Repossessed Car Auctions

Question by secretseriousfun: My car was repossessed! Does it pay to reinstate the loan?
I financed a 2001 Mustang convertible. Five year loan. The car was priced at $ 13,000, and the loan total was $ 33,000. Yes – a really cruddy, upsidedown loan.

I’ve made 40 payments (more than $ 20 grand), and there is still $ 10,695 outstanding on the note.

Last week, the car was repossessed. For reasons that I won’t bore you with, I can get the loan reinstated if I pay the payments I missed…. about $ 1,000 total, plus of course horrid fees for towing and storage.

My question is…. is this worth it? I’ll be paying the back payments that I owe, plus fees, and will STILL owe $ 10,695 on a car that now only has a Blue Book value of $ 7,200 or so. And has 82,000 miles on it.

My instincts are to let them auction it and make arrangements to pay the difference between what they get at auction and the $ 10,695 outstanding on the loan. My credit is ruined anyway, soooo…. am I better off to do this, rather than pay the money to reinstate?

THANKS!!!!!!!!!!!!!!

Best answer:

Answer by spifiman1
If the vehicle has not already been reported as a repo? You might have a chance to reinstate the loan and trade it in on something else. You are only $ 3,500.00 upside down and believe it or not that is not a lot any more.

If you do reinstate the loan insist that they not report it as a reclaimed repossession because this will look almost as bad as a straight repo and will show on your credit for 7-years.

If you let it go back, you are going to end up with your credit being ruined and owing them several thousand dollars by the time they sell it for a lot less than it’s worth and then add all of the fees involved.

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realestatemarketingthisweek.com – Real Estate Marketing – The pitfall of forcing your bank to rescind your loan for lending violations when in foreclosure – With Michael J Barnes and Dan Havey of Real Estate Marketing This Week Part 8 – I have a question on that, it is my understanding and I could be wrong, but they don’t need a copy of the note, they need the original note. You are correct. Your attorney of course will get a copy, because they are not going to send them the original. Items that your attorney is going to ask for, and I forget the number, I think its 47 different items that the attorney could ask for. Heres one. I’ve been in the industry for 20 years and I just heard this term a couple months ago, it’s known as an alonge. What the heck is an alonge? Well apparently it’s one of the documents that has to be in the file. While essentially the whole purpose of this is to catch the bank, the lender having messed up your loan somewhere along the way. Because if it is true that they violated some kind of Federal Law in the past when they gave you the loan or are in violation of the loan now, you can then take them to court. And you can sue them. You can have your loan rescinded. Which basically means it comes off your credit report. This loan never happened. As good as that sounds that may not be the best thing for the home owner. I want to back up just a little tiny bit, you mentioned the alonge, there’s more to the alonge then it sounds like. The bank needs to …
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When purchasing a car, truck, or vehicle on credit, the creditor providing the loan retains important rights to that auto until the last payment is made. Inability to make timely payments allows your creditor the right to repossess your vehicle. They will provide you with notification that your payment is due, and if that is ignored they will send you a repossession demand that you turn the car over to their repo contractor. Once repossessed, the creditor has the option to keep the car or resell it in a private or public auction. If the vehicle is sold publicly you will be notified the date of the auction and be allowed to participate in the bidding. If the vehicle is sold privately you are entitled to be notified of the sale date and have the option to buy back the vehicle. There are some lenders that will help you to buy back the vehicle, but with the credit crunch of 2008 things have tightened up dramatically. Instead of keep the car you have, which may have a higher payment then you can afford, you could start looking for a lender that will help you get into a new or used vehicle with payments that fit within the budget, it’s a repo car loan Obtaining a loan after having car repossession is difficult, but not impossible. A Repo on your credit will last for 7 years. The most important thing to do is to rebuild your credit therefore, if you do not need the car immediately for commuting it is best to wait awhile before trying to finance another car. If you have a balance with your previous lender on the repossessed car it is advised to pay that balance off as quickly as possible. Pay off all debts as quickly as possible so that your damaged credit will be on its way to repair. A subprime lender is a lender who deals specifically in loans for those who have bad or damaged credit. These lenders will offer loans at inflated interest rates and often there are fees associated with these loans. A loan for car repossession is a higher risk loan to the lender thus accounting for the increased rates. Obtaining a loan though a car dealership is often a good option for someone with car repossession. Smaller dealerships can offer lower rates to those with damaged credit. Comparing various lenders offers will ensure the best rates possibly for a loan after car repossession. Applying online can streamline the process.

Oftentimes, an online application will be sent to a lender to review your credit score, upon finding a repo on your credit you will be directed to a dealership that has indirect lenders that focus on helping customers that have bad credit, bankruptcy, repossessions, or no credit. You could choose a new or used vehicle from their wide selection of vehicles on their lot or a vehicle on another lot owned by the dealer group. The process can take 24 hours to a week depending on how quickly they get get you approved and into a car that you like. Get a repo car loan today.

Preventing a repo is the best way to manage your personal finances particularly because a repo is going to stay put on your credit records for as long as 10 years. But, if despite all your efforts, when the inevitable happens, you must find a way to keep yourself mobile. A repo car loan is the best way to put you back on the road.

Before you set out shopping for a repo car loan, it is essential to understand the impact of a repo. The lender who repossesses the car will put up the car for auction and the sale proceeds are more likely to be well below the fair market value of your car. The realization from the auction will be adjusted against what you owe the lender and you would still be responsible for the remainder. In addition to this, you would also be required to cough up additional money towards repo fees, legal charges, towing charges and so on.

Instead of allowing repossession, you can sell the car before the situation goes really out of control and use the proceeds to close the loan. It is likely that you fall short of the required amount to close the loan, but the lender would be more than willing to accommodate you by granting additional time to pay up the remainder.

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The best way to get a repo car loan is to allow a cooling period after the repo has happened. This can be anywhere between 6 months to one year. During this period, try as much as you can to clear up your debt and improve your credit score. Some lenders may be willing to provide you a repo car loan even before the credit scores can improve, but the finance costs and interest are bound to be much higher. A significant portion of your monthly payments will go towards these charges and correspondingly the loan will run over several months.

When you are ready to consider a repo car loan, do an extensive research on the internet to find a lender that you can comfortably work with. Understand that the big brothers in the lending business are unlikely to be helpful to you. Identify the smaller and newer entrants into the business and it is more likely that they offer you best terms on your repo car loan.

When none of these measures work for you and you need the car the very next day after repo, the best measure is to look for the same-day car loan. With this type of lender, your credit score is not important but your income and the ability to meet the monthly payments will impact the repo car loan. It is important that you be in a position to provide proof of your income and proof of a checking/savings account. In most cases, you will get approved for the repo car loan on the same day that you make an application. Undoubtedly this is a pricey option but the advantage is that you will start repairing your credit through unfailing monthly payments. At the end of six months or one year after the loan, you can also consider refinancing your loan through another lender.

Question by Zzz L: My car was repossessed, will be sold at auction. Will GAP cover the difference I owed on the loan? Thanks.?
I couldn’t handle the payments and the car was repossessed last week. It will be sold at an auction. I am sure it will be sold for a price way under what I still owe on the loan. I have GAP insurance on the vehicle. Will GAP cover the difference I owe?

Best answer:

Answer by veesmom
No. GAP insurance covers the difference between what your insurance company pays and what you owe on the loan when a car is totaled. Sorry

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My father-in-law passed leaving the loan(debt) of a car. The car is solely in his name. She does not need or want the car, Is she responsible for the car? Plus the car is too expensive for her limited income. What should we do with the car?

We have inquired about turning the car as a trade in but the value is below the owed amt so she would be forced to cover the difference. Ford offered to auction the car and told my M-I-L that she would be responsible for the difference between the amount owed and the auction price. Our only other option would for the bank to repo the car upon non-payment – 23 payments remaining.

There is no estate and the is little to no equity in their house and the house is on the market to be sold. They had little savings, 2 pensions and now she will have his social security.

my car was repo’d last yr. & sold @ an auction. the finance company contacted me regarding payment options and I didn’t follow through. is it possible to get my acct. out of collections at this point?