Legal Question in Real Estate Law in California

Re: dispute over vehicle

How far behind was she on payments?

She can sue for any amount she likes, but it is probably under $7,500. I wouldn't worry.

Unless you misstated the facts, you are unlikely to lose. Next time, get legal advice before the **** hits the fan, not after.

Re: dispute over vehicle

Since you co-owned the vehicle, neither of you had the right to sell it to a third party without both signatures. All you owned was a part interest, and that's all you could sell, and that's all your friend acquired. Your ex still owns whatever interest she had before your deal with your friend, presuably half.

What about her being behind in payments, and your past assistance with the payments? You probably have a right to be repaid be her, but that right does not affect ownership of the car.

In Small Claims, the judge should give her a judgment for half the value of the car at the time it was taken away from her, plus court costs, and perhaps less one-half the excess payments you made on the original loan, but you will have to appear in court and present evidence that you are entitled to an offset. I don't think you need to file a counter-claim to ask for an offset.

How much can you lose? Up to a little over $7,500. Should you be worried? Yes, because there is quite a mess here, including what your friend is going to think, what the new lender is going to do when it finds out it lent money against collateral not fully owned by the buyer, what the DMV paperwork will require to straighten matters out, and so on. If the ex-girlfriend prevails in Small Claims and you are required to pay her half the car's value, you should ask that the judgment include a requirement that when you pay the judgment, she has to sign over her share of title to you in a format acceptable to the buyer, the lender, and the DMV.

The old saying "He who sells what isn't his'n, must buy it back or go to prison" probably doesn't apply here, because you seem to have made an innocent mistake without criminal intent.

Further, I could be wrong about the fact of co-ownership, not having personally seen the title or any other documents involved here.