Conference quark::human_relations

103.0. "Do I need Thomas Magnum or F. Lee Bailey?" by AKOCOA::ROLLINS (five fuzzies) Wed Sep 13 1995 22:13

    I just had the shock of my life.  I applied for a mortage
    and was denied because of a repossession.  This repossession
    happened in 1990 to a tractor I had signed over, lock stock
    and barrel, to my ex in 1986.
    
    I haven't been home yet since I found out about this and
    I am not sure if I still have the paperwork.  This tractor
    was signed over in front of the finance company Rep in
    my kitchen (with my animals being held hostage in the
    basement until this was completed..but that is another
    story).
    
    I signed over the title and the finance documents to
    the ex, did not co-sign for him, got my animals and that 
    was the last time I saw him or the tractor. 
    
    When my ex defaulted no attempts were made by anyone to
    contact me.   Apparently, he skipped town owing a lot
    of people a lot of money.  He still has an outstanding
    balance on the tractor.  I have no idea where he is now.
    The finance company is very interested in his whereabouts.
    
    Their legal department is investigating the situation.  I
    am expecting a phone call about how they want to proceed.
    If they will not remove this from my credit report I will
    get a lawyer (how can they let this effect my credit when
    I was not notified that a repossession would/did take
    place and allow me to make restitution at that time?). 
    
    My bigger concern right now is that I will be held accountable 
    for the remaining balance (I don't remember the exact purchase 
    price but I think it was somewhere around $50K).
    
    What are my rights?  I don't want to pay for a lawyer
    unless I really have to but I don't want to make the same
    mistake twice - if I had a lawyer 9 yars ago then I
    wouldn't be in this boat right now.  Although, at the
    time, it never occurred to me I would be held accountable
    for anything in the future once I transferred ownership - I 
    just wanted my babies back.   
    
    Any ideas?
    
    thanks,
    beth
    
    P.S. A good piece of advise I got today - run a credit report
    on yourself annually.  I never thought a problem like this
    would show up or I would have run a report on me myself...I just got 
    an American Express card...get those pre-approved thingies in the mail 
    constantly...pay my bills on time - it just never occurred to me. 
    

Unless the finance company participated in the exchange and formally released
you from the obligation, you are indeed liable for the full balance.  Your
situation is, unfortunately, common in divorce cases - the couple does not
want to be bothered with (or is unable to) refinancing loans to remove one
party from the obligation.  They're then dependent on the reliability of the
other party.

If the finance company DID release you from the obligation, then they are
required to send a correction to the credit bureaus.

Other things you can do - you can add a 100-word explanation to your credit
report and you can write the mortgage company explaining the situation which
may get them to change their minds.  Provide any documentation you have.

					Steve

    Thanks, Steve...the Finance Company representative was there and
    signed the paperwork as a witness.  This is why I thought I was
    covered.  Apparently, the step I missed was that I should have
    recorded the transaction in the courts.  Noone mentioned this.
    
    I have received a referral to a lawyer...looks like I'll be
    spending my downpayment money on him :(
    
    thanks,
    beth
    

I take it you didn't have a lawyer for the divorce?

		Steve

    re -.1
    
    Nope...we were living in sin :)
    
    thanks,
    beth
    

Ah - well, in any event - if the finance company believed that you were
released from the loan, it's their responsibility to send a correction to
the credit bureau.

					Steve

    Apparently, this happens frequently.  I was released from the
    loan except in the event of a repossession, then as the original
    lien holder, it reverts back to me.  
    
    The finance company Rep did not mention this when I signed it over 
    and no attempt was *ever* made to get in touch with me.
    
    I'm still fighting it.   They are "sympathetic" to the situation,
    but still are basically telling me there is nothing they can
    do.  I don't understand how they can do this completely without
    my knowledge.  All they have to do is fax a note to the credit
    bureau requesting that it be deleted.  I don't understand why
    they can't do that?
    
    thanks,
    beth