Equipment loans
Question
How does this work: Company is going under, wants someone to "Take Over Payments" on equipment. Clarification?
A guy my father knows has a dump truck that will be repossessed if he doesn't find someone to take over payments on it. I understand the concept of transferring the loan and title in to my father's name, but by "Taking over the payments", does that mean we would have to pay the guy money up front or does it mean that we just start paying the bank for the standard monthly payments?
3 weeks ago - 2 answers
Best Answer
Chosen by Asker
You need to find out who has the loan on the truck and see if you can negotiate with the lender. If this 'guy' has put a lot of money in to this piece of equipment, he will want you to pay him something on top of the loan amount. Be very careful that no one signs anything without a lawyer reading the paperwork over. As the guy above me said, this could be a scam and if you make the payments without some form of legal contract, the guy will keep the truck and any money you sank in to it.
3 weeks ago
Asker's Rating: 
Other Answers
Sounds like a scam to me as loans in the US are not transferable. If your father makes the payments, the other guy gets to keep the truck. The only way it works is if your father buys the truck from this "guy that your father knows" and the guy pays off his debt.
by MadMan- 3 weeks ago