Husband laid off of work.........car repo.?

Question

My husband has been laid off of work. He got a job shortly after, but not making nearly enough. we are a couple months behind on one of our car payments. If we could, we would sell our car but we owe 8000 more than its worth. We have been talking about voluntarily getting it repossessed. It's something we really do not want to do, but I don't know what else to do. The bank has been working with us on payments, but right now is a really bad time and we can't keep up. What would happen if we voluntarily get it repo'd?

Answer 1

>> What would happen if we voluntarily get it repo'd?

Your credit will be in the toilet.  A repo is a repo.

Find a way out of it.

good luck...

Answer 2

Repossessing, whether voluntary or involuntary will still drag down your credit rating and cause more financial problems.  Can a friend or relative help you with a loan?

Answer 3

Repossession would put a black mark on your credit rating, and make it a lot harder to get credit in the future. You would also still be liable for the balance of debt when the car is sold on. You should continue to try to work through it with the bank.

Answer 4

You could take it up to the bank and give them the keys.Tell them that your surrendering your vehicle because you can't make the note.That will safe them the repo money.What there will do is sale the car for what they can get for it ,then they will say that you have to pay the remainding balance of the loan .If you owe 8000, and they sale it for 5000. you will need to pay the differents  which is 3000. By paying the differents you stay in good standings with them ,but if your not worried about that then say the h**l with the remainding balance.They might try to scare you , but not much they can do .

Answer 5

Handyman is partially (if not gramatically) correct.

When your car is reposessed, whether voluntary or involuntary, the bank will sell the car at auction.  Then you are still responsible for the difference between auction price and the balance of the loan.

So if the loan balance is $10,000 and it sells for $4,000 - you still owe $6000.  Plus, you will be responsible for repo fees (charged whether voluntary or not), storage, auction and tow fees.

The bank will send you to collection, and you will have to pay this - and you wont even have the car to show for it.

Add to that, this is reported to all the credit agencies as a repo.  There is no 'attaboy' credit for handing it back instead of making them hunt for it.  The repo stays on your credit for a minimum of 7 yrs.  You will not be able to get favorable financing on anything for a long time.  Any credit cards you have may likely adjust to the maximum allowed interest.

Lastly, that debt can be sold to a collection agency.  They will endeavor to collect, and may sell it to another collector.  This is a common practice - the selling of 'bad debt'.  That seven-year clock restarts every time the debt is sold.  Bad debt stays with you for 7 yrs "after the last action".  What this means is that, if you make ONE payment 5 years from now, that payment is the "last action" - so the debt will be there 7 yrs more - for a total of 12 yrs.

Do whatever you can.  Start an ebay business, get a paper route, carpool, stop pizza night every week - anything to save money.  Cause a repo will be one of the worst possible moves you can make.