Taking over payments

[MarauderMark]

What exactly is involved when your taking over payments from someone in another state?
itsa great deal for me but i have never done this before..any help would be greatly appreciated:up:

[fastblackmerc]

What exactly is involved when your taking over payments from someone in another state?
itsa great deal for me but i have never done this before..any help would be greatly appreciated:up:

I think it means exactly what it says... you'll be making the payments instead of someone else. Therefore you are now responsible for making said payments and whatever else the original contract stated, like keeping insurance coverage, etc.

[arejayesss]

My understanding is that the new owner / payer will need to be approved by the lending institution on the original loan. Then, as previously stated, you will 'take over' payments.

[Blk Mamba]

I think it means exactly what it says... you'll be making the payments instead of someone else. Therefore you are now responsible for making said payments and whatever else the original contract stated, like keeping insurance coverage, etc.

Also this does not help your credit report, it only helps,(hurts) the original borrower.

[MarauderMark]

Are there any fees or penalties i may have to pay and also would i have to pay taxes too?

[arejayesss]

Are there any fees or penalties i may have to pay and also would i have to pay taxes too?

You should read all paperwork involved. Every agreement is different. Then, read the papers again.

[Raudermaster]

Yep, you cannot finance it for a lower apr, nor can you get lower payments, I.E if the original owner pays $400 a month, that's what you'll be paying.

[MarauderMark]

Yep, you cannot finance it for a lower apr, nor can you get lower payments, I.E if the original owner pays $400 a month, that's what you'll be paying.

Would i have to make the payments or could i have the option to pay it off? also would the payoff be cheaper since if i do pay it off?

[Raudermaster]

I do not believe you get any breaks even though you are taking someone else's payments over

[fastblackmerc]

Would i have to make the payments or could i have the option to pay it off? also would the payoff be cheaper since if i do pay it off?

As stated in an earlier post read the documents......... then read them again....

Make sure you understand them completely!

[MarauderMark]

As stated in an earlier post read the documents......... then read them again....

Make sure you understand them completely!

Oh i will most certainly read them:up:

[frdrckmarauder]

I've worked in several banks...There is no such thing as "taking over payments". The finance company or bank contract doesn't allow for
transfer of title to another person just because the 'check' is coming from
someone else. This transaction will not go through. If the owner tries
to go through with this, when you try to title and register your car, the DMV won't do it because there is a 'lien' (loan) on the vehicle.

There is a prior post addressing the current lienholder approving you as a new owner. If this is the case, it would be a new and discrete contract.

If you have good credit, apply with one of the many online lenders, and get
a PERSON TO PERSON auto sale loan. You can usually select your loan term.
The interest rate is usually determined by your FICO score and may include other factors.

[MarauderMark]

I've worked in several banks...There is no such thing as "taking over payments". The finance company or bank contract doesn't allow for
transfer of title to another person just because the 'check' is coming from
someone else. This transaction will not go through. If the owner tries
to go through with this, when you try to title and register your car, the DMV won't do it because there is a 'lien' (loan) on the vehicle.

There is a prior post addressing the current lienholder approving you as a new owner. If this is the case, it would be a new and discrete contract.

If you have good credit, apply with one of the many online lenders, and get
a PERSON TO PERSON auto sale loan. You can usually select your loan term.
The interest rate is usually determined by your FICO score and may include other factors.

So i would have to goto where he has the loan with and ask them if they will make a new contract with me as the new owner? or go with cash to pay it off and they will hand over the title to me there and then?

[frdrckmarauder]

The bank doesn't care where the cash is coming from.
If you pay off his loan, the then free and clear title will go to HIM.

He can, however, sign the title over to you. Don't let him out of your
sight until he signs the title over if you decide to pay the loan off. Since there
may be a delay in getting the released title, this is not a good idea, unless
the two of you can walk into the bank and the title is right there. Most aren't.

There is no prepayment penalty on any auto loan in Maryland.

If you want a loan, don't go to his bank unless their is some incentive
or legal reason (none that I can think of). Get your own loan from one
of the many banks online..

[ctrlraven]

I've worked in several banks...There is no such thing as "taking over payments". The finance company or bank contract doesn't allow for
transfer of title to another person just because the 'check' is coming from
someone else. This transaction will not go through. If the owner tries
to go through with this, when you try to title and register your car, the DMV won't do it because there is a 'lien' (loan) on the vehicle.

There is a prior post addressing the current lienholder approving you as a new owner. If this is the case, it would be a new and discrete contract.

If you have good credit, apply with one of the many online lenders, and get
a PERSON TO PERSON auto sale loan. You can usually select your loan term.
The interest rate is usually determined by your FICO score and may include other factors.


The bank doesn't care where the cash is coming from.
If you pay off his loan, the then free and clear title will go to HIM.

He can, however, sign the title over to you. Don't let him out of your
sight until he signs the title over if you decide to pay the loan off. Since there
may be a delay in getting the released title, this is not a good idea, unless
the two of you can walk into the bank and the title is right there. Most aren't.

There is no prepayment penalty on any auto loan in Maryland.

If you want a loan, don't go to his bank unless their is some incentive
or legal reason (none that I can think of). Get your own loan from one
of the many banks online..

Right on the money.

Most people who do "taking over payments" are usually friends or family members someone that you can trust to not screw you over. I had a 2006 F-350 powerstroke and had a lien on it from Ford Credit. When I moved I had no room for it and with the added mortgage payment and other house bills I just couldn't do it anymore. Let my uncle take the truck since he needed a new one. As he pays it builds my credit score/history, only thing he really had to do was get insurance on it before I dropped my insurance on it and send the updated insurance information to Ford Credit. Once it's paid off I will be sent the lien release and then sign the title over to him.

[MarauderMark]

I have a family lawyer i will get in touch with him Monday..Thanks again all.

[HwyCruiser]

Right on the money.

Most people who do "taking over payments" are usually friends or family members someone that you can trust to now screw you over.

Dave Ramsey would LOL at that little slip.

[frdrckmarauder]

Yeah...he'd chuckle at that.. If it were up to Dave Ramsey, no one
would have a car loan....NO ONE...No credit cards, no forms of credit
at all unless MAYBE a mortgage that, according to him, must be paid off
ASAP by doubling and even tripling up on the payments, selling all the junk
you have in your house, and having as he puts it "rice and beans diet"
for as long as it took to pay the mortgage off. At that point, you would
be debt-free (hopefully), and can start SAVING up for the new cars and
all the other junk that you want.

[ctrlraven]

Dave Ramsey would LOL at that little slip.

Haha good catch on that. I did an fact mean NOT lol.

[Tom Doan]

Saw over the week end that this is undoable between different states because Maryland has better laws to protect you.

[Egon Spengler]

Sorry... I just like the logo
http://www.surfanddirt.com/nofear/assets/product_images/PAAAAACIEOJHLMPCt.jpg

[Aren Jay]

Have a really good look into this.

Is it just a Loan or a Lease?

If a Loan, then you can just pay the guy for the car and he takes out what he doesn't owe and pays the place he borrowed from.

If it is a lease how much is the buy out? You do not want to get stuck with a huge buy out in a year or two.