assume balance problem

**dragon21** · March 11th, 2016 01:54 PM

The Deed of Sale between you and the original buyer/borrower is VOIDABLE. Simply put, he cannot sell what does not fully belong to him yet, or one that is still legally subject to a third party's claim.

An "assume balance" transaction is not technically possible. What is normally done to do everything above board, is for the bank to cancel the first mortgage, and draw another mortgage in behalf of the succeeding buyer, subject of course, to the bank's scrutiny and investigation.

What will happen here, ultimately, is that the bank will go after the first buyer. Since he/she disposed an encumbered car without the formal consent of the lender, that will not extinguish his primary liability. (No, too late for "shady" insurance escape here). But the original buyer can go after you, and since the sale is voidable ab initio, by the rule of quantum meruit, you should be required to return the car (which has now been missing) and the seller to return the sum you initially paid to him. Now the next problem will be how or what will be the value of the missing object.

Also, what you term as "Conditional Sale Agreement" is fatally defective. A valid Conditional Sale Agreement is an agreement wherein transfer will be enacted in favor of the buyer by the seller (who owns an unencumbered property, free from any claim) after buyer has completed payment of sum due to the seller. In your version of "Conditional Sale", your objective was for borrower (of encumbered car) to convey the property to you after you have paid the original lender of seller/borrower, who has not been solicited for consent, ergo has not given any, to your derelict transaction. Consent is paramount in these arrangements.

So, in short, you'll still be liable to return the car (or the market value thereof) to your SELLER (original borrower). But it is your SELLER (original borrower) will be liable to the bank. Your resort? Go after your buyer (if you can still find him). I'm sorry for such bad luck.

That's my legal opinion.

(But I have another recourse which judiciously, should not be printed here) :grin

**win23** · March 11th, 2016 03:20 PM

Call po si orig owner sa bank at declare niya nasa akin unit. Kaya po nag call sa akin si bank. Open ko situation ko regarding sa lost unit. Advice nila is di nila honor yun assume bal transfer. Means si orig owner pa din ang mananagot. In my case humingi ako ng advice sa bank pero wala sila binigay na options or whatever kundi bayaran till matapos ang loan.

**win23** · March 11th, 2016 03:30 PM

In my case po wala pakialam si bank sa akin? Between me at si orig owner ang magkaroon ng problema? Same docs ang execute po namin ni orig owner at 3rd buyer. Will the the insurance cover for this situation? Kaso ang problema expired na insurance. Tnx sir..

**win23** · March 11th, 2016 03:34 PM

Will I go to jail? Totoo po ba walang na kukulong sa utang.? Possible demand for the orig owner? Will I have a good defense like failure of sale or any .. Pasensya na po .. Tamang praning na sa problema .. Tnx

**dragon21** · March 11th, 2016 04:09 PM

Originally Posted by win23

Will I go to jail? Totoo po ba walang na kukulong sa utang.? Possible demand for the orig owner? Will I have a good defense like failure of sale or any .. Pasensya na po .. Tamang praning na sa problema .. Tnx

Again, based on your assertions, without an access to all pertinent facts:

Di ka dapat makulong. The worst that can happen is the court will be forced to attach properties (garnishment) to "return" the car (or the value thereof) to the original lender.

You don't want to involve the insurance company in your mess. That will complicate things, and it will not help your cause. Baka maging criminal liability pa.

The bank will rightfully go after the borrower, not you. Yung borrower ang maghahabol sa'yo. Sinabi na nga nilang they don't honor your "void" contract, so how can they oblige you to pay? As far as the bank goes, you're not a persona to the loan agreement.

I hope that this clarifies your questions.

**Bin Diesel** · March 11th, 2016 04:20 PM

Originally Posted by win23

In my case po wala pakialam si bank sa akin? Between me at si orig owner ang magkaroon ng problema? Same docs ang execute po namin ni orig owner at 3rd buyer. Will the the insurance cover for this situation? Kaso ang problema expired na insurance. Tnx sir..

If you don't have the capability to pay how can they force you?
When the original owner sold the car to you he accepts the risk that you not able to pay. Si insurance if expired na wala ng pakiaalam syo.

**papi smith** · March 11th, 2016 04:41 PM

Originally Posted by dragon21

(But I have another recourse which judiciously, should not be printed here) :grin

Dito ako naiintriga ehehe..

**win23** · March 11th, 2016 05:07 PM

Oo nga po sir.. Anyway sir report ko na po ito sa bank. Nanghingi nga po ako ng advice or to freeze yun loan just to hold yun mo. amort habang ina ayos po namin yun kaso. Pero hindi daw po pwede. Still pa continue pa din nila ang hulog sa car. Actually 3mos na default by 15th.

**ninjababez** · March 22nd, 2016 12:00 AM

Originally Posted by ninjababez

Wow my boss got declined for loan transfer. Taragis milyon milyon ang pera sa bank na-decline mag assume mortage sa halagang 650k na auto? Weird!

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Update:
I just remembered my boss loaned 2 other cars under his name for 2 of my officemate that were declined for car loan application. Ito na siguro yung reason na na decline sya. though ucpb ito, not thru bpi.

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