My friend, let's call him, "Ben" had gotten a title loan couple of years back on his Toyota. He made several payment, but could not keep up with the payments.
The loan company sent out repo people several times to his house, but it was at times when he wasn't there.
About a month after the repo guys started dropping by, Ben had to move to new place because his lease has expired. Ben, of course, did not inform title loan company.
It has been little over 3 years since that time and Ben still has the car. However, he has not been able to register it because the title loan company has their names on the title as co-owners and they would need to sign off on the form as well.
Now, he recently moved from CA to another state, job related.
Here is what Ben would like to know:
1. What would happen if he surrended the vehicle now?
2. Did Ben need to tell the loan company where the vehicle was when he realized the repo guys were coming around? Since it's been over 3 years, is there any legal remifications he needs to worry about?
3. Is there any way that he can register the vehicle without the loan title company signing off on it?
4. What happens if repo never finds Ben and Ben never lets them know where he is? He has never intentionally avoided them but he neither let them know where he was either.
5. Nothing regarding this vehicle (Amount owed or the repo) has appeared on his credit report. Do the repo guys have to physically repo the vehicle before anything appears on this credit report?
Any help is appreciated.
2007-08-06 19:52:44 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
1. If he returns it, they would sell the vehicle for far less than what he owes on it. He would be liable for the deficiency, any repo fees, any interest that has accrued in the past 3 years.
Even if he takes it to them in person, there would still be repo fees. The cost of of the previous repo attempts, the paperwork, the cost of conditioning the car for resale at auction, the cost of transporting it to the auction site, etc., etc., etc.
2. It's doubtful Ben would face any legl ramifications. The loan company and repo people have many ways of tracing people. It sounds like they just dropped the ball on completing the repo.
If he had received a court order demanding the car be turned over and ignored it, then he probably does have legal ramifications.
3. No he will not be able to register it without the loan company signing off.
4. There could be many different things that may happen, they could continue to forget about it, they could easily find where he lives and continue to try to repo it, they could get a court order demanding he turn it over.
5. He is fortunate that it is not reporting.
He should check with the courts in every town/county he has lived in since he defaulted to see if there is a judgment filed against him.
It would be in his best interests if he managed to get a loan with a different loan company to cover the cost of the vehicle and pay the existing loan company off.
If he did that, he would be able to title the car and quit having to look over his shoulder.
I seriously doubt the existing loan compny will ever even consider dealing with him in taking payments on the car.
Until he takes care of the loan, he will NEVER legally be able to sell/trade the car. It is not his to sell. If he sells it he could be charged with a felony.
2007-08-06 20:28:40 · answer #1 · answered by echo 7 · 2⤊ 0⤋
1. If Ben cannot make the payments as schedualed this is his best option. If he is behind in his payments but can make regular payments now, he should contact his creditor. They will probably be willing to make arangements.
2. No legal ramifications.
3. No leagal ramifications there either.
4. They will find him reguardless. One day he will wake up and the car will be gone.
5. He will get a negative credit report reguardless of the repo effort.
If he can make payments on the car, he should contact the creditor and express willingness to resume payments. They might be receptive. If he cannot then the care will dissapear one night and be reposessed.
2007-08-06 20:03:48 · answer #2 · answered by cryptotich 3 · 0⤊ 0⤋
Bottom line is for Ben to sell the car if it's enough to pay off the loan. Many repo men charge a fee every time they go out whether they find the car or not. Ben should call customer service and find out how much the pay off is. If it's not enough for a pay out, he should surrender it.
2007-08-07 09:00:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Auto finance is what I do for a living and Echo is completely correct on all points.
2007-08-07 01:49:27 · answer #4 · answered by ? 7 · 1⤊ 0⤋
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2007-08-07 20:54:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋