the car is worthless but the bank has the title and with charges interest and everything the payoff has gone to 6,000..they wont repo because they say it is worthless which i know..they will not make a reasonable agreement and i dont have the money to pay it off..it is sitting at a car dealers repair shop. The transmission went out for a 2nd time and they say it is not worth fixing again. I transferred the plate to another car so I had a car to drive to and from work...the car dealer wants me to tow it and i owe them 150.00 because they looked at it and told me it isnt repairable...it is not operable...they said they would have it towed and put a title against it whatever that means...the bank also said they would report it to the IRS as an abanded debt and i would owe at least 50 percent of the balance in taxes...please someone give me some advice
2007-04-10 13:53:26 · 8 answers · asked by Shelly 1 in Cars & Transportation ➔ Insurance & Registration
As for the repair shop, tow it away to a junk yard that will take it. Tell the repair shop to take a leap. As for the bank you are going to have to settle with them. I don't think that the IRS has anything to do with this. Offer the bank 1/2 of what you owe. Good luck.
2007-04-10 14:05:17 · answer #1 · answered by en tu cabeza 4 · 0⤊ 0⤋
The mechanic is telling you that, he will put a lien on the title, so he would fall second in line for ownership, after your lender.Since the lender doesn't want to repo it, you can request a voluntary repo.This doesn't erase the debt, the car will be sent to an auction, the bid for the car, will be applied to your loan. You will still owe the balance of the loan. The lender is telling you that they are going to take your income tax refunds, any you may have coming to you, to pay off your debt. They will keep the lien on your tax returns, until t he debt is paid in full, plus interest, and repo fees. They don't want to work anything out at this point. Unfortunately, you get to pay the bill, even if you don't have the car, and having a repo on your credit report, will stop you from financing a vehicle for quite some time. Try to get the car out from under the mechanic, he can be charging you a daily fee, for each day you don't pick the car up. That could get expensive, real fast. No good news for ya, hope you can work things out. Good luck.
2007-04-10 15:43:59 · answer #2 · answered by fisherwoman 6 · 1⤊ 0⤋
It's understandable that the bank does not want a worthless car. They are not in the car business. They loaned the money based on YOUR credit rating with the car title to back the note.
If I were you, I would concentrate on making arrangements to pay the bank the money owed. They will take care of the car. (afterall, it does belong to them)
I don't know of any 50% taxes or reporting a bad loan to the IRS. But if you will reconfirm with the bank, I'm sure they will help make the other problems go away.
2007-04-10 14:04:53 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Bad situation for you. the first thing is to talk to the bank, and tell them you owe the money and you want to pay it, will they work with you on it. The repair shop will put a quick claim against the car, which is a workman's lien for work that has been done but not paid for. They can auction the car off and take the money to pay for their bill. any extra is used to offset the auction cost and other fees, if there is any more money left after that, you are supposed to get it. Just don't count on getting anything from it. You might try and talk to them and see if they will accept the car as payment for their work. If not then call an auto salvage company and sell the car to them and use the money to pay the car repair shop off.
Try to work with them instead of avoiding them, they don't want your car they want their money. Good luck. If you have anything else to sell, that would help reduce your debt.
2007-04-10 14:03:55 · answer #4 · answered by Fordman 7 · 1⤊ 1⤋
Answer is no...unless they have the car listed as callateral on your loan with them, and they should be listed as a second lien holder. If they do they would have to payoff the 15700 to bank before they could do anything with your car. Chances are they dont want to do that. I am not an attorney by any stretch however I am a car dealer.
2016-05-17 06:43:26 · answer #5 · answered by ? 3 · 0⤊ 0⤋
The best thing to do is to contact an attorney who specializes in this type of situation. The bank is being unreasonable, and if they feel the car is worthless, they should set a price for you to pay off the car so you can get rid of it, or they should repo it and take the loss. They have made their money on it already, seeing as how you pay more for the interest than the principal the first year of ownership.
2007-04-10 14:00:50 · answer #6 · answered by drunkmunkey25 3 · 0⤊ 3⤋
you are in a bad spot, if you owe $6k on a vehicle that is not worth fixing then you either paid too much for it or took out too long of a loan. you should never owe more than a vehicle is worth.
2007-04-11 10:52:32 · answer #7 · answered by henry k 1 · 0⤊ 0⤋
If you owe on a loan you have to pay it. There is no way around it. It is your responsibility to have the proper insuance to cover this kind of mishap. the bank is under no obligation to make a deal with you. Find a wat to start paying off the loan.
2007-04-10 13:58:55 · answer #8 · answered by Papa Joe 4 · 3⤊ 0⤋