Full question:
I financed a car for a friend of mine three years ago; there's two years left on the balance. I need to obtain a form(s) that he could sign, showing he will promise to make the monthly payments - and if he defaults, I have the ability to either sue him or at least show that he was liable for the remaining balance. What type of form would I need? Should I get a promissory note drafted, showing there would be a loss of collateral if he did not pay or Should I have something drafted called a recourse Note? Could You guide me in the right direction? Do these forms have to be notarized after both parties sign?
- Category: Automobiles
- Date:
- State: Pennsylvania
Answer:
This could be done in several manners. A unsecured promissory note in which case the note would be a promise to pay but not be backed by a lien on the car. A secured promissory note could also be done where the car is the collateral for the note payment so if the note is not paid the car could be repossessed. Other financing methods are also available. If he owns the title without it showing you as a lienholder, he could assign the title to another person to obtain a loan. Do you hold the original title so he cannot pledge it to someone else? You should probably consult an attorney in your area to resolve this.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
