topic Re: Eligibility for auto title after charge off in Auto Loans

Eligibility for auto title after charge off

Anonymous — Tue, 03 Mar 2015 00:03:50 GMT

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.

Re: Eligibility for auto title after charge off

sobreezy — Tue, 03 Mar 2015 05:06:48 GMT

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.

Re: Eligibility for auto title after charge off

Anonymous — Thu, 05 Mar 2015 22:46:57 GMT

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.

Re: Eligibility for auto title after charge off

cartwrna — Sat, 07 Mar 2015 04:19:01 GMT

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.

Re: Eligibility for auto title after charge off

Anonymous — Tue, 10 Mar 2015 05:24:16 GMT

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.

Re: Eligibility for auto title after charge off

jim44 — Tue, 10 Mar 2015 19:23:28 GMT

@Anonymous 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.

Re: Eligibility for auto title after charge off

cartwrna — Tue, 10 Mar 2015 21:20:50 GMT

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

Re: Eligibility for auto title after charge off

jim44 — Tue, 10 Mar 2015 21:26:47 GMT

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

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.

Re: Eligibility for auto title after charge off

cartwrna — Wed, 11 Mar 2015 03:38:58 GMT

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.

Re: Eligibility for auto title after charge off

Anonymous — Sun, 19 Apr 2015 02:45:27 GMT

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.

Re: Eligibility for auto title after charge off

Anonymous — Sun, 19 Apr 2015 15:49:00 GMT

I am not an attorney but I doubt having a conversation with Capital One would restart the SOL, I know it won't have an impact on the DOFD which is what dictates the SOL for your credit report. While for you this is a very personal issue for Capital One this is just business and you won't be the first in this situation. I don't see any way to resolve a situation like this short of calling them and asking.

Re: Eligibility for auto title after charge off

Anonymous — Sat, 11 Jul 2015 19:52:44 GMT

Is there any update on this situation? I am in the EXACT situation.

Re: Eligibility for auto title after charge off

Anonymous — Sun, 12 Jul 2015 19:30:05 GMT

Also not an attorney ...

I would just inquire to the DMV about getting the title. If they require a lien release from Cap1, you can do it by mail, and the Dmv must have a form for it, they have one for everything.

The Dofd and the CO rule the day here and they wont change. An inquiry on a 14 year old car wont re-age it.

I am sure Cap1 has no interest in the car now, they have already done the accounting change to CO and if they did take that car now, it would be of little value to them to wholesale it, especially after the physical repo fees.

So if it were me, I would just start at the Dmv and request the title and work it from there.

hth

Re: Eligibility for auto title after charge off

Anonymous — Mon, 24 Aug 2015 21:05:01 GMT

Update:

Started with a phone call to the DMV and they just sent me over to Cap 1 as they are the lein holder from my original financing. After talking with Cap 1, the balance that I was carrying with them was a little over 8k. They offered a settlement at $2k to release the title. They were very easy to deal with and started the conversation by stating that because of the date on the original charge off that they could not sue for any debt on the vehicle (a nice thing to hear). However, and obviously, without paying the settlement amount, the title wouldn't be released. I had a letter sent via postal mail stating the terms, I paid the debt, received the title, and sold the vehicle for $2k. Could have sold the vehicle for more but I was in no way looking to make money off of the situation. Breaking even and moving forward from this situation is better than I could have asked for.

Hope this helps!

Thanks to everyone who helped out on giving some advice and information on this!

Re: Eligibility for auto title after charge off

Anonymous — Mon, 24 Aug 2015 21:19:37 GMT

@Anonymous wrote:
Update:

Started with a phone call to the DMV and they just sent me over to Cap 1 as they are the lein holder from my original financing. After talking with Cap 1, the balance that I was carrying with them was a little over 8k. They offered a settlement at $2k to release the title. They were very easy to deal with and started the conversation by stating that because of the date on the original charge off that they could not sue for any debt on the vehicle (a nice thing to hear). However, and obviously, without paying the settlement amount, the title wouldn't be released. I had a letter sent via postal mail stating the terms, I paid the debt, received the title, and sold the vehicle for $2k. Could have sold the vehicle for more but I was in no way looking to make money off of the situation. Breaking even and moving forward from this situation is better than I could have asked for.

Hope this helps!

Thanks to everyone who helped out on giving some advice and information on this!

Well Done!

Now you have the 14 year old car gone, you did not lose money because you recovered it from the sale, AND you resolved a CO with Cap1!

Even though they couldn't sue, they could have black listed you forever. Now they will likely let you back in, but I would certainly let the dust settle on it. I used to live in NE Ohio so I would have said 'let the 'Rust settle', lol.

Maybe you'll never need them for an auto loan again, but you might have use for a CC in the future.

I'll say it again, Well Done, you took the high road!

Re: Eligibility for auto title after charge off

Anonymous — Wed, 06 Dec 2017 21:14:01 GMT

Question: Did it pop back up on your credit report as "settled for less the full amount"?