Legal Question in Real Estate Law in Michigan
I purchased a vehicle, with my father as co-signee. A few years later, I lost my job and fell behind in my payments, and he was forced to make them so it did not get reposessed. After talking about bringing my balance up to current (not past due), my bank with the loan was willing to work something out with me to either reduce my payment amount or come up with a situation. My father was ready to do this, but decided at the last minute he did not want to. He then went and made the truck payment 'current', and came over to my house, demanding I give him the vehicle. I was upset, but did so. I found out a few weeks later that he has paid off the vehicle, and now wants me to give him the title so he can sell it. I have no transportation, and must walk to my new job and I need transportation. My question is, since he paid off the loan, do I have to just give him the title, and am I out of luck? The truck is in my name (he's the cosignee on the loan, now paid off), but he is telling me it's his now. What options do I have? If I demand he return me the truck, can he take me to court and sue me? I'm willing to pay off the loan to him, albeit in small amounts, as I do not make much money. I'd like to get a second job, but for that, I need a vehicle.
Thanks,
Rob Szydlowski
2 Answers from Attorneys
You certainly don't have to hand over the title as you have ownership interest in the truck. I think you have a strong case for possession, but the police would have to assist and they might bit get involved. This will likely end up in court unless you work something out with your dad. If you give him the title, you are done. Contact me at www.kliszlaw.com to discuss further. Tim Klisz
A lot depends on what the agreement (contract) was you had with your father. If you agreed to pay the payments to the bank, then you should have paid the payments. If you agreed to repay your father if he got stuck paying the payments (which he did), then you need to repay your father. By co-signing on the loan, your father got stuck making the payments, (he should have protected his interest in the truck by having his name on the title) but he certainly has a claim against you for unjust enrichment if you keep the truck and fail to re-imburse him for payments that he made. You do not have to sign the title to the truck, and your father would have to sue you for the payments that he made. If he wins, and then if you can't pay, then maybe the court awards him the truck. Either way, you would be smart to start paying your father as much of your paycheck as you can toward the debt you owe.
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