[HopefulMom]

My husband and I lost our jobs a couple months ago and have not made payments on our car. We only have enough in our savings to make rent and food monthtly and it's been very tight. Isn't everybody?

At this point, the car is now charged off and they want me to surrender the car because the legal ball has been rolling.

What can I do? I am about $5000 in past due payments and said I could pay half tomorrow and asked if they could help me in anyway without taking my car. They said I need to surrender the car because it is too late. Is there anything else I could do? I am sooo desperate and need a car to go around because I have 3 small children and not having a vehicle would put us deeper in the hole.

Please advise. I am scared and need guidance.

Please help!

Thanks

[Fr_Chuck]

Ok, first charged off has no issue in this, that is a legal term for accounting, the fact you are not paying is the issue,
You can just not give it to them and make them come and repo it in the middle of the night or something. In fact it is strange they even asked you, normally they just sneak up and take it when you are behind.

Let it go, and go buy a couple thousand dollar car to get around with for now.

Also anyone getting back to work soon?

[progunr]

You must exhaust every possible option, before you give the car back.

Without enough income, to make payments, your options are very few.

How about second jobs, for either or both of you?

When you give the vehicle back, here is what is going to happen, just in case you don't already know.

The vehicle will be inspected, any obvious problems, will probably be repaired, and these costs will be added to your balance as reconditioning fees. Then, they will professionally detail the vehicle to take to auction. Yes, as a repo, it must be sold at auction in most
areas. It must also be flagged as a repossessed vehicle when they run it through the block.

This means it will bring only a fraction of it's value, and will probably leave you with a large balance still owed on a vehicle you no longer get to drive.

I realize you options are limited, just be aware that repossession, voluntary or not, has to be your last option.

[HopefulMom]

Thanks for the quick responses. I have a little hope now but not sure if it will make a difference. I will be able to get help from my father who is willing to pay off the car for me and have me make payments to him. He'll be able to pay it in 3 months when he is back in the country. I should have talked to my parents sooner but didn't want to disappoint them. Now I'm not sure if it's too late.

They said they cannot help me because it's a dead loan? I want a repo to be my last option but they said if I don't surrender the car then they'll put a sheriff's whatever, meaning they'll have them find the car which will add an extra $1800 on the loan again. Should I keep the car until they repo it or surrender it? If I don't have this car, we'll have to walk or use public transportation which is difficult also because everything is far away from where I live.

I told them I would be willing to pay it and they said that was not an option? My husband is working two jobs now and I'm staying home for my young children because now we cannot afford daycare and I want to be the one to raise them anyway.

I don't know if I should just make payments even though they told me it wouldn't matter.

What to do? Please advise... what would you tell your daughter?



They also mentioned that if I surrendered the car and they might be able to offer me a settlement and give back my car, is that true?

[HopefulMom]

Also, does it make a difference if I surrender of wait until they find me to repo the car?

[Fr_Chuck]

The only difference is a little more charges if they do the physcial repo,
Also have you went and talked to the actual lender, not to the collection people but the actual loan agents.

And you need to be careful, unless you get a written agreement, if you did pay them a little, if it is not the full amount, they could still take the car if it is not in writing that they agreed to the payments.

[progunr]

I cannot imagine any lender that would rather have the vehicle back, than to have it paid for.

You need to contact the actual lender, and ask them why they refuse to accept payment.

It wouldn't hurt, to speak to an attorney in your area, most will consult one time with no fee, just to see what they would advise you to do in this situation.

Also, if you ARE speaking to the original lender, ask them what amount of money it would take, for you to bring the account current, and cancel the recovery.

I say hide the vehicle, until you get some better way to resolve this, before they find it and take it from you.

[westnlas]

I am making the assumption that you live in the US. If that is the case, you should consult a bankruptcy attorney immediately.
1- You have no income other than unemployment
2- you have no money or the payments would have been made
3- Your credit is already damaged maybe worse than a bankruptcy would do. Late payments show up for 10 years
4- Letting the car go back to the lender will not satisfy the loan.
5- Bankruptcy may allow you to get a car and cancel or reduce payments on other debt.
6- Bill collectors cannot bother or even contact you once you file
7- Every credit card company will issue you a card afterwards because you cannot file again for 7 years. (Interest rates are high, but see what happens after a "late pay" shows up)
8- It will give you a chance to rebuild where paying off car loan balances for cars you don't have doesn't.


I think there is probably a recovery device located on the vehicle that would be used by the police in recovering it. I don't think you can hide it effectively and transporting it far away in order to hide it may be a crime.
Good luck

[westnlas]

Hey prog. The locater chips cost less than $ 2.00 another $ 15 or so a month for service. My nephew learned this when they repossessed his 2004 Dodge pick-up. They even have locater chips in the casino $100 and up chips here in Las Vegas. Everyone can and most do use them. That's what the vehicle recovery fees are used for, to pay the cops to track the car.

No, I am not making this up as I go. Believe me, unless she's got a real junker, they can and will locate the car.

[progunr]

Hey prog. The locater chips cost less than $ 2.00 another $ 15 or so a month for service. My nephew learned this when they repossessed his 2004 Dodge pick-up. They even have locater chips in the casino $100 and up chips here in Las Vegas. Everyone can and most do use them. That's what the vehicle recovery fees are used for, to pay the cops to track the car.

No, I am not making this up as I go. Believe me, unless she's got a real junker, they can and will locate the car.

I have many years in the recovery industry, and have located and repossessed a very large number of vehicles, working for as many as 14 Lenders at the same time.

Not a single one of them put a locater on their used vehicles.

I'm sure there are rare exceptions to every rule, like your brothers 04 Dodge, sorry about his luck on that deal.

Edited to include the following statement. I do not make a habit of telling people to hide their vehicle from repossession, but this lender,having been offered substantial payment on a loan in default, refused to accept payment. There are state laws that require the lender to allow the borrower to cure the default for a certain period AFTER it has been repossessed, thus allowing the borrower to "redeem" the repossession. For them to say that they CAN'T accept any payment is very underhanded.

[westnlas]

I will say this about the locater chips. Here in Las Vegas, everyone is using them for everything ! The casinos put them in chips and have their own tracking in place of course. Recently a carpenter who was tired of getting his tools ripped off installed a chip in his air compressor motor housing. His truck was stolen with all the tools still in the bed. The cops busted the chop shop by finding the compressor. The cost has gotten so cheap that here on the western side of the country, everyone is using them. Just like with my nephew's truck, it's cheaper, easier and quicker to have it tracked.

I would have told her to total the car, but the insurance company requires that the payments be made and up to date before issuing a check. At least that's what they told me when mine was totaled.

In any case, she should quit fighting this one and buy something she can pay cash for and keep it running until things get better.