Information on Auto Loans and Repossession Advice - The Bills.com Blog

i am wanting to cosolidate all my medical bills as i have over 6,000 and i have no medical insurance so this is a big burden on my husband and i can i consolidate these into to one payment a month

Carol, there are different ways to consolidate bills, including debt consolidation loan, credit counseling, and debt settlement. Every program has limits on how much total qualified debt is required to get enrolled. You do not state as to whether you are current or past due on these bills. Therefore, if your credit is decent, you can try to apply for a personal unsecured loan. Most banks issue these types of loans. I would recommend that you check your credit report and score to see where you stand as far as your credit is concerned. If you don’t qualify for a loan, then you should call around to inquire about credit counseling or debt settlement programs. Most debt settlement firms, that I have come across, require that you owe $7500 or more. There might be firms who would be willing to work with the amount of debt you owe. Also try www.prosper.com.

I have a SUV that I bought last September. I had bad credit and pay 21% intrest on it. My fiance lost his job and we can not afford it. How can we get out of this without destroying our credit. Who could help us lower the payment or get it refinanced?? Please help us!!

That is a tough situation you have got yourself into. Unless you have excellent credit, it is unlikely that you will be able to refinance at a lower rate. Unless you sell the vehicle, it will be difficult to find a solution to this without effecting your credit negatively.

I have a car loan that ive been paying off for 3 years, and the principle is still $9,000, the car is worth $1,500, if I just let them repo it and wait a couple months what are the chances of them accepting $5,000?

The chances are pretty good, but no one can guarantee what will happen. The deficiency balance would be $7500 and $5000 is 66% of the balance, and it is normal for deficiency balances to settle for less than half of what is owed... so you have a chance. Good luck.

My vehicle was just repossessed with a payoff balance of over $22,000. I'm self employed with no work currently available and have been living on the good graces of my fiance and mother. My mother put her condo in my and my brothers names a couple years back so we might be use it for collateral in times of trouble. Is there a possibility to refinance my vehicle, or obtain a home equity loan or second mortgage to get it back? The condo is paid off but my credit is bad. Should I just let this go and take my losses?

If it has been repossessed already, then it is going to be very difficult to get it back, unless you either pay all the arrears (including repo and storage fee etc.) or pay the entire amount outstanding. You lender will now sell the car in an auction and apply the proceeds to your loan. If there is any balance left, you will still be responsible for it. Your best course of action will be to just get this matter resolved and move on as this repossesion will have caused your credit to go bad, and you don't want to even apply for a mortgage with bad credit as your interest rates will be extremely high.

You sound like you know what your talking about, I had a car repossesed aug. 06. I bought a new car through the same comapany (GMAC) in july 07. and also paid off another car i had with the same company I have 13 other PERFECT accounts on my credit history. And have not been late or missed a payment on anything in the last 9 years. My question is : Can I refinance my house from a 6.25% to what is currently around 4.9 for a 15 fixed w/o paying for that car that was repossesed? I bought my first home in sept.08. and was wanting to refinance in march I have not been late on my morgage or anything else for that matter. I have 8k in credit cards with a 0.00 balance. and my score is a 695. my debt to income is low because I make good money and do not owe anything. Please advise thank you

I would certainly recommend applying for your refinance loan. Rates are so low that it is a GREAT time to try to refi and lock in a low rate. As far as qualifying for your loan, it will depend on your loan to value, debt to income, and your credit score. Also, in this crazy market the best candidates for loans are people who qualify for "conforming loans" or FHA loans which can be acquired and secured by the Federal Government (Fannie Mae & Freddi Mac). If you have decent credit and your loan balance is below $417k (or higher in some regions) then you'd have a great change to lower your rate. Apply here and see what happens: https://www.bills.com/homeloan/mortgage_refinance/ Good luck Frank.

I agree with you however my question was how likely is it when i go to refi are they going to make me pay for the 6500.00 repoed car loan. Or since mt credit is so high regardless will they not care if i settle that debt for 2006. I have heard when you go to refi any bad debts on your credit they want paid out of the equity. how true is that.

That would really depend on your lender. Although we have heard about lenders putting these conditions before funding a loan, its not a given, it might or might not happen.

Sorry to bother you with this question, but I'm in a jam- In California, should concerned about getting sued for the deficiency balance? I owe $12K on a 2007 Nissan Versa that now needs $5K engine repair not covered by warranty, according Dealer and Nissan Co. If I can't cough up the $$ for repair, I'm thinking I'd surrender the vehicle.

Yes, if the value of the vehicle (when sold) is not enough to cover the balance on the loan, then you will still owe them the deficiency balance. The lender has the right to pursue collections on this balance and there might be possibility that they will sue you. it is a call that only they can take, and i cannot make a prediction as to whether they might or might not.

I got divorced and my name is on my ex husbandstruck which he didnt pay for and it is now repossed. I cannot afford to pay for it. I got left with the house, boat and all of our credit cards. We owe 28000 on the truck! I am really scared and don't know what to expect. Any suggestions orcomments? Right now my credit is good (715). Can they garnish wages?

Heather--unfortunately, the auto lender can, and likely will, pursue you for payment of this loan. I strongly encourage you to consult with your bankruptcy attorney, as you may be able to file a petition with the bankruptcy court requesting that the court hold your ex-husband in contempt for failing to pay the debt, if he was ordered to do so in your divorce decree. As for what you can do to protect yourself, you may want to also discuss bankruptcy with your attorney, as that may be the only way to discharge your liability for this and your other debts; many people file bankruptcy after divorce for the same reason. Depending on your state, the creditor may be able to garnish your wages if it sues you and obtains a judgment; however, filing for bankruptcy protection should prevent such action against you. I wish you the best of luck!

I recently surrendered my boat (still owe $68k). I had big plans to upgrade it and not enough money. The Engine and other small items where off the boat at the time of the surrender. Later in the week I tried to make arrangements with the bank and repossession company to give all the items pertaining to the boat back. The repo company had no means to take the items or wanted to. The bank insisted they had to be returned to them. What if any consequences are instore if the bank doesnt get the items back, beside a deficiency suit. Also in my defense had a law enforcement officer standby while i made an attempt to drop off the parts.

I'm surprised the bank wanted you to bring the engine and other items to them. I would have expected the bank to want the engine and other parts to be brought to wherever the boat is stored. The boat is about to be auctioned, and you will be required to pay any deficiency balance. An engine-less boat is not going to fetch much at auction, and you having an engine without a boat does you little good. This is a big mess you need to sort out. Get a three-way telephone call with the repossession company, the bank officer handling your loan, and you to work out an arrangement for reuniting the engine with the boat. Then, you need to develop a strategy for handling the deficiency balance. The deficiency balance is an unsecured debt, and is like credit card or medical debt. See What Are My Debt Consolidation Options? and collections advice to understand your rights in the collections process.