topic Re: HELP-Car Repossessed by Auto Equity Lender! in Auto Loans

HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Tue, 18 Aug 2009 19:30:21 GMT

I know you guys must be thinking what nut would take out a equity loan on their vehicle. Well, my brother did and was 40 days late and they repossessed his car today! Unfortunately, he lost his job during that time frame and found another job last week.

The dilemma: They are demanding full payment of the loan in 10 days (that's calendar not business days) and my brother has money in a CD that he is able to get his hands on. However, the funds will not be available until 14 days. The lender is not willing to wait the extra 4 days. I find this appalling! Can they do this? I advised my brother that he should seek legal counsel but he was told by that Lender that this will not make a difference.

Any help or experience on this subject matter would truly be helpful...

Thank you

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Tue, 18 Aug 2009 20:05:13 GMT

Your brother put up his car as equity...he didn't pay they took the equity. I am sure this is in the contract he signed.

Can you loan him the money? Anyone in the family?

They are within their right to take the car and demand payment by a number of days that is stipulated in the contract.

Sorry.

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Tue, 18 Aug 2009 20:29:57 GMT

Thanks for responding. Unfortunately, I am not in a position to do so--I close on my home in a couple of days. I feel really bad for him this is why I posted this on the forum. I can't believe he let this get out of control. The sad part to all of this is that he had money and did not need to take out a loan. This is what happens when you get greedy. I wish I had the chance to warn my brother about these loan sharks. God only knows the interest he was paying on this.

Like I said in my original post I am open to any other suggestions to see if there are any options out there.

Thanks Again,

yayo76

Re: HELP-Car Repossessed by Auto Equity Lender!

Takunda1 — Wed, 19 Aug 2009 03:05:22 GMT

Depends on what state he is in. Every state has rules as to when a vehicle can be sold once it has been repossessed. In most states it is between 10 -25 days. Tell him to check his states repossession laws. Also how big was this loan? Can't a credit card do the trick?

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Wed, 19 Aug 2009 12:48:24 GMT

Thanks for responding---He took out a loan for $6000 and the balanced owed is $4100. Past due amount was $640 and he was 40days late when the car was repossessed. Lender wants the full amount owed NOT the past due amount. Also he resides in NC not sure what the repossession law there is.

Well, my FICO forum... today is day 2 for him and he only has 8 calendar days to figure this thing out before they sell his car. They also told him once it hits that point he is not allow to buy back his car from them.

This just gets worse and worse.

Like I said, any advice is truly appreciated.

Thank you,

Yayo76

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Wed, 19 Aug 2009 19:48:29 GMT

Yayo,

If the CD is held by a bank, see if he can get a personal loan secured by the CD. Hope this helps.

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Wed, 19 Aug 2009 21:18:35 GMT

Thanks for responding Bdog21--- Only problem...my brother just started a new job and now has less than a year of employment history. Normally this is pretty important when trying to secure a loan.

I am still open to any advice or suggestions.

Thanks Again,

yayo76

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Wed, 19 Aug 2009 23:19:18 GMT

Your brother can borrow against his CD. This won't require long approval processes or decisions. Income and job aren't a big deal either because they are not counting on income to repay the loan. If the loan is for less than the CD value....job won't matter.

Banks love to loan against your money - CD or Savings Secured loans.

4 days later he can use the CD to pay off the loan without penalty and an incur only 4 days interest (virtually nothing).

Message Edited by txjohn on 08-19-2009 04:19 PM

Re: HELP-Car Repossessed by Auto Equity Lender!

2wheel — Thu, 20 Aug 2009 00:42:06 GMT

You can borrow aaginst your CD In a secure loan. Most banks usually charge 2% above the yield so if the cd is @ 1.9% he could borrow against that CD @ 3.9@ I just did it a few weeks ago to pay off a credit card from my business it was fast easy and no hassle

Re: HELP-Car Repossessed by Auto Equity Lender!

Anonymous — Fri, 21 Aug 2009 20:15:33 GMT

Thank you for all of your advice. I have passed all of this info to my brother. The situation on unfortunately is still the same. Hopefully, this experience has taught him a BIG lesson. Sometimes it's better to crawl before you walk.

Thank you to the entire Myfico family for your help!

Yayo 76