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My car was repossessed, now what?

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emayearecee
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My car was repossessed, now what?  Reply with quote  

My car got repossessed on a sunday and I brought my account current on the Friday before. I was supposed to contact the lender when I brought my account current but since they were closed for the weekend I wasnt able to get in touch with them. Now the lender is giving me the options to pay in full, find a new lender or walk.

Ideally I would like to keep the car since I've already sunk 10k into it but I have 20k to go over the next four years. So I'm thinking it might be better to just walk and free up the $440 each month but what are the long term effects? From what I understand the lender will auction the car if I walk and I'll have to pay the difference.

I'm thinking of maybe getting the car back then selling it for whatever I can get for it but I really don't know what the smartest move is.

Some other pertinent info:
-car was over 60 days past due
-I lost my job so I couldn't pay but now have a job that pays well
-My credit is shot
- I dont have anyone thatll help me cosign
Post Wed Aug 29, 2012 1:22 am
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oldguy
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quote:
I dont have anyone thatll help me cosign


Well, whatever your choice, don't ask anyone to cosign, that would put someone in a terrible spot - but hopefully you would be turned down. Young people don't seem to understand what they are asking when they try to get a parent or a friend to cosign. If you had a cosigner right now, his credit would be trashed and the lender would be coming after the cosigner for the $20,000 balance.
Post Wed Aug 29, 2012 2:36 am
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littleroc02us
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So are you saying that this was a 30k car. You'll need to form the pros and cons on this one, sounds like you got car fever. I've been there, but we'll never go back unless I can pay in cash. Here are your options:

1. find out the private sale of the car on KBB and hope that you may only have to take out a small loan to cover the difference. Sure beats having a repo on your record.

2. Let them take it, they will sell it at the auction for nothing and then sue you for the difference and then your credit will really stink for a long time.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Aug 29, 2012 2:52 pm
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littleroc02us
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quote:
This is good advice to let them take it, they will sell it at the auction for nothing and then sue you for the difference and then your credit will really stink for a long time. By the same you will get good return and you don't need to find buyer also.


Actually I wouldn't say good advice, just options.... Nothing is good about a repossession.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Sep 13, 2012 2:47 pm
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rsacs01
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If the lender sells the vehicle at auction to someone else, the auction proceeds will be applied to the outstanding balance on your loan, the auction fees, the repossession fees, and storage fees. Usually, there is not enough money to pay these fees in full Ė resulting in a deficiency. Ask your lender to let you pay the deficiency over time. If the lender agrees, get the terms of your agreement in writing before you pay the lender any money. The agreement should include the amount of your installments, when the agreement begins and ends, if interest will apply to the deficiency and, if so, the rate of interest that will apply, when you will be in default of the agreement, and the consequences of the default.

If your lender insists that you pay the deficiency in a lump sum, donít do it if it means you wonít have the money to pay your mortgage or rent, buy groceries and medication, or to keep your utilities running. The deficiency is an unsecured debt. This means that if you donít pay it, your lender will have to take you to court to try to collect the debt. If you are unable to pay the deficiency and you have a significant amount of other debt, you may want to consider filing for bankruptcy
Post Thu Sep 27, 2012 8:57 pm
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nsmith508
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How about just buy a $1000 beater and never have to worry about car repossession.
Post Thu Nov 08, 2012 10:53 pm
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