Our Suburban was totalled and we'll still owe a minimum of $3K, although waiting on final valuation from the ins. co. The bank says we have 10 days to pay it off after ins. payment is received. Ain't gonna happen. Bank says we can buy a new veh. and "roll over" amt. but we don't want to be upside down again, so not going that way. Next option is to get new loan with collateral, of which we have none. We won't qualify for a new loan anyway. So what do we do? Income is below poverty level and we have no assets. If they take us to court, they'll win (we DO owe the money), but then what happens?
2007-07-15 05:22:29 · 7 answers · asked by pkmom 2 in Cars & Transportation ➔ Insurance & Registration
Since you didn't have gap insurance, if you don't pay the balance, it will show up as a negative report on your credit history, and it is possible that they take you to court for the unpaid balance, and if they win, implement a garnishment of wages until the balance is paid off. My personal idea is if they are a large finance company, they will just cast a negative report and write off the account. Let's hope for the latter!
2007-07-15 09:20:42 · answer #1 · answered by worldthatwas 3 · 0⤊ 0⤋
That is very strange.. ive never heard that. They have every right of course to get their money... but usually you can just continue to pay your monthly payments until its paid off if the vehicle is totalled. Have you discussed just continuing to pay monthly payments to them? Did they flat our reject that? It seems very unreasonable that they expect all the money within 10 days.
Sorry not much help here.. obviously worse case scenario if somehow legally they can do this is yoru just going to have to rollover that money into a new loan. Justmake sure this next loan has higher montlhly payments on a car thats worth less so you can get can get caught up and not be in this situation again!
2007-07-15 05:57:17 · answer #2 · answered by la428282 6 · 0⤊ 0⤋
Check your paperwork, most times when buying and financing 100% you take out GAP insurance for just this event. If you still have your original paperwork see if yes indeed you took that out and that will cover it. If not get a new car and apply that extra amount on the loan and get the insurance. If the accident was not your fault but someone else's then they are responsible for the difference.
2007-07-15 05:33:00 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
first of all just relax. tell the bank to give you a personall loan to cover the difference. or just keep paying on the existing loan. they won't sue you if you continue to pay. if it's the only way for them to get there money they pretty much have to do it. if it's a local bank just go down there and talk to them in person. just remember they won't sue you unless you don't pay. if they did they would be in the same boat. you would still just be ordered to make some kind of payments to them. as long as you continue to make payments you should be ok. just communicate with them. tell them its your intention to pay them in full but you need a little time. of have them give you a loan on a new ride and put the ballance on that one. good luck
2007-07-15 05:32:34 · answer #4 · answered by doug h 5 · 0⤊ 0⤋
I think that is BS. A bank can never ask for more than 2% of the amount borrowed monthly because it's probably in the agreement you signed when borrowed.. They will not take you to court, it wouldn't be worth it, especially for 3k. Tell them the truth, but all in all you still have to make at least some monethly payments.
2007-07-15 05:27:53 · answer #5 · answered by Saddler 3 · 0⤊ 1⤋
As long as you send them SOMETHING, they can't really do a whole lot about it! Even if you only send them $20 a month! Good luck to you!
2007-07-15 05:33:37 · answer #6 · answered by Ridiculous 3 · 0⤊ 0⤋
They will put you in collections if you don't pay it.
2007-07-15 09:10:01 · answer #7 · answered by bundysmom 6 · 1⤊ 0⤋