topic Re: Voluntary Repo / Turn in in Auto Loans

Voluntary Repo / Turn in

dpage — Mon, 02 Apr 2018 13:15:47 GMT

Hello community.. it's been about 2 months since I made a post. Need some advice... Long story short, I have a TERRIBLE auto loan at the moment.. 23%, accurs interst daily when past due, payments are $515 per month. I financed $21K almost 2 1/2 years ago and today's payoff is a little over $19K.. this loan is killing me.. we can no longer afford to throw money away for this car. I recently received a bonus at my job and considered dumping that into the car but there are several things that need to repaird/fixed at our house. My consideration is to give the car up and take part of the bonus to purchase an older use car for cash. I understand that I will still be liable for the balance left over once the car sells for pennies on the dollar at some auction. And I know my credit will take a major hit, but my score is low now so I'm too concerned with financing anything in the near future. I guess my main concern is, will the lender be willing to work with me for the remaning balance, and will that balance have any interest attached to it? Or will they try to sue me without working out a payment plan? The lender is Capital One. Any suggestions or previous experiences will be greatly appreciated.

Re: Voluntary Repo / Turn in

Kree — Mon, 02 Apr 2018 13:42:18 GMT

I don't have all of your numbers, so the simulation is a bit of an estimate, but if you can pay an extra 85 a month, you should save about 3,500 over the remaining life of your loan.

You mentioned a bonus, for every extra 1,000 you pay today, you will save about 2,000 in interest over the remaining life of your loan.

If you would like more accurate numbers, or more specific paying scenarios, you will need to provide:

Initial dollar amount of loan

Initial Monthly terms of loan

exact interest percentage (a flat percentage is rare, so I'm assuming its actually 22.95 or 23.15 or something)

Exact dollar amount remaining

Exact # of months remaining

Re: Voluntary Repo / Turn in

dpage — Mon, 02 Apr 2018 13:51:22 GMT

Hello, thank you for the response. Please see info below:

Initial dollar amount of loan:$20,853.74

Initial Monthly terms of loan: 74 months

exact interest percentage (a flat percentage is rare, so I'm assuming its actually 22.95 or 23.15 or something) 20.68%

Exact dollar amount remainingPrinciple payoff $19075.22, Today's payoff $19,665.08

Exact # of months remaining 45 months remaining

Re: Voluntary Repo / Turn in

Kree — Mon, 02 Apr 2018 14:37:35 GMT

I'm having trouble reproducing your loan. were there any additional terms you forgot to mention? like a 600 dollar processing fee? Also with the interest listed, and the original principal balance listed, i can't seem to figure out how you owe 19,000 after 29 payments. Even when massaging the numbers to get other inconsistencies to line up, I'm looking at a number closer to 16,000. Are there any late fees or missed payments you haven't mentioned?

Re: Voluntary Repo / Turn in

dpage — Mon, 02 Apr 2018 14:55:49 GMT

Thank you for taking the time to look at this.. it's much appreciated. yes, there has been several late payments through out the loan. I'm currently 3 months behind now. I have attached the screenshot info for the loan as well. I was told interest is accuring everyday the loan is late.

Re: Voluntary Repo / Turn in

Kree — Mon, 02 Apr 2018 16:05:13 GMT

Thanks for providing all of this additional information. I'm afraid though that the more I learn the more questions I end up having. But since its a Cap1 (reputable company) loan, I won't dive to far into your numbers, as I will assume they aren't trying to pull one over on you.

As an overview, It looks like you need to pay about 3,600 just to get your loan back on track. After which paying an additional 100 a month will reduce your loan terms by 10 months, and save you roughly 1700 in interest. Paying an additional 200 dollars will save you about 2700 in interest and cut your loan down to 29 months.

Alternatively, after bringing your loan current; a flat 1,000 paid would save you about 1,100 in interest and take 4 months off of the term. 2000 would be 2,100 and 8 months off.

Re: Voluntary Repo / Turn in

Anonymous — Mon, 02 Apr 2018 16:19:35 GMT

You really don't want a repo. I know you mentioned having lousy credit now, but with a repo they will sell your car for next to nothing and you'll be left still owing the balance minus the proceeds from that sale.

I would throw as much money at this as you can, visit the rebuilding forums to see what you can do to get your scores up, and refinance as soon as your scores and LTV allow.

It might not even be a bad idea to sell your house and basically just start fresh.

Re: Voluntary Repo / Turn in

dpage — Mon, 02 Apr 2018 16:29:31 GMT

I guess my concern is, I'm not going to have extra money to throw at the loan that I can see for the time being. After speaking with Cap 1, they mentioned that there will not be any interest charged to the deficient balance unless I don't pay and they get a judgment. It seems like a cheaper route to go. I know a repo on the credit report will terrible, but I already have one repo from this car.. I ended up getting it back. To ge to the point, what do you think the terms will be once they come back after the deficient balance?

Re: Voluntary Repo / Turn in

Summer16 — Mon, 02 Apr 2018 23:56:58 GMT

@dpagewrote:
I guess my concern is, I'm not going to have extra money to throw at the loan that I can see for the time being. After speaking with Cap 1, they mentioned that there will not be any interest charged to the deficient balance unless I don't pay and they get a judgment. It seems like a cheaper route to go. I know a repo on the credit report will terrible, but I already have one repo from this car.. I ended up getting it back. To ge to the point, what do you think the terms will be once they come back after the deficient balance?

dpage, Here's my story as I have been in a similar situation with Capital One before. I was 3 months behind. I kept in contact and made arrangements. I had to pay one note before a certain date. Then they moved one note to the end of my loan. Then the other month was split in half and tacked on to my next two payments that I had to make on time. I caught the loan up. However, the note was still too much for me, I knew I would be behind again and I eventually ended up going bankrupt. Once I filed, I ended up getting another affordable vehicle through the 722 Redemption program.

If you do a voluntary repo, you will get sued. They will get a judgement. But it depends on your state law if they can request wage garnishments, bank account or tax refund levies.

I couldn't phantom the thought of a voluntary repo with a 28k deficency judgement sitting on my credit report. On top of that, I would be garnished for the next four years on a car I was no longer driving. Plus, I would have to pay for another vehicle to replace the one I voluntarily returned. Nope! Don't think so. Wasn't doing that. So bankruptcy was the answer for me.

Do what will provide you relief and soon. Only you know your full situation and you don't have much time before this becomes an involuntary repo.

Re: Voluntary Repo / Turn in

Anonymous — Tue, 03 Apr 2018 03:50:09 GMT

Have you ever advertised it in Craigslist and found out what a willing buyer was willing to pay you for it?

Did you get a carmax offer on the car? how about selling it to a DEALERSHIP.

What do you think one is willing to offer you for this car in its present condition?

Find out how much deficient will you be selling this car away.

Have you filed Bankruptcy before? which one? how long ago? if not, that may very well be a better solution.

Is it fair to assume that your CREDIT is not exactly good? what are your scores? have a previous Repo you said?

what else is showing on the report?

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 11:09:34 GMT

Hello and thank you for the response.. I have gone to carma,. They only offered me $10,200 for it. I have not listed it on craigslist yet because I don't have the difference saved up. I've never filed for bankrupcy before, have definitely considered it.. Right now all of my scores (and wifes) scores are in the low 500's due to several late payments on our mortgage and cars.. Recently had the mortgage remodified so good news is it is now current. I do have a repo that is about 3 years old now. the car I'm talking about was once leased (big mistake in the long run) we fell behind and the car was taken, we were able to scrape the money up to get the car back.. I'm just wondering would they sue me right away for balance or be willing to work out payment plan.. I was told by Cap 1 that every case varies. I was also told by them there would be no interest on the balance as long as I agree to work with them.. but I'm just not sure if they will want the balance in 30 days or be willing to allow me to make payments..

Re: Voluntary Repo / Turn in

AppHappyTog — Tue, 03 Apr 2018 14:09:39 GMT

Sorry to hear about your troubles, I’ve been there- after my divorce my home went into foreclosure and my ex stopped making payments on the truck we’d financed that he got in the divorce. It was a train wreck of a situation so I can completely sympathize with where you are.
Congrats on the home loan mod- it was a lifesaver for me and my situation.
Reading through the comments it looks like you’re already in repo territory, they picked up our truck right at the 120 day mark.
Given your situation, not that would I ever advise a allowing a repo after what it did to my credit. You’re so upside down and already behind that refi likely isn’t an option and selling it will still leave you with a deficit. It may be in your best interest if you’re caught between being able to afford your home or your auto loan, sometimes you just have to pick and you’ve gotta have a roof over your head.
I’m almost 5 years post repo and foreclosure proceedings and up until last week, I drove a cash car that suited our family well enough and got us where we needed to go reliably while I worked on fixing my train wreck credit.
As far as our repo- we paid around $21k for that vehicle, owned it for 3 years and the balance owed at time of repo was $16k, including fees. We lucked out and it auctioned for $12k so I was hit with the deficit balance of $4k. At that time, WFDS was willing to work with me and settle but I had just had a baby and had barely scraped by to save my home so it wasn’t an option and now they aren’t willing to accept payment and have changed it to a charge off sometime in the last couple of years.
I’m willing to bet that once your car is taken and auctioned that CapOne may be willing to settle with you and if I were you I would heavily consider that so you don’t have them reporting every single month that you fail to pay the deficit balance so you can be on your way to repairing your credit sooner than later.

Best of luck

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 14:35:49 GMT

Thank you for your response.. Yes, i am definitley leaning towards turning the car in. The only thing that is holding me back, my wifes car will be paid for in about 9 months.. which will give us some wiggle room.. but it's going to be a struggle holding on for that time period because we have other bills as well.. and being so upside down it seem pointless to continue to pay. Once again, thank you for your response! it's greatly appreciated.

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 14:46:12 GMT

Just out of curiosity, did they want the lump sum after the repo, or were they willing to accept payments each month?

Re: Voluntary Repo / Turn in

AppHappyTog — Tue, 03 Apr 2018 15:35:38 GMT

I was dealing with Wells Fargo Dealer Services, but within 2 months of picking up the truck and auctioning it (it was auctioned within 7 days off repo according to the paperwork) they offered a lump sum that I think was around $2.5-$3k or monthly installments. If I had it to do over again, I would’ve scrambled for the funds and taken the lump sum offer.

Re: Voluntary Repo / Turn in

Anonymous — Tue, 03 Apr 2018 17:52:25 GMT

dont fall for anything cap1 tells you. You have DEFAULTED, yes a payment arrangement is possible.

If you do get $10,200, how much of a loan balance remains. (irrespective of late/no pay for last 3 months).

I would hire a NACA lawyer if cap1 sues and cap1 is known to go to courts more often than other companies.

Do you even know when exactly was the very last payment you made to capital one on this car? Make note of that date and month.

Have to be accepting of the fact that a derogatory will stay on your record for 7 and half years from your last payment date. can you actually live with it. Remember, cap1 is not govt and cannot seize any of your assets via wage garnishments or the likes. It has to go thru courts and an order issued before wage garnishment happenzzz.

I m not a lawyer but i have survived two derogatory worth $100k+ living for 7+ years without paying a dime to creditors. Unless you are ready willing and able to survive the derogatory your best bet would indeed be Bankruptcy.

Re: Voluntary Repo / Turn in

Anonymous — Tue, 03 Apr 2018 17:57:39 GMT

i'd suggest dont let your wife's car go? do everything to payoff wife's car?

Even a 30 day late on wife's car will not look good for future. it will haunt you for very long.

do not shy away from applying for Loans everywhere you can to make payments on your wife's car. even if it means taking money out of credit cards with high interest or car title loan and making payments.

I have taken car title loans very often & knowing you will be paying $75-$100 in interest only is much better than taking even a 30 day late on credit report.

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 19:13:42 GMT

Definitley.. my wifes car is not the issue.. it is mine.. we have made sure to keep up with payments being as though its almost paid for.. a little over $3k to go.. My car still has a balance of over 19K two years later.. the original loan amount was almost $21K.. terrible..

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 19:15:33 GMT

Thank you for that info..

Re: Voluntary Repo / Turn in

dpage — Tue, 03 Apr 2018 20:29:29 GMT

I still owe 19k on the loan, we have been making payments every month. but being as though it's behind so much, each payment is keepling the car from being reposessed.