How to remove a Carmax Charge Off/Repossession

[matrix23]

Hi,

Posting this for a friend who has a charge off/repossession.

Carmax Auto Finance

30 day late Oct 2008

Repossessed Nov 2008

Charge Off Mar 2013

Joint Account with her ex-husband who took the car from her and then didn't pay it off and let it got repossessed.  Obviously she is still responsible for it, however what is the best course of action?  Should she DV it and see how much is actually owed then perhaps work a PFD.  If it is anything that is too costly, she could probably not afford it (upwards of $500). 

She really wants a new car and I am afraid she will not get a loan until this drops off at the end of 2015.  Could she still get a loan?  She has loan currently that started in 2007 and will be finished in 3 months.  However, that loan is also joint with her ex--husband and he still has that car.  Also, has a Cap One Secured Credit Card with $300 CLI if that helps.

[matrix23]

Also this past the SOL 4 years in her state.  So if this was sold to a CA, that would not restart? 

[guiness56]

How could it be repossessed in 2008 and not charged of until 2013?  That is impossible.

[Shogun]

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@guiness56 wrote:

How could it be repossessed in 2008 and not charged of until 2013?  That is impossible.

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I agree.  The DOFD would begin with the 30 day late.  The  CO would have followed with the repo.

[RobertEG]

A repo is the taking back of the asset securing the debt.  A charge-off is an accounting decision on how to deal with unpaid debt that has become uncollectible.

Obviously, the final indebetness of the consumer is then based on the difference between whatever was owed and what they received as offset upon sale of the property.

So, yes, they should provide an accounting of the net debt still owed.

However, I dont see the impossibility of taking a charge-off at a later time, if ever.

They could have still continued to include the unpaid net debt as a receivable asset, and still considered the net to be collectible.

They could then, at a later point in time, decide to move the remaining debt over to an uncollectible bad debt in their accounting ledger.

When they decide to take that accounting measure is their decision.

[Shogun]

But the DOFD would still be set with the 30 day late.  

[matrix23]

Sorry for replying late.  But I a bit confused as looking at her Experian report is shows as paid/closed, is this due to it being a charge-off?  This is how it shows in her Experian report.  This link is an image of her CR from Experian http://postimg.org/image/h8r2kszv3/

[matrix23]

Should I DV to see how much she owes.  She says she paid probably half the 11K down and made a year of payments, so after Repo costs and such perhaps a the debt should be under 2K at least, best case scenario 1K.

[guiness56]

It says it was paid Nov 25, 2008.  The only thing I can think of is they sold it at auction and got enough to pay it off.

What concerns me is the 5 years between a repo and a CO.  While one comes before the other there is no way it could be 5 years.  As far as I know Federal regulations require creditors to charge off installment loans after 120 days, not 5 years.

What state did this happen in?

[guiness56]

With interest for 4 years it will be much more than that.