cancel
Showing results for 
Search instead for 
Did you mean: 

Eligibility for auto title after charge off

Established Member

Eligibility for auto title after charge off

Looking for some info on this here prior to moving forward with any next steps I take. Not looking for any illegal or loophole way to screw my previous financing obligation, just honest info.

 

Back in 2001 I purchased a vehicle under Cap One Auto. After about two years of current payments I hit a block in my finances after a job loss. Needless to say I quickly lost the ability to continue paying on the vehicle. Before I knew it, I was in over my head in debt on the vehicle. The vehicle was never reposessed but my creit was obviously impacted with a charge off status for the loan. The car has never been in hiding and I have never attempted to weasel my way out of any of it. The vehicle is 14 years old now and the charge off was recently dropped from my credit report 6-12 months back. I am in a much better place now, financially speaking, and much more responsible with my finances. I have no intent on keeping the vehicle for the rest of my life but I am not sure what options I have as far as whether or not I would even be able to obtain the title for the vehicle. As far as I can remember, I believe the remaining balance was about 6-8k. I live in California and would like to move forward from this vehicle but I would hate to have the charge off or any negative reporting reappear from trying to inquire on information or even title for the vehicle. While I would hate to have to pay the 6-8k on this, I completely understand my obligation to pay, but at the same time if I am able to settle for a lesser amount or other option, I would gladly do so. My main concern is with having any negative or chargeoff reporting reappear on my credit.

 

Message 1 of 16
15 REPLIES
Contributor

Re: Eligibility for auto title after charge off

This sounds sort of like you need some legalese to speak with but here's my 2 pennies. I'd contact the motor vehicles and request that your title be released as there is no loan or repossession for the vehicle. Also I'd contact Cap One and request that  they release your title. What's the worst that could happen - they charge off a vehicle already CO'd?? Or maybe they repo the 14yr old vehicle? OR maybe that force you to pay the 6-8K that you say you're ready to pay. Either way you aren't losing because this headache will be settled.

MyFako scores EX 594, EQ 553, TU 589 as of 10 Jun 11
myFICO EQ 614 TU 599 EX 644
Goal 700 by March 30 2015
Message 2 of 16
Established Member

Re: Eligibility for auto title after charge off

Thanks for the info. My main concern is not the payment itself but rather having the charge off reappear and remain on my record for another 7-10 years (however long a co will remain on the credit report). While I would love to rid myself of the headache and vehicle, I would like to be able to purchase a new vehicle without having the charge off show up. Worried if I try to make any sort of inquiry on the title or vehicle through dmv or Capital One, I end up opening the charge off again.

Message 3 of 16
Valued Contributor

Re: Eligibility for auto title after charge off

It can't be reinserted since its past the 7.5 years since DOFD. If reinserted it would be a violation andyou would have legal recourse. Worse that could happen is they try to come and take the car now.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 4 of 16
Valued Contributor

Re: Eligibility for auto title after charge off

Is this a vehicle you want to keep?  If you want to keep it and have the title I would think Capital One would want something in return but this is a strange situation so who knows.  I would know the answer to that question before I do anything.  You could check with your DMV and find out if their is still a lien on the title, if not situation resolved.  If so I would probably call Capital One and ask them what they want to do as it is legally their property even if they have written off the debt and it is passed the time for credit reporting.  If they want something in return for giving you a clear title then you can make the call or give them the vehicle back.  

 

Let us know what you decide to do and how it comes out.  Really interesting situation. 

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Message 5 of 16
Established Contributor

Re: Eligibility for auto title after charge off


user_2000 wrote:

Looking for some info on this here prior to moving forward with any next steps I take. Not looking for any illegal or loophole way to screw my previous financing obligation, just honest info.

 

Back in 2001 I purchased a vehicle under Cap One Auto. After about two years of current payments I hit a block in my finances after a job loss. Needless to say I quickly lost the ability to continue paying on the vehicle. Before I knew it, I was in over my head in debt on the vehicle. The vehicle was never reposessed but my creit was obviously impacted with a charge off status for the loan. The car has never been in hiding and I have never attempted to weasel my way out of any of it. The vehicle is 14 years old now and the charge off was recently dropped from my credit report 6-12 months back. I am in a much better place now, financially speaking, and much more responsible with my finances. I have no intent on keeping the vehicle for the rest of my life but I am not sure what options I have as far as whether or not I would even be able to obtain the title for the vehicle. As far as I can remember, I believe the remaining balance was about 6-8k. I live in California and would like to move forward from this vehicle but I would hate to have the charge off or any negative reporting reappear from trying to inquire on information or even title for the vehicle. While I would hate to have to pay the 6-8k on this, I completely understand my obligation to pay, but at the same time if I am able to settle for a lesser amount or other option, I would gladly do so. My main concern is with having any negative or chargeoff reporting reappear on my credit.

 


Your first step is to contact CA DMV as to the status of the title. Even though the loan is over 14 years old and CAP ONE has charged off the loan, it's a safe bet it's still recorded on your title. Chances are also that if you or CAP ONE are no longer in possession of the title, you're going to need a lien release before CA DMV will let you apply for a duplicate. They will advise you as to what can be done to have the lien removed because of age, but again chances are you're going to have to contact CAP ONE if not directly, through certified mail.  I can't give any advice on how contacting CAP ONE would impact your credit history or whether it may restart the SOL clock, but IMHO sooner or later you're going to have to talk to them.      Hoping you have positive results.

Message 6 of 16
Valued Contributor

Re: Eligibility for auto title after charge off

Or you can always just have the car scrapped out without a title and get $300-500 if it's done for Smiley Happy
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 7 of 16
Established Contributor

Re: Eligibility for auto title after charge off


cartwrna wrote:
Or you can always just have the car scrapped out without a title and get $300-500 if it's done for Smiley Happy

Here lies another potential problem. Titles actually go with the frame of the car.  You can strip a car for parts but most (not all) junkyards will require a title to scrap the whole vehicle. At least any of the junkyards we've sold scrap cars to require them.  Smiley Happy

Message 8 of 16
Valued Contributor

Re: Eligibility for auto title after charge off

My local ones will take them without a title, I'm in Iowa. They don't sell the vehicle as parts, just take it to the crusher. They may salvage some parts but I'm not 100% sure.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 9 of 16
Established Member

Re: Eligibility for auto title after charge off

In CA, is the SOL clock something that could be reopened by inquiring on a vehicle title or release of title from Capital One? As mentioned earlier, the CO recently fell off my report after the 7 year mark was up, the vehicle was never reposessed, and the vehicle registration currently shows the lienholder as Capital One. As far as options, I am hoping to get as much info as I can now before I move forward with any contacts and put myself in a position where I may not know the best course of action or reaction to what may come up. I am not even sure how I would start a conversation with Capital One about the release of a title if the lien is still showing them as the title holder.

Message 10 of 16