Expert: Joe Montgomery - 5/20/2007

Question
I share ownership of a car with my mom.  It is title in both our names.  The car is paid off and is worth around $10,000.  I need some cash to pay off a couple of bills and I want to get a loan at a bank for around $2,500 using the car as collateral.  I am 23 years old and have good credit.  However, my mom had to file bankruptcy a couple of years ago and her credit is really bad.  With the title being in both my and my mom's name, can I get a loan by myself without her having to be on the loan?

Answer
She would need to sign the title of the car over to you.  Even if you are the only one trying to get the loan, because she is part owner of the car, they can't use it as collateral if she is on title with you.
Once she signs the car over to you, this will no longer be an issue.