Overhaulin'

If I owe $2000 more on my car loan than my car is worth - will I still be able to refinance the loan?

I currently have a loan on my car under my mom's name and mine. I want to refinance the loan and have it solely under my name, however the car value is $2000 less than the loan. Will I still be able to refinance or am I going to have to come up with the $2000 on my own? NEED ADVICE!

Public Comments

1. The answer won't change just because you ask the same question with slightly different wording. As I said the first time: The bank requires the holder of the loan to have full coverage insurance on the vehicle. To make any changes you would have to refinance the loan and get it wholly in your name, and only then could you change the insurance. Warning in advance, usually unless you have stellar credit, they won't loan you more than a percentage of the value of the vehicle. Since the loan is currently upside down, and you owe far more than the worth of the vehicle, they are very likely to reject your application. And if you are under 25 your insurance would likely increase also.