Find Seized Car Auctions Near You

Know Where To Buy Your Dream Car For A Low Price!

Whether It Is A Mercedes, BMW, Honda, SUVs, Trucks...

Drive Your Dream Car For 90% Below Retail Prices!

Start Looking For Your Dream Car Now!

My mom co-signed on a car loan for me through a financial company 5 yrs ago; she then chose to pay it off and have me make my payments directly to her last year. We had a verbal agreement of what my monthly payments were and that if I didn’t make them the car would in fact, be taken back by her to sell. Soon I lost a major portion of my income and was unable to make full, consistent payments. I sent partial payments that were sometimes late and some months I was unable to make any payment. I kept in open communication via email & phone to let her know what to expect. She would respond neutrally, mostly not addressing it. She recently sent me a certified letter after a fight telling me to pay her what is left owed to her on the car or to return it to her to sell. She also said I would be responsible for the difference (if any) if the car did not sell for what I owed her. We have no signed contract at all; and definitely no verbal agreement saying I would be responsible for the difference if the car was taken.
I relinquished the car to her; there was some small body damage and the check engine light was on. She sold it to her friend for less than what was owed because of the damage; the car did not pass smog and now she wants me to pay for the difference and to fix it to pass smog. I say hell no, that’s her problem now. I live in California and from what I can tell I’m no longer responsible. She wants to take me to small claims court and I feel confident she has no case because we did not have any agreement that I would pay the difference if she sold the car. She’s under the impression that she has the same rights as a financial company because she is lien holder on the title. Is this true? Is there an unspoken agreement that she is exactly like a real company? I figure even companies should have to tell you all the rules up front and not spring it on you later.
I am not trying to "escape" responsibility, I simply do not believe I am legally responsible. I never chose NOT to pay her, I couldn’t/can’t and that’s why I gave it back. Per our verbal agreement that was the consequence for not being able to make the payments. What stops her from selling it to her friend at a discount and coming to me for the rest? She wants to go on Judge Judy because they will pay for the judgment if she wins. P.S. my mom is not an honest person & she used the car to control me for the last year.
wow, very little of these responses are just answers. I had to sift through a bunch of judgment and personal opinion that include attacking words.

5 Comments »

1. 

   Just as with a bank if it were the lien holder, pay your mother.

   Comment by JohnnyK — June 7, 2011 @ 11:26 am

2. 

   Imagine that. A mother who actually expects her offspring to live up to the letter of the law. You owe her the money. You are lucky because you are learning responsibility and that there are consequences for one’s acts. You should have learned that at a younger age but better late than never.

   Comment by DelK — June 7, 2011 @ 11:26 am

3. 

   Her "impression" is correct. If your mother is legal lien holder (not just a "verbal" or "unofficial" lien holder), she has every right that any other lender has to pursue recovery. The fact that she’s your mother is legally irrelevant.

   Comment by Caveat Emptor — June 7, 2011 @ 11:26 am

4. 

   Actually, the only dishonest person in this story is YOU.

   As a debtor, you have the legal obligation to maintain the car, and if you dont, and your mother repossesses and has to sell at a loss because of YOUR negligence ( disrepair and physical unfixed damage), YOU are responsible for the difference in what the car was supposedly "worth" ( NADA blue book or some other standard) and what she had to sell it for because of YOUR negligence

   Sorry kid… no matter how many times you ask this question expecting to hear a different answer, it is YOU who is at fault here. Sack up and pay the debt..

   Comment by Smilin'_Bob_The_Enzyte®_Guy — June 7, 2011 @ 11:26 am

5. 

   I simply do not believe I am legally responsible.

   Believe whatever you want, you are responsible for paying regardless of your beliefs. But if you keep posting the same question in enough categories, perhaps you will finally find someone who will agree with you and you can then feel vindicated.

   Again, she had the right to take the car, and add any expenses she had in doing so to the balance, and whatever is left after the cars sells at auction is yours to pay.

   Comment by oklatom — June 7, 2011 @ 11:26 am

RSS feed for comments on this post. TrackBack URL

Leave a comment

Name (required)

Mail (will not be published) (required)

Website