Okay, I'm upside down on my truck by about $2000... If I sell it for less than I owe on it, how would I do that if it were just a private party sell? Do they get the title from the financial institution? Do I just pay off whatever is left with the current payments? How does this work out?
Also, is it possible for someone to just take over payments on the truck? How does that work out?
2006-12-10 06:37:53 · 6 answers · asked by ThatDude 2 in Business & Finance ➔ Other - Business & Finance
You can have them take over payments after they pay you something for your investment but the bank would first have to approve of it. Take them to the bank and talk to the loan officer who will check their credit.
Best to pay off the truck then just sell it for what you can. You may lose $2000 but there is no way to avoid it.
2006-12-10 06:40:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you sell your truck for less than what you owe on it, you'll have to come up with the difference to get the title from the lender to give to your buyer. The buyer's payment would make up the rest of the payoff of your current loan.
To find some one to take over payments, you'd either have to find someone willing to pay what you owe on the truck, or hand them cash for the difference. The lender would have to approve any "take over payments" sale - if they don't and you just do it unofficially, you leave yourself very vulnerable since you would still both own the truck and have the loan, so would be responsible for the truck and for the loan until it was paid off.
If it's an option for you, you'd probably be better off keeping the truck until it's paid off, or at least until its value gets even with what you still owe.
2006-12-10 07:18:31 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You can sell it for less than it is worth AND then you take your lumps. That is - pay off the balance. The loaning company would have to authorize this and the monies from the sale would go to them to be aplied against your loan. Remember the truck belongs to them until Paid in Full if it is on a contract. Be more careful next time and don't get caught in such a situation.
2006-12-10 06:42:36 · answer #3 · answered by Capt. CB; seguidor de Cristo! 5 · 0⤊ 0⤋
I would try to get someone to take over the payments. Maybe someone with borderline credit would do better doing that and eating the $2000 than paying even more with a high interest rate.
2006-12-10 06:43:11 · answer #4 · answered by Anonymous · 1⤊ 1⤋
You would pay the shortage to the bank out of your pocket, unless the bank agrees to a take-over-payments deal, which they might. I was in ths situation with my last car purchase; a credit union agreed to finance the deal even though it was underwater by $6,000 before we drove the new car off the lot. Having a good credit rating helps -- a lot.
2006-12-10 06:43:02 · answer #5 · answered by Anonymous · 1⤊ 0⤋
No chance of doing anything for several years probably.
2016-05-23 02:30:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋