Unlike co-borrowers, who are on the title or have some claim to the property or funds, co-signers have no title or ownership of the property the funds are used for. For example, a co-signer for a vehicle has no legal right to the financed vehicle.
If they cosigned for the loan, then they are equal owners of the vehicle. Their name has to be on the title and registration. Depending on what state it is titled in, it may be an And title. What that means is that it will take both parties to sign the title and documents when you are ready to sell.
In short, it is possible to remove the cosigner, but you'll need to refinance, sell the car and pay off the loan, or take advantage of cosigner release options that exist for your particular loan.
While a cosigner's primary responsibility is to guarantee the loan, their ability to insure the car depends on ownership and insurable interest. Typically, the primary borrower insures the vehicle, but the cosigner can be added as an additional insured if needed.
Remember that a co-signer is not on the title of the property and cannot take ownership of it. Getting a home loan with a partner is the same as if applying solo. Each party will need to provide proof of income, assets and bank statements, proof of identity, and other documents.
Because, the titled owner of the vehicle needs to match the “Named Insured” on the policy so the policy can respond to a claim without delays and avoid the potential of denied coverage.
When the title states “and/or” or “or” in the name field, only one person needs to consent to remove a name. If it only contains the word “and,” both parties need to agree to remove any name from the title. Therefore, you'll need to get consent from the co owner.
The answer is no, the cosigner has no legal right to take possession of the car. As a cosigner, you don't have legal ownership rights to the vehicle. In other words, a cosigner is on the vehicle's note (making them liable for the payments) but not the car title (which indicates ownership).
Fortunately, you can have your name removed, but you will have to take the appropriate steps depending on the cosigned loan type. Basically, you have two options: You can enable the main borrower to assume total control of the debt or you can get rid of the debt entirely.
You need the already existing title to prove your ownership of the vehicle. Sign the seller section to indicate yourself as the seller, then provide your name and the person to be added in the buyer section. Enter both names with the appropriate conjunction to indicate whether it is a Joint or Common Ownership.
A cosigner is a second individual on your loan application who can help boost your chances of approval. A cosigner doesn't have ownership in the funds or the asset you're signing a loan for.
Get a co-signer release
While not all lenders offer this, a co-signer release is simply paperwork that removes the co-signer from the loan. Keep in mind that leaving can negatively impact the rates the now-primary borrower will receive, especially if your credit score is better than theirs.
If you want to sell the car by yourself, you may not be able to – you're likely to need your co-borrower to complete the sale. Both of your names are on the title, which can make selling the vehicle complicated. You're also likely to need your co-borrower's permission to transfer ownership legitimately.
If you are both owners of the vehicle, you'd both have legal rights to the vehicle. In other words, if you wanted to get in the car and drive away with it, you'd have the right to do so, since (presumably) you're the owner of the car as well (this does not apply if you're only a co-signer on a loan).
From a legal perspective, however, there's a big difference: A co-borrower will appear on the property's title, but a co-signer will not, in most cases. Being on the title comes with its own set of rights and responsibilities.
You can remove the co-signer by refinancing your auto loan, receiving a co-signer release or paying off the loan. Before removing the co-signer, ensure your credit score is high enough to receive the same or comparable rate if you refinance.
In general, if someone takes or controls your property without your permission, it could potentially be considered theft. Here if you contacted the police department they would investigate whether it is theft and charge him with a crime if they believe one has occurred.
The order of the names on the title do not matter.
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.
A title is the proof of ownership and it ties the car to the name of the seller. If you try to sell a car without a title in your name, you just don't have the authority to sell it. You may also face fines and some jail time. And, you may even still be legally responsible for the car.
To avoid such complications, it's advisable to establish joint ownership of any vehicle or titled property. Signing a title with “name or name” creates joint tenancy, a legal statue under which either party can claim ownership. This simplifies the process in the event of one partner's death.
Cosigners who are hesitant to make this type of commitment may request that their name be on the title of the vehicle as added protection. In some cases, a cosigner's name may be added to the title.