I am considering taking over payments on someone elses trailer. The loan would remain in their name and I would send the payments via my personal check to the financial institution. I have a legal agreement that a lawyer is drawing up to protect both of us. The lady is pretty anxious to get the trailer to me and needs me to go ahead and send 2 payments when she delivers it. Should I be concerned? What could go wrong here?
Thanks
Posted 2010-01-25 8:38 PM (#115702 - in reply to #115698) Subject: RE: assuming payments/lease
Expert
Posts: 2954
Location: North Carolina
Owner has to make two payments ??? Check to be sure the loan will be current. Many loans can be in default if payment is missed. The lender can then call the full amount of the loan immediately. You'll both be SOL.
Posted 2010-01-25 10:20 PM (#115707 - in reply to #115698) Subject: RE: assuming payments/lease
Expert
Posts: 1351
Location: Decatur, Texas
Originally written by FANCYPAINT on 2010-01-25 8:03 PM
I am considering taking over payments on someone elses trailer. The loan would remain in their name and I would send the payments via my personal check to the financial institution. I have a legal agreement that a lawyer is drawing up to protect both of us. The lady is pretty anxious to get the trailer to me and needs me to go ahead and send 2 payments when she delivers it. Should I be concerned? What could go wrong here? Thanks
There is alot of loan companies that will not accept payments from 2nd or 3rd parties unless the loan is being paid in full! You might get away with it a few payment then the questions will start. You will need to read the fine print on her contract as well, some have statements against assuming payments.
Why does she need 2 payment? This sound kind of fishy to me.
Things that could go wrong:
She could change her mind and end up just putting the payment money in her pocket and the loan go in to default and you will be out a truck and the money.
you wreck it and insurance not want to pay, because you carry the insurance and the truck is in another name. This is the way the isurance company will get out of paying, also in the fine print. No matter what the insurance man tells you, read it for yourself first!
Posted 2010-01-26 3:20 AM (#115709 - in reply to #115698) Subject: RE: assuming payments/lease
Location: centrally located amongst the "NUTS"
I believe that before I did anything I would have a couple more legal opinions on the contract you are having written. There are alot of things that can happen doing this and only one is good for you.
Posted 2010-01-26 7:37 AM (#115712 - in reply to #115698) Subject: RE: assuming payments/lease
Veteran
Posts: 123
Location: Indiana
Why not just purchase the trailer for what she owes on it? Have you seen the title, or bill of sale proving that she owns it or its in her name. Is she going through a divorce and trying to get some fast cash? 2 payments most likely means that she's already 1 behind. I wouldn't do it. Just purchase the unit if its something that you want.
Posted 2010-01-26 1:03 PM (#115742 - in reply to #115698) Subject: RE: assuming payments/lease
Veteran
Posts: 197
Location: MT
Here is a big problem is when you get done making the payments and the loan has been paid off the title is going to go the orginal lender and not you. Than you have to get the title from them, and this could prove to be a giant headache cause your name won't be on the title and the bank won't let you put your name on the title while they have a loan against it. So when the loan is paid off and the title is sent out they could take that title and sell the trailer right out from underneath you and you couldn't do a thing about it cause your name isn't on the title. If i was the loan officer(and I am a loan officer at a bank) I would be wondering why you would be making payments on someone elses loan. You are better off refinancing the loan through your own bank and gettin the title put in your name.