then you should have a chance. You do not need to go through the bank that has the loan currently. Your credit union would be a better bet since you already have a relationship with them. You shouldn't need any further down payment.

[Dustink]

If you have that kind of money, a credit union should be able to work with you.