Stoner Loan Applicant

[AccountingDrone]

Yeah, I used the wrong formula above. Looks like they would have combined payments of around $991.40.

But still...yeah, that's a ton of money, percentage wise, to spend!

Damn, that is our mortgage payment on a small farm...

[Cia]

We get our titles too and if there's a lienholder it's listed on the title.

[fireheart]

How can they have a title but not have paid off the loan? My bank has the title on my car, and I won't have it in my hands until it's paid for.

Car could also have been secondhand. I have a personal loan that was used to purchase my car, but I bought it secondhand and only took out enough to cover it. (My parents are listed as cosigners)

[Ophbalance]

Car could also have been secondhand. I have a personal loan that was used to purchase my car, but I bought it secondhand and only took out enough to cover it. (My parents are listed as cosigners)

Maybe it's just my bank then. I rolled one of the cars into a personal loan and they still have the title. They did the same to the last car I rolled into that loan, and I received the title in the mail one day when the value was paid off. And that car I had purchased whilst still in PA.

[mathnerd]

There are three basic ways states handle car titles when there's a lien on the vehicle.

1) Owner keeps the title with lien holder listed on it.
2) Bank keeps the title
3) Electronic title with all relevant information listed in a database.

Some states e-title with an option for paper.

[taxguykarl]

around here, the bank keeps the title until the vehicle is paid off.

It's the same here in Illinois. My wife was so eager to get the title when she sent (certified mail) the last payment on her '06 Highlander.

[Ghel]

Because of the way it works here in Minnesota, customers frequently don't process the lien release when they pay the loan off. We sign the lien card and send it to them with their paid loan documents. We tell them to keep the lien card with their title. But it seems like half the time, the customers lose their lien card and we have to fill out a new lien release (our loan software has a form for that) so that they can sell the vehicle. It's a pain, sometimes.

[Caractacus_Potts]

But still...yeah, that's a ton of money, percentage wise, to spend!

I love my BIL and SIL but they are financial idiots. They built a McMansion in SC. If everything had worked out perfectly their plan was for 70% of their income to go to the mortgage. They wound up going over budget by several hundred thousand dollars and in the end could not convert their $700K construction loan into a mortgage (the bank would only go up to about $400K). They lost the house.

Did I mention they decided to act as their own general contractor even though neither one has ever worked in the construction business?

They probably had co-signers or bumped up their income on the vehicle finance applications. Ghel's probably right: those rides will be repo'ed sooner than later.

Or one or both of them may have had jobs/better paying jobs when they purchased the vehicles.

[cindybubbles]

Where do they live? Maybe they can try an online loan site like DollarsDirect.ca