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Strict forclosure on my car

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Brandon1972
Valued Member

Re: Strict forclosure on my car

And if the creditor does not respond......then what? This is a thorn in my side.
Message 11 of 19
RobertEG
Legendary Contributor

Re: Strict forclosure on my car

They have a statutory requirement to do so.  That is why you want to file a formal direct dispute.

They must complete their investigation in 30 days, and send their notice of results of their investigation to you witnin 5 business days thereafter.

 

If they fail to do so, you have solid basis for a formal complaint to the CFPB, who has authority over compliance with the FCRA, and they will have to answer to them.

 

Being a corner-lot creditor, I doubt they have the means or knowledge to offer any substantive defense, and are likely to bail simply upon receipt of the direct dispute by deleting their entire account.

Message 12 of 19
Brandon1972
Valued Member

Re: Strict forclosure on my car


@RobertEG wrote:

 

Being a corner-lot creditor, I doubt they have the means or knowledge to offer any substantive defense, and are likely to bail simply upon receipt of the direct dispute by deleting their entire account.


LOL...probably so.  Thanks for all the good info my friend.

 

Message 13 of 19
Brandon1972
Valued Member

Re: Strict forclosure on my car

Well....after contacting the creditor in attempt to get some documentation about the validity of this debt, it is without a doubt.....valid. And it also appears this debt will also prevent us from buying a home in the next year. The balance on the car was approx. $10,000 when my ex gave it back. They sold it for $3500 and now we both owe $6888. My Fico scores are as follows: EX 631, EQ 597 and TU 657. It may not be showing as a repo, collection or some other derog but it's nevertheless.....there!! Two years after the car was given back, this debt is showing up my reports. Suggestions......anyone at all please???? My wife and I will need to do some work just to get an apartment let alone a home. You can't very well dispute valid info. I've called these people once before and got nowhere. I wonder if anything's going to happen with this call made today. I'm very agitated!!!
Message 14 of 19
RobertEG
Legendary Contributor

Re: Strict forclosure on my car

All I can suggest is an attempt to negotiate a settlement with them in exchange for deletion of their reporting.

They may care much more about some $$ in their pockets than preserving their credit reporting.

Message 15 of 19
Brandon1972
Valued Member

Re: Strict forclosure on my car

Guess I'll try to low ball them at $1000 and see it they'll take it. We're already strapped for funds trying to pay other collections. That's about all I can do.
Message 16 of 19
NotTellinYou
New Contributor

Re: Strict forclosure on my car

The issue for you will be the age.  If this was a 5-6 year old debt you would have more leverage with them as the debt would be dropping off soon.  In your case you have 5 more years of this so you ability to deal is less.  Go ahread and try to make a PFD offer and see where it gets you.  

 

After years of rebuilding my credit I did a VA loan through VUHL and can say for sure this will not get by underwriting...no way no how.  You need to get it deleted completely or pay, or wait and keep saving.

One thing you may want to do at a point in the future is dispute the account as a repo. What I mean is today the account is not showing as a negative so it will never drop off your CR.  The time will come when, if you don't settle, you are going to want this to show as a negative so the CRA will delete at the 7 year mark. 

 

I really don't think you're in a good position to buy a house.  I would rent a nice and VERY affordable home/apt and start saving.

 

Good luck!

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Message 17 of 19
Brandon1972
Valued Member

Re: Strict forclosure on my car


@NotTellinYou wrote:

The issue for you will be the age.  If this was a 5-6 year old debt you would have more leverage with them as the debt would be dropping off soon.  In your case you have 5 more years of this so you ability to deal is less.  Go ahread and try to make a PFD offer and see where it gets you.  

 

After years of rebuilding my credit I did a VA loan through VUHL and can say for sure this will not get by underwriting...no way no how.  You need to get it deleted completely or pay, or wait and keep saving.

One thing you may want to do at a point in the future is dispute the account as a repo. What I mean is today the account is not showing as a negative so it will never drop off your CR.  The time will come when, if you don't settle, you are going to want this to show as a negative so the CRA will delete at the 7 year mark. 

 

I really don't think you're in a good position to buy a house.  I would rent a nice and VERY affordable home/apt and start saving.

 

Good luck!


I think you may be right as far as buying a house.  I already have two repos on my report that are over four years old.  This is dis-heartening to know that I'll have another repo on there unless I can figure something out.....such as paying them nearly $7000 for a bowl of air.  My ex did not give me an opportunity to take possession of the vehicle before turning it in.  That would have been behoove of her to call me before turning it in.  My family is not rich by any means and throwing away $7000 is......unimaginable to say the least.  I did have a thought though, wonder if they could report good payments monthly on that "open" account????  Such as, I will pay you monthly payments if you report those payments to the CRA's on a monthly basis.

Message 18 of 19
Brandon1972
Valued Member

Re: Strict forclosure on my car

And now to make things even worse....in the state of Texas a cancellation of a debt is considered taxable income. Low and behold, today got a notice in the mail from the IRS stating that I owe $2200 for a cancellation of debt. My ex is on the loan as well, did she get a letter? So now it's approx. $10,000 total that I owe to the dealer and IRS.
Message 19 of 19
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