Bank trying to hold title to paid off loan

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I was divorced in March 2008. My ex and I shared 2 loans. The first was a vehicle, which he was assigned in the divorce and the second was a horse trailer, which I was assigned. He has defaulted on the vehicle loan, while I paid off the horse trailer loan. The vehicle has been repossessed and while the loans were seperate the bank has refused to send me the title to the horse trailer. They state that until the other balance is taken care of they will not release the title. Personally, I think they are bluffing. How can a bank hold that title as collateral for a loan to which it was never connected? I didn't sign anything saying the horse trailer was collateral. The vehicle itself was collateral for that loan. I have been very cooperative with this bank in locating my ex, returning calls and giving them any info they needed about the vehicle (even when they were in the process of repossessing). Has this sort of incident happened before? I've called them and basically called their bluff and they are squirming a bit. Just wondering if this is a common practice with banks now?
Not sure about Banks However in the "Credit Union World" they have what is called Cross Collateralization- this means if one loan is bad they are all bad.

You need to locate your loan docs on the trailer and read all of the fine print, if it has this clause in there -- then yes they can hold the title and a matter a fact they could repo the horse trailer if they wanted too.

I have heard that banks are taking this stand point as well with the Cross Collateralization Clause.

The issue with your husband has to pay this and you pay that -- If you are both on the dotted line on the contract the agreement you have in your divorce is civil and the loan contract supersedes that Divorce Decree
He was suppose to have gotten the vehicle out of my name within 6 months of the divorce, but by then it was already going bad. No one would refinance it for him. If I had known it would come to this I would have paid off my loan earlier and said to hell with him. He had already tried to ruin my credit by opening credit card accounts without my knowledge (I'm fighting those, too) so, it really wouldn't have made a big difference. After calling the bank (and fibbing a bit about contacting an attorney) the account specialist has decided the best thing (and cheapest) to do is to let the title go. After the vehicle was repo'd and sold all that was left for a balance was $1875. When did credit unions start doing cross collateralization?
ok, i've been doing a bit of reading and from what i understand it cannot be held as cross collateral unless it is designed as such in the original papers... it is not.
You would have had to sign it in any one of these loans @ the bank -- The clause has been around for a long time I am sure long before I was around.

If it is in the contract, then your bound- if not then I would fight with them-- they may just be trying to hold out as long as they can before they have to give it up.

I would contact the Collection Manager at the bank and tell them you want to see where they have right to hold this title over the other item being in default
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