i have lost my job due to illness and am medically prohibited from working for awhile. I am upside down on car payments and need to get out from under them.
2007-07-31 09:21:46 · 13 answers · asked by Ken 1 in Business & Finance ➔ Credit
They will sell it at an auction for penny's on the dollar, you will be responsible for the rest. Then they will hound you and possibly file a suit in court for their money, Your credit score will go way down, and it will be on your report for 7 years. You could end up owing as much as you do now, but be without a car. Did not know you could lose a job due to illness did you not have insurance to cover that? That would be the direction I would be looking at to help get out of this situation.
2007-07-31 09:28:53 · answer #1 · answered by Pengy 7 · 1⤊ 0⤋
The bank may have other options for you, like deferred payments. I've worked for a car loan servicer before and we offered this. If you absolutely cannot keep the car, it is better to have a voluntary repossession rather waiting for them to get it. No matter what type of repossession you do, since you're upside down in the loan there WILL be a balance due that you will be responsible for. Any chance you can sell the car and come up with the difference, or have a friend/family member take over payments for a while?
You say you're off for medical reasons....do you have a disability clause on your loan? if so, then you're covered!!
To the first answer on here about wrecking it...that's a great idea, really! As long as your insurance is current and make sure it's a total loss. Do something like park it on a hill and let it roll backwards into a wall or over a cliff. Just don't tell a lot of people so you don't get in trouble.
2007-07-31 09:30:26 · answer #2 · answered by casw1 4 · 0⤊ 0⤋
A repo is not good but it seems like you have little choice here. I was in the same situation and actually was able to hold on to my car until I went back to work. I paid a payment about every 3 months. They bugged me and threatened allot but did nothing. The truth is that they are not a car dealer and don't want your car. So try to work out something with them.
If you end up having to let it go you will still owe the payments you owe now but eventually you can rebuild your credit.
People don't realize how important credit is until they lose it.
2007-07-31 09:28:48 · answer #3 · answered by m_c_m_a_n 4 · 0⤊ 0⤋
You should not have the bank reprocess your car for many reasons. Your credit will show a "Repossession" on your credit report and that "Secured Debt" will become a "Unsecured Debt" and anything left over after the auction will still need to be payed by you. You would be better by selling it yourself and paying proceeds to the Creditors under some sort of agreement to avoid such "Repossession". However, if you are in a serious credit crisis (Bank Foreclosures, Repossessions") you may want to involve a attorney to help negotiate special payment terms with creditors or file Chapter 13 Bankruptcy to protect your assets.
2016-04-01 03:59:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Not only will the voluntary repo negatively impact your credit, the bank will sell the vehicle (probably at auction prices) and come after you for the balance.
You might be better off to find someone to take over payments.
2007-07-31 09:27:30 · answer #5 · answered by bdancer222 7 · 1⤊ 0⤋
Well the bank isn't going to be sympathetic to you. I feel for ya though. However, when you let a car go back (to the bank ect..) it will damage your credit and more so if you've only had the car for a short while. It will take 7yrs to get that off your credit.
2007-07-31 09:25:17 · answer #6 · answered by civicnitro 3 · 0⤊ 0⤋
A repo weill go on your credit report and stay there for at least 7 years
2007-07-31 09:24:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
its called repossession and its not something you want on your credit.
Try contacting your lender and giving them the documentation, they might be able to work something out. At least make an attempt to let them know that you'll be late on payments
GL
2007-07-31 09:26:52 · answer #8 · answered by min77ion 5 · 0⤊ 0⤋
Foreclosure ruins credit and probably have a deficency balance to deal with on the car you will probably STILL have to pay off.
2007-07-31 09:24:56 · answer #9 · answered by wizjp 7 · 0⤊ 0⤋
well that will result in a repo.....
you wont get another car loan, without sky high interest rates..
takes 7 years to clear
2007-07-31 09:24:23 · answer #10 · answered by Anonymous · 0⤊ 0⤋