Mount Airy, NC asked in Consumer Law for North Carolina

Q: I’m trying to refinance my car loan and the person that co-signed for me will not sign the release form

Related Topics:
1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
Answered
  • Consumer Law Lawyer
  • KERNERSVILLE, NC
  • Licensed in North Carolina

A: Unfortunately, you cannot compel your co-borrower to cooperate with refinancing the car. I assume their name is also on the title. This means they own half of the car, and are equally liable for the loan payments. You also cannot compel them to sign any paperwork to sell the car if they do not want to. Your only option is to file an action for "partition", which is a long and involved process that is not easy to do without a lawyer and will be quite costly. The end result of a partition is that the car will be sold, the loan paid off, and the excess proceeds divided between you and the coborrower accourding to the findings of the court. Long story short, if you want to keep the car, you will have to keep the current financing. You will also not be able to trade in the car or sell it if the co borrower will not cooperate. You will have to drive it until it dies, take it to a junk yard and let the junkyard deal with the title issues. If it is wrecked, hopefully the insurance ill pay the loan off, but any excess money over the loan payoff will be paid by a check made out jointly to you and your co borrower, and you will not be able to cash the check without dealing with your co borrower. This is the reason why having a cosigned loan is often a huge problem that people do not think about when they urchase something on credit.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.