We owe $3000, but cannot pay. the car is worth 3000
We told the bank to reposses the car, They said that they will
just write off the loan, and to take the car to a junk yard.
If they write off the loan, doesn't that mean I have a free and
clear title? If not, How can I take it some where to get rid of
it if I don't have a title. I live in texas, but the bank is in Ohio
2007-08-11 16:38:13 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
Wrong. They will auction the car at fire-sale pricing and will expect you to pay the difference on what you owe and what the car sells for. On top of that, it is still a repo on your credit report -- for FIVE years. Why don't you sell it? Even if you can only get what you owe you will still be in a million times better shape and your credit won't suffer as bad (I assume it's already trashed). You could probably talk the bank into letting you sell the car for $2500 and finish the loan through payments. Again, this is a MUCH better deal as you can still maintain some measure of control.
2007-08-11 18:24:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Even though you volunteer to have the car repossest, the finance company will still try to sell it for what they can get, usually to a whole sale or auction. What ever they get, let say $1,500.00 you will still owe the balance of $ 1,500.00. The best thing you can do is call the company and tell them you want to sell the car for what you can get for it. You might get $3,000.00. If you get less pay that to them and have the title sent to the new owners and you will still owe the finance company the balance. I doubt they will write off the loan. You also can tell them that all you can afford is half the payment a month and to make up a new contract or else you won't beable to pay them at all and no one wins. Believe it or not you are in the drivers seat because they want thier money
and if they think they will get more by decreasing the payments they will. Unless the car is a totle reck. If the car is a wreck tell the insurance company some one recked your car. If you have comprehensive they may totle the car at book value and pay off your debt.
2007-08-12 00:08:52 · answer #2 · answered by fmhguitars 4 · 0⤊ 0⤋
Why dont you sell the car for $3000? NO you do not have a free car. What they do noy in Texas is issue a 1099 a tax time for the balance due and you will have to pay taxes on it. Been there done that. I would pay off the loan.
2007-08-12 05:33:17 · answer #3 · answered by Bill P 5 · 0⤊ 0⤋
Everyday the car sits in the repo lot the bank has to pay the recovery company money. It is easier and less costly for the bank to take it to a junk yard. After it sits on the lot the bank also has to pay for it to go to auction. They are just taking the easy way out.
2007-08-11 23:47:45 · answer #4 · answered by green_thumbs82 2 · 0⤊ 0⤋
Get it in writing before doing anything. Banks do not just "write off" $3000. Your credit will be trash no matter what if you default on the loan.
2007-08-12 00:49:57 · answer #5 · answered by sensible_man 7 · 0⤊ 0⤋