Posted on: 09th Feb, 2010 06:41 pm
I took out a car loan for my sister 2years ago and my sister could not make the payments and so we did a voluntary repossession. There is now a deficiency balance due on the loan for $32,000. The collection company is threatening to put a lien on my home.Can I quit claim or transfer the property to my husband or mother to avoid them putting a lien or judgement on my home? Both the mortgage and title is in my name and husbands name.
Hi Guest,
As a co-signer, you are as much responsible for the mortgage as your sister. So, the collection company can come after you for the deficiency from the car loan. They can get a judgment against you and put lien on your home. A quitclaim at this time might not work. If they can prove that you quitclaimed the property to avoid paying off the deficiency, the court can reverse the transfer. Have you tried to settle the debt with the collection agency or set up a repayment plan with them?
As a co-signer, you are as much responsible for the mortgage as your sister. So, the collection company can come after you for the deficiency from the car loan. They can get a judgment against you and put lien on your home. A quitclaim at this time might not work. If they can prove that you quitclaimed the property to avoid paying off the deficiency, the court can reverse the transfer. Have you tried to settle the debt with the collection agency or set up a repayment plan with them?