Taking over pmt but not going through a bank....?

Question

We have a boat that we rarely use, but owe $13,000 on. My husband's friend said he wants it and will take over the pmts, but doesnt want to go through a bank. I think that is ridiculous and I said no. We cant give someone the boat and have it still be in our name with our insurance. That is tooooo risky. I even called that bank and they said my hubby was insane because if something happened, we'd be liable. How do I make him see this? He thinks it's fine because its his friend. I think he is nuts!!!!

Answer 1

Yeah, sounds nuts to me. But are a bunch of opinions from some goofs at Yahoo! gonna change his mind? It will go sideways, and he will lose this friend. Sometimes you gotta learn the hard way.

Answer 2

go through the bank do not live it in your name, to risky.

Answer 3

Yes, insane.  Everything is fine....until it is not fine.  If the friend can't get his own loan...there is something very wrong and smelly here.  Your whole lives will be on the line here.  Why can't you advertise it and sell it to someone who can get a loan or pay cash?  I wouldn't touch that deal with a Ten Foot Pole....

Answer 4

I have worked for two financial institutions over the last 10 years, I would strongly advise not to give this person the boat and let them take over the payments. If for any reason....any financial hardship that they could encounter, that could be the 1st pmt to go. It is in his or your name (titled) and y'all are contractually liable to fullfill that debt to the bank. I see many loans carried out this way, if a payment is late or one bounced check could end up in a 30 day credit mark on your score. One mark could drop your credit score up to 100 points. Sell it on a website or in the paper, anything else. Or insist that they take out a loan from a bank or credit union. YOU ARE NOT A BANK AND THEY ARE NOT CHILDREN....I strongly advise against. I see people get burned every single day

Answer 5

its a very quick way to lose a friend,if anything i would co-sign for him at least this way all ins is on him and if he re-nigs on the payment you get the boat back,your credit may get hurt but your out of a few months payment...good luck