Problems with reregistrating my car!?

Question

I just found out my registration was suspended since last year. Due to a problem with the title. In order to reregister it I had to get a "letter of authorization from the bank (car loan) allowing the title in one name and the loan in another name". The loan is mine but I did have a co-signer.

So I called my bank and they said they couldn't allow that because I would have to take out a new loan in order to change a name in the title but i'm thinking that it shouldn't be a problem if either of the names were on the title. Since we are both on the loan.

Anyone have any ideas? I'm lost! I'm currently on hold to talk to a DMV rep. been waiting for almost an hr now. I didn't think it was going to be this difficult to get a d**n letter!

Answer 1

It sounds like the bank did not understand what you actually wanted. You may want to call them back and ask for a supervisor.

The bank wants to be sure that the title is in the name of at least one person on the loan. They want to protect their security interest.  If a person not on the loan (or who has authorized in writhing the use of the property as collateral) is on the title, then the bank can not repossess the car if needed.

Other people can be responsible for the loan and not have an ownership interest in the car.   They just can not have an ownership interest in the car and not agree that the car is collateral for a loan.