I let a person use my name to purchase an automobile and his negative equity on his prior automobile cause the loan to be 45k. The car is worth 25k and the loan is still 40k. The person split and now I am stuck with a 40k loan and a car. I think I am going to call the bank to repo the automobile but what will happen to the difference. I know for a fact that I cannot pay the difference because I am a college student with no job or cash. I have learned a horrible lesson in life and is now paying for it. I need some advice on what to do.
2006-09-11 23:18:58 · 13 answers · asked by helpless 2 in Cars & Transportation ➔ Buying & Selling
Allowing a person to use your name on a loan is called "FRAUD" & is illegal.
I think you are in more trouble than you think.
Sorry to be the bearer of bad news !
Please don't shoot the messanger !
2006-09-12 05:13:42 · answer #1 · answered by Vicky 7 · 2⤊ 0⤋
The loan was in your name with your permission so You owe the money. Pay up or have your credit ruined for 3 to 5 years after you settle the loan. Alternatively, bankruptcy gets you off the hook 9 to 18 months down the line but ruins your credit for 7 years. So take over the loan renegotiate the payment to bring them up to date and enjoy your very expensive car. Do nothing and it will be worse the Bank is not going away. Had this been financed as a conditional sales contract the options would have been different you could have walked!
2006-09-12 06:26:44 · answer #2 · answered by Brian M 4 · 0⤊ 0⤋
Since the loan is in your name, you are responsible for it. You really only have two options since loan is so far upside down.
1. Make the payments.
2. Don't make the payments and allow it to go to reposession.
Since you say that you can't afford the payments, letting it go to reposession is probably your only option. The bank will sell the car at option and you will be held liable for the balance. Based on your numbers, that will be at least 15k. The exact amount will depend upon what the car sells for at auction (probably something close to its wholesale or trade-in value) and how much in the way of fees and charges (towing, storage, etc.) the bank tacks on. You could easily wind up owing 20k if things go badly. Assumning that you can't pay this, your credit will be trashed for the next 5 - 10 years or more.
Based upon the way you worded your question you probably don't even have any recourse against the person that you allowed to use your credit to buy it in the first place. At least if you had co-signed the loan, the bank would go after both of you for the debt.
2006-09-12 08:09:27 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you return the car to the dealer as a voluntary repo, or you allow it to be re-possessed for non payment, the results will be the same. Your credit will be shot for the next 7 years and I don't believe re-possession will cancel the debt. Instead I believe they will sell the car and apply what they get for it to the debt and leave you owing the balance. The best possible thing to do is to sell the car for the best possible price and apply the full amount toward the loan. What ever you decide on this you should keep very good records because if the culprit ever resurfaces you will need to sue for damages. For a better answer contact the people at the website I provided for free advice... they know their stuff.
2006-09-12 07:20:25 · answer #4 · answered by jamesnjenifer 3 · 0⤊ 0⤋
You are not in a good position.
If you let the vehicle get repossesed you will be responsible for the amount after they liquidate the vehicle. In other words if the car is worth 25k and the loan is worth 45K you will STILL OWE them 20K even after they take back to vehicle. They have the option to sue you obviously. It really doesnt matter if there is another signor on the contract because you are BOTH equally responsible for the money.
Unfortuneatly it looks like you really do not have much of a choice...chalk it up as a life lesson learned
2006-09-12 10:57:44 · answer #5 · answered by B_Auto 2 · 0⤊ 0⤋
They will sell the car at auction and you will be responsible for the balance on the loan.It's a wholesale auction so the price will be well below retail.If you can make payments your better off selling it yourself.You will still owe money,but chances are it will be considerably less.Talk to the lending company for more options they will work w/ you as much as they can.They would much rather find a way for you to fulfill the loan obligation than default on it.
2006-09-12 06:22:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Call and tell the bank to come get it. Then find that person, and do whatever you have to to make the situation right. (take $15,000.00 worth of their stuff, invest the money in having some harm come to them, get the debt owed to you "collected" by a pro, for a small percentage of the total owed, etc.)
2006-09-12 12:08:08 · answer #7 · answered by EileenNellie 2 · 0⤊ 0⤋
You'll go on record with a voluntary re-posession. Doesnt do well for your credit, be difficult to get any credit of anykind for a couple of years. But you can work your way out of it with time and good spending habits.
2006-09-12 06:21:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
They will still charge you the difference, I believe what the car is worth according to the blue book.. It will be on your credit until it is paid off..
2006-09-12 06:21:39 · answer #9 · answered by Tracy 4 · 0⤊ 0⤋
Complete the lesson... turn it in and arrange to pay the difference with the bank. They know what to do. You're not the first person this has happened to.
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2006-09-12 06:25:31 · answer #10 · answered by Anonymous · 0⤊ 0⤋