Question about a Repo that turns 7 years old this month...

[Flob]

When my husband and I were 19, we bought a car at a buy here pay here for $2700. We paid $700 down to finance the car for $303/month for 7 months. We were very, young (and stupid) and unfortunately the car was reposessed before we were able to make the first payment. We were one week late and the car was seized in the middle of the night. The creditors did allow us to get our things, but they told us we would have to pay $1000 dollars to get the car back. Back then, probably didn't even have $100 dollars  at any rate, the car was gone, life was hard, but we moved on and life got better.

We never received a notice of sale or any further documentation from the place. Now, seven years later, we are finally on our way to building a strong credit history and plan on buying a house soon. We went to the bank this past week to see if we were elligible for any loans, and they said we would be, BUT we have to take care of the reposession that is still being reported on our credit report.

Now, my first question is: They have the amount that we owe listed for $2400 dollars. If they sold the car afterwards, shouldn't the amount be much lower, and not higher than what we originally financed?

Question number 2: Even if we did owe a deficiency balance, shouldn't the account be removed from our report soon per the seven year rule?

Keep in mind that I'm not opposed to paying the account off, I only wonder if that wouldn't be a better route for now in order to qualify for a home loan. Honestly, this has all been so confusing!

Thanks so much for your help, guys. 

[StartingOver10]

Is this showing up as a judgment or just a repo?

[pizzadude]

Moving to rebuilding credit forum

[guiness56]

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@Flob wrote:

When my husband and I were 19, we bought a car at a buy here pay here for $2700. We paid $700 down to finance the car for $303/month for 7 months. We were very, young (and stupid) and unfortunately the car was reposessed before we were able to make the first payment. We were one week late and the car was seized in the middle of the night. The creditors did allow us to get our things, but they told us we would have to pay $1000 dollars to get the car back. Back then, probably didn't even have $100 dollars  at any rate, the car was gone, life was hard, but we moved on and life got better.

We never received a notice of sale or any further documentation from the place. Now, seven years later, we are finally on our way to building a strong credit history and plan on buying a house soon. We went to the bank this past week to see if we were elligible for any loans, and they said we would be, BUT we have to take care of the reposession that is still being reported on our credit report.

Now, my first question is: They have the amount that we owe listed for $2400 dollars. If they sold the car afterwards, shouldn't the amount be much lower, and not higher than what we originally financed?

Question number 2: Even if we did owe a deficiency balance, shouldn't the account be removed from our report soon per the seven year rule?

Keep in mind that I'm not opposed to paying the account off, I only wonder if that wouldn't be a better route for now in order to qualify for a home loan. Honestly, this has all been so confusing!

Thanks so much for your help, guys. 

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When did you miss the payment that made them repo the car?

It is possible for you to owe this much.  They are adding fees and interest until paid.  7 or almost 7 years could add up.

[Shogun]

As guiness56 has put, we need more info.  What does it show on your CR?  What's the DoFD?

[Flob]

Sorry for the slow reply guys, but thanks so much for taking the time to respond. So a look at the report from transunion says that in October of '06, we were ok and made a payment, but this is not correct. We bought the car in September of 06, with our first payment due on 10/1/06. I specifically remember that we were moving that day and were not able to make it to the site (it was a buy here, pay here) to pay and they came to reposess it that night while we were sleeping.

Now, I understand that they were able to reposess at anytime, but not even a one day grace period? A little insane if you ask me. That was the only car we had and my husband lost his job that day due to the fact that he was unable to go to work. This was a TERRIBLE experience for us as we were just getting on our feet. We were soon homeless with a baby because of this. Not only did we lose our entire savings of 700 to put down on the car a month earlier, but to find out that they are still reporting this as a balance owed is extremely frustrating now that we are finally able to buy a house. I understand the idea of fees, but if this repo were handled properly, we would have received a notice of sale at some point, and we never did. Does this mean that they kept the car?

 The first month of deliquency reported was November, 2006. Funny that in December of 2006, it shows that we paid on time again. The car is not marked on the report as a repo until January of 2007. I'm guess this means that the car won't fall off of our report until November + 180 days? That would put us at May of next year??  

Would a credit rescoring company be able to speed up this process? Just took a look at the report and apparently the bank that gave us a quote on a mortgage authorized Credit Plus to pull our credit... They are a credit rescoring company, right?

Any and all help is much appreciated guys. I hope I have put enough info down. I will also say that TransUnion predicted this debt would be removed in 9/2013.

[Asailorshort]

It will be removed from TU this month then. It should be the same for EX & EQ but if you have reports from them you can check. It'll list either a DOFD or the date it will come off.
You could,track the deletion of this repo from TU on creditkarma.com. Ignore their scores & even some of their advice, but they're pretty good for tracking whats on your credit report. It's free & you can get a weekly update. Creditsesame (EQ??) & quizzle (EX) are also free but CS only updates once per month & quizzle is only once every 6 months.

[Flob]

wow, i knew about credit karma, but not the other two... thanks! 

[guiness56]

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@Flob wrote:

Sorry for the slow reply guys, but thanks so much for taking the time to respond. So a look at the report from transunion says that in October of '06, we were ok and made a payment, but this is not correct. We bought the car in September of 06, with our first payment due on 10/1/06. I specifically remember that we were moving that day and were not able to make it to the site (it was a buy here, pay here) to pay and they came to reposess it that night while we were sleeping.

Now, I understand that they were able to reposess at anytime, but not even a one day grace period? A little insane if you ask me. That was the only car we had and my husband lost his job that day due to the fact that he was unable to go to work. This was a TERRIBLE experience for us as we were just getting on our feet. We were soon homeless with a baby because of this. Not only did we lose our entire savings of 700 to put down on the car a month earlier, but to find out that they are still reporting this as a balance owed is extremely frustrating now that we are finally able to buy a house. I understand the idea of fees, but if this repo were handled properly, we would have received a notice of sale at some point, and we never did. Does this mean that they kept the car?

 The first month of deliquency reported was November, 2006. Funny that in December of 2006, it shows that we paid on time again. The car is not marked on the report as a repo until January of 2007. I'm guess this means that the car won't fall off of our report until November + 180 days? That would put us at May of next year??  

Would a credit rescoring company be able to speed up this process? Just took a look at the report and apparently the bank that gave us a quote on a mortgage authorized Credit Plus to pull our credit... They are a credit rescoring company, right?

Any and all help is much appreciated guys. I hope I have put enough info down. I will also say that TransUnion predicted this debt would be removed in 9/2013.

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If TU is saying it will be removed 9/2013 go by that.  If it isn't removed by 1 Oct call TU and let them know.

You may also be able to contact them now and see if they would remove it early.