My sister's boyfriend cosigned on a vehicle loan a year ago. There are two years left and he wants to be removed as the cosigner. He is threatening to take the car if she doesn't get him removed. What options does she have to get the loan only in her name? Refinance? Does he have any rights to the property as a cosigner if she isn't deliquent?
Unless he's listed on the title to the vehicle, he has no legal right to it, and he would have to jump through some hoops to get legal rights if your sister defaulted on the loan while he is still a cosigner on the note. We think it would be wise for your sister to try to eliminate any hold this person thinks he has over her. We'd first suggest that she ask the current lender to consider releasing the cosigner. That would be the least expensive and easiest route, if the lender will entertain the request. Your sister might have to provide an updated credit application so that the lender can confirm her current creditworthiness. If the current lender is unwilling to release the cosigner (and we know this is a real possibility because most lenders aren't happy about giving up a cosigner), the next alternative is to attempt to refinance the loan in her own name.
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Unless he's listed on the title to the vehicle, he has no legal right to it, and he would have to jump through some hoops to get legal rights if your sister defaulted on the loan while he is still a cosigner on the note. We think it would be wise for your sister to try to eliminate any hold this person thinks he has over her. We'd first suggest that she ask the current lender to consider releasing the cosigner. That would be the least expensive and easiest route, if the lender will entertain the request. Your sister might have to provide an updated credit application so that the lender can confirm her current creditworthiness. If the current lender is unwilling to release the cosigner (and we know this is a real possibility because most lenders aren't happy about giving up a cosigner), the next alternative is to attempt to refinance the loan in her own name.
