Co-signed loan with ex, now ex is AWOL

[KSK1]

Jurisdiction

North Carolina

This is a rare case where I am, in fact, asking for a friend (a co-worker).

My co-worker was dating an individual and co-signed on a car loan. The two broke up 4 years ago and haven't spoken since. My co-worker kept the vehicle and has continued making car payments for the last 4 years but now needs to sell the car. Apparently, the break-up was fairly acrimonious and 4 years later my co-worker's ex will still not speak to him or communicate with him regarding the car. Presumably, once the car loan is paid off, the title will be sent to my co-worker with two names on it--his and the name of his ex.

From what I understand, one cannot sell a car without both individuals on title agreeing to the sale with their signature. Is that correct? Are there any remedies for a situation where a person is AWOL and purposely avoiding contact with a co-signer on a loan or on title? Can he post some public notice or something in the newspaper? Worst case, if my co-worker has to walk away from the loan, does he have any remedies with the credit bureaus to avoid a catastrophic hit? Thank you.

 

[army judge]

This is a rare case where I am, in fact, asking for a friend (a co-worker).

It isn't as rare as one might think around these here parts.

If there are 2 owners listed on the front of a title, the majority of the time, both people must sign as the seller.

If there is an 'or' in between the names, typically only one signature is required.

 

[adjusterjack]

From what I understand, one cannot sell a car without both individuals on title agreeing to the sale with their signature. Is that correct?

Yes. Unless, as Army Judge points out, the word "or" is between the two names on the title.

Are there any remedies for a situation where a person is AWOL and purposely avoiding contact with a co-signer on a loan or on title? Can he post some public notice or something in the newspaper?

That isn't going to work. That kind of notice isn't binding on the DMV unless there is a court order awarding ownership to him. Fortunately, he might not have to go that route. Assuming the title (and the lien release) is sent to him he may be able to get a new title by posting a bond. Show him this:

Official NCDMV: Bonded Vehicle Titles

if my co-worker has to walk away from the loan, does he have any remedies with the credit bureaus to avoid a catastrophic hit?

Nope. He signed his name guaranteeing the loan. If he doesn't pay (and the ex won't) he is stuck with the consequences of trashed credit.

 

[zddoodah]

Presumably, once the car loan is paid off, the title will be sent to my co-worker with two names on it--his and the name of his ex.

Presumably? Is your friend's address the address of record that the lender has? Why doesn't your friend know for certain whether both names or only one name is on title? Note, by the way, that, if your friend's name is on title, then he's not merely a "co-signer."

From what I understand, one cannot sell a car without both individuals on title agreeing to the sale with their signature. Is that correct?

Depends on exactly how the title is held.

Are there any remedies for a situation where a person is AWOL and purposely avoiding contact with a co-signer on a loan or on title?

The bonded title thing mentioned in the prior response may work. Query why your friend didn't seek to address this at the time of the break-up four years ago.

Can he post some public notice or something in the newspaper?

We have no reason to believe he lacks this ability, but I haven't the slightest idea what you're contemplating here, what purpose you think such a notice might have or who you think might see it.

Worst case, if my co-worker has to walk away from the loan, does he have any remedies with the credit bureaus to avoid a catastrophic hit?

Why would he do that? You didn't say exactly when the loan was taken out, but you said they broke up four years ago, so the loan ought to be just about paid off by now. Right? Regardless, the magnitude of the credit hit will be directly proportional to the amount by which the loan balance exceeds the car's fair market value.

 

[flyingron]

I do not believe North Carolina does "or" titles. All owners listed on the title must sign. The only exception is if JTWROS appears and the other owner is dead.