Title on Vehicle I Co-signed

READER QUESTION

I co-signed on a motorcycle loan for a friend. He defaulted and I paid for the bike. Now what?

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

You did not mention your state of residence, so it is impossible for me to help you with the exact steps you need to follow. In general, you need to go to your state's department of motor vehicles and get the form that handles the satisfaction of indebtedness secured by a subordinate lien or encumbrance on a motor vehicle.

Complete the appropriate form, and bring it to the deadbeat owner to sign. Bring the document to the DMV, and have the motorcycle placed in your name. At this point you are free to sell the vehicle or otherwise take possession of it.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Comments (2)


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Bills.com
January 13, 2010
As a co-signatory you have liability to pay the creditor if the debtor defaults. I am not aware of any means of removing yourself as a co-signatory. See Will Co-signing On a Loan Hurt My Credit Score? for a more complete discussion of this issue.
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Melissa .
January 13, 2010
I co signed for a motorcycle for my childs dad on the promise that he would pay the bill, he stopped paying the bill and now he lost his job, what am I to do I do not have 11,000 dollars, and I am unemployed too.
Thanks for your feedback!

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