Refinancing a loan into spouse's name.

pharmboyrx · 11-24-08, 07:48

My wife and I are getting a divorce. Her brand new car that I just bought her

, has the title and loan in my name. I've told her she can keep the car if she can refinance. If not I'm selling it and she can have whats left over when the loan is paid off.

She tried to apply for a loan, but was told she can't refinance to her name if her name is not on the title.

What would be the easiest way to go about this? The title is held by the lienholder so I do not have a copy. Do I have to go to my lender and have them change information?

yakky · 11-25-08, 06:39

Have you checked with the current bank? Some banks allow re-assignment of responsibility where they move everything to the other person in certain cases. Title, loan, everything...

Picus · 11-25-08, 06:58

Your lender may or may not change the information; it'll depend on if they want to loan to your wife sans your income, etc. If not, you'll need to get a loan from another bank (doesn't have to be a car loan, just a loan) then pay off the current loan with that money. The only issue there is the interest rate may be higher or the term longer.

Either way, good luck. Sorry to hear about the divorce.

pharmboyrx · 11-25-08, 08:46

I'm trying to get in touch with my lender, but the title/DMV department only has voicemail so I have to wait for that.

As far as the interest rate or the term, don't care! It won't be my responsibility.

I just want this to go smoothly. This car is the only difficult (at least financially) part of this. What pisses me off is my wife knew we were headed towards a divorce when we bought it 2 months ago. If I had know this was going to happen I would have just given her the down payment and let her find her own car.

yakky · 11-25-08, 09:04

If its Honda, they will tell you to re-fi through someone else. The big bummer is you have to have pretty good credit to get a re-fi now, the big guys want a 700+ credit score.

pharmboyrx · 11-25-08, 09:43

I finally got in touch with my lender and they will only allow the loan holder to be on the title. They will work with my stbx to get her a loan. My credit is impeccable, but her's isn't quite as good. I hope she can get approved as I don't want to go through the hassle of selling the car and having to deal with her getting a new one.

Picus · 11-25-08, 10:34

I'd let her deal with it at this point. I'm not surprised they are unwilling to transfer the loan. Most lenders just won't do it; especially when they're transferring to someone with a lower credit score. I'd just treat it like she was buying the car from you for the amount of the loan. If she can get one (at whatever rate/term) then it's all good, but if not, tough.

Why would you have to help her get a new one? Just goodwill?

gmblack3a · 11-25-08, 11:53

Sell the car and give her whatever is left over after payoff.

pharmboyrx · 11-25-08, 07:59

Right now we are working this out so it will be uncontested. We are writing up a marriage separation agreement and hope to keep lawyers out of it. It it goes mediation or a judge's decision, I will end up paying alimony since I make 3 times what she makes. She isn't asking for it now. I'm just trying to keep her happy so we don't get hostile. I figure this can be upsetting and expensive or upsetting and cheap.

We just found out we can get her qualified through my credit union (same lender) under her own name and transfer the title within the lender. They will essentially pay themselves off, thus removing me from the car.