Legal Question in Consumer Law in Texas

Cosigning auto loan

I cosigned an auto loan in Texas for my baby sister. I went on vacation, and when I returned, she had quit her job and the auto had been taken to Oregon without my permission while I was gone. My insurance covers the auto with her added to my family policy. Can she register it in the State of Oregon without me since I am the primary on the loan? Is it legal to just take it out of Texas since I am the primary on the loan? Do I have any legal stand to bring the car back to Texas and sell it to relinquish my obligation to the financial institution. Do I have any legal stand to get this car back to Texas and what are the legal ramifications of me flying out to Oregon and taking the auto back. I do not understand what my legal rights are as being the co-signor on a co-signed loan


Asked on 4/25/04, 10:22 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Cosigning auto loan

Being a co-signer only means that you guarantee the loan will be paid if the principal borrower defaults. You don't have an ownership interest in the property.

It would be quite different if you had bought the car and took out the loan in your name. Then you'd be the owner, rather than your sister, and have all the rights of ownership.

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Answered on 4/26/04, 10:26 am


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