Repo my car?

Question

If the bank repos my car will it effect the refinancing of my house?

Answer 1

yes, it will ruin your credit rating and you wont get a decent interest rate on your mortgage.

Answer 2

YES - all the things that affect your credit affect the refinancing of your house. However remember that when you refinance you contract - then close. If your car gets repoed after closing then it won't affect your refinancing. If your car gets repoed between the contract date and closing - it may affect your refinancing if you are required to disclose to them any material change in your finances after the time of contract but before closing - (this is likely in your contract - but the bank may not really care if they have a good rate and your home as collateral - no guarantees here though) - and IF your car gets repoed before contract then it will absolutely factor into what new rate the lender offers or whether they will offer a rate at all. To be safe, make your car payments a lil while longer and then see about voluntarily "surrendering" your car - you still have to pay for it though - but the penalties are less severe.

Answer 3

If I were YOU I would STAY out of court and get your life in order first. It appears that you have a serious problem with car purchases. If you purchased a car and you have not kept the payments up on it the seller (or person/company holding the note) has a perfectly legal right to repo the car and sue you for the balance due. And the judge will side with him. As to your complaint of it being a lemon, there is NO law governing such a thing unless the car was purchased new from a dealer, expericenced a defect that the dealer was unable to correct with 3 consective efforts and all of this occures within ONE year from the date of purchase. Buying a used car is a "buyer beware" proposition unless the selling dealer SPECIFICALLY, and in writing, says otherwise. Most dealers are smart enough not do this. As to your compalint that the "small town dealer" rips people off, be careful. You apparently have submitted to beinig "ripped off" on at least two ocassions and the laws of basic stupidity will certainly work against you if you were to use it as a defense. The court in this repo case will be looking at only a few issues, 1. DID you make the obligation to make payments on this vehicle? 2. Did you in fact FAIL to make those payments oin atimely manner? 3. Did the loan company/dealer give you proper notice thatyou were in arrears and that they intended to repo the car? Note: In many-if not most- contracts, there is a non-notification clause annuling the requirement to give notice, your "notice" being the terms of the contract. I would say good luck but it would be a waste of good text. The judge will be there to enforce the loan contract and no amount of "rip off claims" and "lemon" cars will sway him from doing it. As to the last item, you need to LOOK at the dates on the contract of the car reposession and the original note. Some states will not permit a suit to go forward if it is beyond a certain time limit (2 years) It is called the Statue of Limitations. They MAY have waited too long. As to their having "sold" that first repo'ed car to your friend does NOT in the least, absolve you of your original loan obligation on that car. The loan note STANDS as it it written UNLESS you can convince a judge that the resultant resale proceeds should go to offset your contract liabilities. Leagally, it will not, but you MIGHT get a judge to listen.

Answer 4

I'd bet it would, if you haven't finished refinancing the house yet. If the bank repossesses the car, it means you defaulted on the car payment, and showed that you are not trustworthy or weren't able to pay that loan. How can you expect a lender to trust you with a mortgage (maybe $100,000 or more) if you can't even make the payments on a car (maybe $10-20,000)?

Answer 5

I would refinance before the car gets repo'd. It takes about 30 days for the repo to show on your credit once they come and get it. If you can close on your re-fi before that, the finance company will not see a repo.

Answer 6

Yes it will. Any lates on your credit within the past 90 days will effect your rate and or approval.

Answer 7

If it hits your credit file before they pull a credit report, it could. If it goes on your credit after the financing goes through, it should not make any difference.

Answer 8

Yes, anything that will lower you credit score will affect your interest rate, and vise versa good credit score lower interest rates.

Answer 9

It depends on how far behind you are on your car and how far into the refinance you are.