Unfortunately, you cannot force the bank to take your name off the loan agreement-you agreed to guarantee the loan and pay it if the co-signer did not. The only way to get your name off the loan that I am aware of is for the other person to refinance the car, or to sell it to someone and pay it off.
The good news is that refinancing the car loan is the only way to remove a co-borrower's name from the loan and title. By refinancing, either you or your ex-spouse can become the sole owner of the vehicle, and your name can be removed from the loan and title.
Your best option to get your name off a large cosigned loan is to have the person who's using the money refinance the loan without your name on the new loan. Another option is to help the borrower improve their credit history. You can ask the person using the money to make extra payments to pay off the loan faster.
To remove your name from the loan, your ex would generally need to refinance the vehicle in her name alone. This process requires her to qualify for the loan based on her own credit and income. If the lender approves, the new loan would replace the current one, releasing you from any financial responsibility.
But if your circumstances change over time or your credit score improves and you would like to remove the co-signer from your loan, there are three primary options. You can refinance, get a co-signer release or pay off the loan.
Pay off the loan
If this is a manageable option, you must contact the lender and pay off the current balance along with the payoff amount. Once the loan is paid off in full, the responsibilities of both the primary borrower and the co-signer will end.
Can a co-signer remove themselves from a car loan? In general, the terms of the co-signed loan cannot be undone. To reverse the co-signer's obligation, the co-signed loan must be paid off, or refinanced, with or without a new co-signer.
Good news, though – you can remove your name from the loan and get your name off the title. This can be done by refinancing the car loan and making either one of you the sole owner of the vehicle. Refinancing is the only way to remove a co-borrower from an auto loan.
The lender must approve removing a co-borrower from a title. Typically, you must refinance the loan and qualify on your own for the lender to approve removing them from the auto loan and title.
Being removed as a cosigner from a loan could potentially hurt your credit scores. How much your scores are impacted depends on the details of your credit profile.
A co-signer doesn't need to stay on the loan for the life of it, either. After making the required principal and interest payments, you can apply to release them and manage repayment on your own.
You can often remove a cosigner at any point during the loan period. Your loan paperwork might dictate specific terms, though. For example, some lenders require 24 months of on-time payments from the primary borrower before they'll consider releasing the cosigner.
Can You Transfer Car Loan to Another Person? Most lenders will not simply transfer a car loan from one borrower to another with the exact same payments, terms, and rates remaining on the original loan. Typically, when the registration and title go to a new owner, the lender has to be advised.
A lien is created as soon as you finance a car. In most states that means the lender holds the car's title and is considered the vehicle's legal owner until the loan is paid in full. The lien protects the lender and allows them to repossess the car if the borrower stops making payments.
Dispute the Fraudulent Loan – Send formal dispute letters to the credit bureaus and the lender. Include copies of your identity theft report, police report, and any other evidence that supports your claim. The credit bureaus are legally required to investigate your dispute.
Request release from a co-signed loan
Co-signers can make a written request to the lender to be released from a loan. In certain cases, like some student loans, there may be a provision that allows a co-signer to take their name off a loan.
Option #1: Get a Cosigner Release
If you cosigned for a loan, one of the quickest routes out is to apply to the lender for a cosigner release. This lets the cosigner off the hook, so that only the primary borrower is the one listed on the loan going forward.
A loan assumption or modification could release a co-borrower from your mortgage without refinancing, preserving the current homeownership. However, lenders aren't required to grant these options, so be prepared to negotiate.
To get your ex-wife's name off of your vehicle title and registration in California, you will need to do the following: Obtain a copy of your divorce decree. Complete a DMV Statement of Facts form. Pay the applicable fees.
Your options to remove your ex from my car loan are simple, just take out a loan in your own name, and pay her anything she's owed, pay the old loan off, and what's left is whatever YOU still owe in your own name. Usually, the reason someone asks another to co-sign is because he doesn;t qualify for the loan.