Posted 2009-03-12 10:12 AM (#101184) Subject: ASSUMING PAYMENTS ON TRAILER?
Member
Posts: 22
Location: ortonville, mi
I HAVE A TRAILER THAT I REALLY REALLY NEED TO SELL AND ITS ADVERTISED ON HORSETRAILERWORLD THRU A DEALER IN TEXAS. ANYWAY A PERSON WANTS TO TAKE OVER PAYMENTS. WELL IN ESSCENCE WOULDN'T THAT BE LIKE ME GIVING HER MY TRAILER AND KEEPING PAYMENTS IN MY NAME AND ME ACTING AS HER BANK? OR IS THERE SOME OTHER WAY THAT I AM NOT FAMILAR WITH. THE WHOLE IDEA OF SELLING MY TRAILER IS SO I DON'T HAVE THE PAYMENTS OR DEBT. I MEAN I AM NOT A DUMB PERSON, AS IF TRAILER IS IN MY NAME I AM RESPONSIBLE PARTY. JUST WONDERING IF THERE IS SOME KIND OF DEAL I AM NOT AWARE OF. I WOULD THINK SHE WOULD HAVE TO TRY TO GET A LOAN FOR IT? PLEASE IF ANYONE KNOWS ANOTHER WAY LET ME KNOW.
Posted 2009-03-12 10:49 AM (#101188 - in reply to #101184) Subject: RE: ASSUMING PAYMENTS ON TRAILER?
Location: Central Arkansas
The gal that works for us sold a truck that way to someone she knew from her old work. They made a few payments, then moved to OK, wrote a few bad checks for a couple of payments, then just quite paying all together. There is a warrant out for their arrest but they have come back to AR several times to visit and never been picked up. She ended up having to pay thru the nose for a truck she couldn't afford to keep for herself, yet doesn't have any longer. Plus, it they get drunk and have an accident in it, it could come back on her! She found out the hard way that by allowing them to take over her payments left her with basically no way out but to honor her commitment to pay even though she no longer had the truck.
I would not take a chance with my credit if I was you. As long as it is in your name you are liable for it. Let them borrow the money from the real bank. Nobody is gonna bail you out if they default.
Posted 2009-03-12 11:54 AM (#101191 - in reply to #101184) Subject: RE: ASSUMING PAYMENTS ON TRAILER?
Location: Colorado
Aside from the risk you take by not being able to transfer the loan, title and lein into the seller's name, most finance contracts prohibit you from doing this. It really is usually not a good idea.
Posted 2009-03-12 12:02 PM (#101193 - in reply to #101184) Subject: RE: ASSUMING PAYMENTS ON TRAILER?
Veteran
Posts: 136 Location: Alabama
The only way I would sell anything on a "take up payments" deal is if the buyer borrowed the remaining money from a real bank and the loan was in their name only. Please do not let anyone make payments to you or keep the loan in your name while they take the trailer. You stand a VERY good chance of ruining your credit AND losing your trailer.
To me "taking up payments" means that the buyer pays off your loan at the bank in one lump sum payment by taking out another loan in their name only. Banks do this every day so talk with your loan agent and they will be able to help you out. Of course all of this depends on the buyer being able to get approval for a loan on the trailer but again, that is the banks decision not yours. If a buyer wants to "take up payments" by making payments to you on your loan, that should throw up huge red flags. Makes me think for whatever reason, the buyer can't get a loan themselves which then makes me think they won't be making the payment very long to you but they will have your trailer. Bad for you no matter which way you look at it.
Posted 2009-03-18 10:06 PM (#101727 - in reply to #101184) Subject: RE: ASSUMING PAYMENTS ON TRAILER?
Member
Posts: 15
Location: Glen Mills, PA
You have the right idea......the buyer MUST pay off your loan and arrange financing for themselves. NEVER allow someone to make payments for something in your name. You are responsible for the payments and any liability as long as you are the owner.
Posted 2009-03-19 5:35 AM (#101732 - in reply to #101184) Subject: RE: ASSUMING PAYMENTS ON TRAILER?
Regular
Posts: 54 Location: Ohio
I agree with everything everyone has said. Plus another thing, if you were to take the chance and let someone make payments to you, the trailer debt will still show up against debt to income ratio and might impede your ability to get credit for other things you might be wanting....house, farm, new truck, etc. So you would not be gaining anything from a credit rating standpoint even if you found a good honest person to "take over payments".
ASSUMING PAYMENTS ON TRAILER?
