Several months ago, my husband received the notice from the bank said that my husband had not paid money for the car. At that time, my husband told the bank to take the car back from the buyer
But the bank could not do it because the buyer had an accident at that time and it was completely damaged, so we have to pay money for car since.
Now my husband receives the notice that he is liable for the loss caused by accident, and it seems that the buyer did not pay for insurance during the time buyer used it. Does my husband have to pay for the loss caused by accident?
Posted: 03 May 2013 06:40 Post Subject:
Yes, definitely. Your husband is still the legal owner of the car. So, whatever happens, it'll be his liability to oblige with. In this case, he has to grapple with both the bank and the damage caused due to the accident.
Posted: 03 May 2013 01:12 Post Subject:
He only sent the bank the letter to transfer title to the buyer by fax.A person cannot sign a contract (loan) and then simply walk away from it. The bank has a lien on the title so ownership cannot be transferred to someone else without the bank signing off (which they did not). So your husband did not sell the vehicle and he's still obligated to the terms of the loan contract (to make payments).
Does my husband have to pay for the loss caused by accident?
Your husband (and you, since you are married) allowed someone else to drive _your_ vehicle and _you_ failed to maintain insurance in it as required by law. You also failed to honor _your_ contract (the loan) in making payments to the bank. How many errors is that?
So yes, you'd still need to pay the bank for the loan and you also now need to settle the liability claim with the other party. You probably have a slew of other fines and fees to pay as well (such as fines for not having insurance, towing/storage on your vehicle, higher insurance rates for not maintaining insurance on your vehicle, bad credit for not making payments on the vehicle, etc).
Sorry... but thinking you could just give the car to someone else and walk away from a loan is not the brightest. Thinking someone else would just continue to may _your_ payments on the loan and maintain insurance on _your_ vehicle was also not that bright.