I need some legal advice

[crazyhorse]

My nephew co-signed for his brother-in-law to buy a new Harley motor cycle.

The loan is through Harley Davidson.

My nephew had to make the last 2 payments.
He wants to know if he can --

1-Take legal possession of the bike.
or
2- Remove his name from the loan.

In short , he does not want the bike but wants the bike if he is having to pay for it.

What is his options?

Thanks.

[sargentrs]

Unfortunately, I don't think he has many legal options short of hiring a lawyer and suing the brother-in-law in small claims court. The only way to get his name off the loan is for the brother-in-law to refinance it in only his name. Since he can't pay the note now, and it required a co-signer originally, his credit probably won't allow that now. I'm co-buyer on my wife's and my stepson's vehicles and it really affects my ability to get credit, making by debt-to-income ratio sky high although I don't make those payments, and other financier's don't make provisions for that. You're on the loan, you're responsible for it, period. Your nephew could buy it from the brother-in-law and refinance it in only his name since, obviously, his credit stood for the loan in the first place. As for taking possession, short of kicking his a-- and taking it, that will require proof of payment, copies of the original loan documents, and an affidavit from the brother-in-law passing ownership of the bike over to your nephew. Even that won't negate the fact that he's primary and your nephew is CO-owner, just gives your nephew something legal in case a situation over possession arises in the future. The original loan documents are legal and binding and can only be overridden by new legal documents. If the brother-in-law will sign a statement, notarized, passing ownership over to your nephew and provide him with a notarized bill of sale, that would probably suffice for passing legal possession over to your nephew however, he still won't have the registration in his name because the title is in the brother-in-law's name with HD as the Lien Holder. Actually, I doubt you're nephew's name is anywhere on the title although I've never actually seen a title for this type of situation to know for sure. Regardless, even if you do all that stuff, the brother-in-law will still be the one to maintain the registration. I'm no lawyer and no expert but I've had no luck in my life in skirting around legal ownership of things. Get a lawyer.

[67mann]

http://www.bankrate.com/brm/news/drdon/20050819a1.asp

knocking some sense into the Brother in law would be a good start

[chad67]

I would also check into 2 things, is the brother-in-law riding the bike and is it insured? That could open your nephew up to other legal issues. If the brother-in-law hits someone, and has no insurance, your nephew may be financially responsible. If his name is on the title, he has equal right to possession, and I doubt any judge in the country would order him to give the bike back, especially if he has proof that he's been making the payments. Tell him to talk to the lender and see if they can help.

[Mancar1]

A lawyer is needed for the advice you seek.

[DuckRyder]

A lawyer is needed for the advice you seek.

Ain't that the truth.

Need to read contract and know how the bike is titled for starters, suspect depends heavily on case law controlling in the jurisdiction.

[Ranchero50]

Ditto, plus if the bank is holding a lien on the title they are going to be the deciding factor.

Best advice is never co-sign for anyone...

[Mancar1]

Co signed years ago and ended up with the new car after 10 months. Did not want it, but as co signer U are liable if the person U co signed for doesn't pay. Boy did me and my late wife learn a lesson. Couldn't sell the car for another 18 months when we paid it down enough.
My fav word is now NO and has been every since. :lol

[crazyhorse]

I really appreciate each one of you for taking you time to give the good advice / information.

I understand why the cosigner can't be removed.

I was hoping some one knew of a "way out".

This is truly the best site period.

Thanks again.

God bless y'all.

[fastEdsel]

The best old saying/advice I have ever heard is, "with family you walk and talk." Car companies and motorcycle companies are in the business of selling product. How they get paid or the circumstances involved for them to get paid is none of their concern, just fork over the cash and good luck on the paper work afterward. I too have co-signed and at the very instant the ink went on the paper I was losing sleep. The biggest one was a co-signature on one of my brother's farm loan and it was for 6 big figures. A couple years later he signed a "quit claim" because he was going broke, and I haven't seen him since. Like over 25 years. Keep the peace, stay friends. I'm doing OK now and looking forward to the restoration of the '67 Mercury Ranger.

[chad67]

The shame of it is, the brother-in-law didn't need a new Harley, I'm sure. I've passed on a few deals because financing fell through and I refused to ask anyone to co-sign. If I have a financial setback, I don't want anyone else to suffer. I guess some people aren't as conscientious.

[occupant]

The shame of it is, the brother-in-law didn't need a new Harley, I'm sure. I've passed on a few deals because financing fell through and I refused to ask anyone to co-sign. If I have a financial setback, I don't want anyone else to suffer. I guess some people aren't as conscientious.

That's exactly where I'm at right now. I can't finance a new rollback without a co-signer and a large down payment. I can't finance a used one without a bunch of bank history and business references which I don't have. So I'm just saving up to buy the cheapest cash rollback I can find that functions enough to run a few months and get a better down payment saved. Or heck, if it keeps running, just save up the entire amount in cash. Same goes for where we're living. Paying $2250 a month for a hotel room at the moment. Granted, it comes with daily housekeeping, a dishwasher that works well, 7 days a week breakfast, 4 days a week dinner. Compared to renting a $1200/month 4 bedroom house (5 kids, 2 adults, no one will rent a 3 bed unit to us) plus utilities and 47 meals a month, it's a steal of a deal. The alternative is find a co-signer and LIE on the application about the number of kids we have so we can rent a 3 bedroom house or apartment. I'd rather not deal with all that. The hotel is badass anyway.

[crazyhorse]

Mr FastEdsel, I'm sorry you went through that with you brother.
It is good to hear you are doing ok now.
I hope you continue to do good.
God bless you.

Mr Chad you are right.

Thanks again for all the comments/information.

[bkyger]

This happened to a brother that I ride with. He made a couple payments to get it on track, made the guy sign a paper saying if he missed such and such payments my bro was going to repo it.. Now my bro has 2 soft tails.