[margog85]

I have a loan on my 1998 Ford Escort SE with an outstanding balance of approximately $3,000.00. The car is in not-so-great condition, with over 100,000 miles, a major dent/hole in the drivers side front and rear doors. I got the car back in high school, when I had no other bills and the monthly payment was affordable. But when I was forced to move out of my parents home, and bills started piling up, I missed a number of payments, and the loan was sent to collections.

Although the car was the collateral for the loan, obviously, it was never repossessed. It was in collections for about a year with only one payment of approximately $200 being made on it during that time. Meanwhile, my insurance lapsed, I had to turn in my plates, my license and registration were suspended... the car had broken down, wouldn't start, had three flat tires... was towed to Goodyear, and sat there for about 9 months while I worked on paying them off to get it out.

As I started getting back on my feet, I wanted to get the car back on the road, but was nervous about doing so with the loan in collections. So I called the bank, and since I work for the same bank I have the loan through, they accepted the loan back out of collections and have been letting me pay it off as a closed loan account. Still with very high interest, near the 20% range, if I remember correctly. I've been making payments regularly for about the past 5 months.

Recently, my partner lost her job and, with her unemployed, we have not been able to make the car payment this month. Once November 1st hits, the bank will turn the car back over to a collection agency for repayment through them. I asked the man I've been dealing with about repossession, because if the car is repo'd then that squashes any hope of my partner finding another job any time soon, as the jobs are all so far from the house. He won't give me a straight answer, just saying that they will assess the value of the vehicle, and if it is deemed worth the expense of repossession if referred to the agency and they decide to repo the car. He won't tell me what their assessment is based upon, if they are able to obtain info about the mileage, damage, etc. Because considering all of that the car is most likely not worth very much at all.

My question is, if they didn't reposess the car last time it was sent to collections, can I bank on it not being taken this time around? The condition of the car has only gotten worse over time, with more mileage and mechanical problems... Should I grovel for money from a family member and try to pay the bank before they send it to collections to avoid reposession? Or should I let it go to collections so that I can try to work out some sort of settlement to pay it off more quickly with less interest and fees? I cannot lose the car, and I'm worried about that. I've heard that they go after newer cars more often than older cars, and this one is nearing 10 years old-

What should I do? And please don't respond with 'you shouldn't have gotten a loan if you couldn't repay it' like I've gotten a lot of times in other situations. Because everyone knows that things change, life changes, financial situations change... I didn't purposely get a loan I couldn't pay back. And I'm not trying to avoid paying it. I just don't know what exactly I should do at this point- any suggestions or advice would be helpful.

Thanks!

[isxrc]

Try visiting Repossessed Cars for free information and advice on car repossession. There are also answers to many frequently asked questions. Hope it helps.