Auto Loan Reinstatement??????

Anonymous · ‎01-16-2016

Has anyone on here seen where someone has successfully been able to reinstate and old auto loan???

I bought a car March 2014 three months after I purchased my car I lost my job, I called the creditor and explained the situation and of course they said turn the vehicle over to them. So I verified my address with them and its now 01/16/2016 almost 18 months later and my car is still here. I still drive it and I just recently gotten through my financial problems and have been able to negotiate over 15 baddies off my reports, but the car loan is still showing on there and they have never tried to seize it. It shows as an open auto loan with 17 plus 90 day late's as it reports every month. My idea was to call the lender or send a letter stating that I would send them a lump sum of $2,500 and pay an additional 416.00 a month for 12 months on top of my normal loan payment if they would remove all negative marks, show account current, and being paid as agreed. ANY IDEAS that this may work or have seen this work???? Any example letters I could use to write the lender??? the additional 416.00 a month for 12 months is an estimate of what it would take on top of the 2500 to get the loan structure back on schedule.

crissyanj · ‎01-16-2016

From the repo I had years ago, I was able to reinstate my loan. I had to pay what I owed and bring the loan up to date, plus the repo fees and storage fees, but that was within days of the repo. My cousin recently had a repo and the finance company said she had to pay the car off completely to get it back.

Bankrupt2019 · ‎01-16-2016

@Anonymous wrote:
Has anyone on here seen where someone has successfully been able to reinstate and old auto loan???
I bought a car March 2014 three months after I purchased my car I lost my job, I called the creditor and explained the situation and of course they said turn the vehicle over to them. So I verified my address with them and its now 01/16/2016 almost 18 months later and my car is still here. I still drive it and I just recently gotten through my financial problems and have been able to negotiate over 15 baddies off my reports, but the car loan is still showing on there and they have never tried to seize it. It shows as an open auto loan with 17 plus 90 day late's as it reports every month. My idea was to call the lender or send a letter stating that I would send them a lump sum of $2,500 and pay an additional 416.00 a month for 12 months on top of my normal loan payment if they would remove all negative marks, show account current, and being paid as agreed. ANY IDEAS that this may work or have seen this work???? Any example letters I could use to write the lender??? the additional 416.00 a month for 12 months is an estimate of what it would take on top of the 2500 to get the loan structure back on schedule.

I wouldn't push my luck if I were you. They are fully within their rights to repossess the vehicle at any time. If you were to initiate any contact with the creditor I would be fully ready to pay any balance and late fees in full or expect the vehicle to be repossessed in a hurry. As for asking them for any type of adjustements to their credit reporting, you have ZERO leverage to ask for this and I would say you are highly unlikey to get the results youre looking for.

That being said, If you were to pay in full, at least the lates would finally start to age off and you wont have a reposession on your reports.

Anonymous · ‎01-16-2016

Thanks for the advice!!!! So my leverage that I thought I might have would be they have 11k tied up in this car, in the condition it's in and the mileage on the car it only blue books between 2200- 2700 so if they were to repo it they prolly would get anywhere near 3k for it. The car is 12 years old with 140k miles, and has several issues. So I figured by me offering to pay 2500 to 3000 and making double payments for a year they might would consider since I'm willing to give them what the cars worth up front. I've made contact with them several times and they have never sent someone out to repo it.

StartingOver10 · ‎01-16-2016

@Anonymous wrote:
Thanks for the advice!!!! So my leverage that I thought I might have would be they have 11k tied up in this car, in the condition it's in and the mileage on the car it only blue books between 2200- 2700 so if they were to repo it they prolly would get anywhere near 3k for it. The car is 12 years old with 140k miles, and has several issues. So I figured by me offering to pay 2500 to 3000 and making double payments for a year they might would consider since I'm willing to give them what the cars worth up front. I've made contact with them several times and they have never sent someone out to repo it.

You are not looking at it like a creditor looks at it.

Your repo (if they came to get it) is not where the money is, it is in a money judgement against you. If they get a judgment against you they make $$ off of the repo + the judgment. The judgment is good for 10 or 20 years and can be renewed for another 10 or 20 years depending upon your states statutes. In addition to that, the judgment accrues interest the entire time. So the value is not in the vehicle at all, it is in the judgment which can be bought or sold over time.

So have you checked the public records under your name to see if they have filed a judgment against you? It may or may not be on your credit report. You need to check the public records of your county. It's very possible that they have a judgment against you and you don't even know about it. It is called 'sewer service' where the creditor swears you were served and a default judgment is issued and you have no idea of its existance.

Anonymous · ‎01-16-2016

Okay with all that being said, what should I do? What is my best option here? I'm trying to get back on the right track and this is my only thing holding me back. I honestly was hoping it would have been a charge off by now.