Wife Cosigned Ex-husband's Car Loan. Divorce Agreement Dictated The Ex Refinance Into His Name, But He Never Did. He Didn't Pay Until The Point They Repossessed It. No Contact Was Made With My Wife About Repossession, And Now She Is Likely On The Hook For The Balance Due. Any Legal Recourse?

Location: Tennessee

My wife cosigned for her ex-husband for his car about 4-5 years ago. They got divorced and, in the divorce agreement, it was dictated that he would refinance the car in his name within a year, which would have had to have been done before last November. He never did. We found out he became addicted to drugs of some kind, and he was never one to hold a job for longer than a month anyway. A useless deadbeat. She received several letters that he was behind on payments, because he never changed his address with the loan company. But, she was never informed that the situation was to the point of them trying several times to repossess the car, only for the ex to give them the runaround or flat out lie about the location of the car.

She got a call from the ex's mom, and was told that the car had been at their house for months. Once she found out, she contacted the loan company earlier this week and they came to pick it up today. They are going to put it up for auction in 10 days, and whatever the difference is between the auction price and the loan balance ends up being, my wife will be on the hook as the co-signer. The ex won't pay anything. We could sue in civil court, but that wouldn't amount to anything but lawyer fees for us since he's a deadbeat.

Is there any recourse we can take here, legal or otherwise? We may try to go to the auction and buy the car to resell if the price makes sense. It's a Camaro in good condition. With the way vehicles have gone up in price the past few years, we may be able to sell it for the remaining balance, but that's obviously not a certainty.