topic Re: FICO and Repossession in General Credit Topics

FICO and Repossession

Anonymous — Thu, 21 Apr 2011 22:37:25 GMT

My wife and I recently decided to have our vehicle turned in (why is a long story)... Right now it is reporting as a repossession and a delinquent balance. I believe this is why it says it has been zero months since I was not late on a payment... Point is I have a few questions.

1. When the car is eventually sold, and the delinquent balance is updated etc.... will it impossible for me to reestablish a history of making payments on time? I have a number of other open accounts that I have never been late on. I also have .. long ago .. some accounts that went to collection. So basically paying which accounts will help me establish a history of ontime payments.

2. If they change the way it is reported as a repossession to a charge if I don't pay off the delinquency balance will it lower my score when it goes to a charge off instead of repossession?

So basically, if I just continue to pay my open accounts that are in good standing, will that start the trek to 24 months of continuous online payments?

Thanks in advance!

Re: FICO and Repossession

Anonymous — Thu, 21 Apr 2011 23:22:09 GMT

1. Even if it is updated, it will more than likely remain a repossession. This is going to really ding your score. It could easily drop it 100 points.

2. I don't think it will change to a CO. A CO is just an accounting term.

Even though this will hurt your score your positive payment history, over time, will help.

Re: FICO and Repossession

llecs — Thu, 21 Apr 2011 23:58:56 GMT

Ditto. They'll likely add lates monthly until paid. To prevent further damage, I recommend paying it of as quick as possible.

Re: FICO and Repossession

DI — Thu, 21 Apr 2011 23:59:08 GMT

@Anonymous wrote:
My wife and I recently decided to have our vehicle turned in (why is a long story)... Right now it is reporting as a repossession and a delinquent balance. I believe this is why it says it has been zero months since I was not late on a payment... Point is I have a few questions.

1. When the car is eventually sold, and the delinquent balance is updated etc.... will it impossible for me to reestablish a history of making payments on time? I have a number of other open accounts that I have never been late on. I also have .. long ago .. some accounts that went to collection. So basically paying which accounts will help me establish a history of ontime payments.

2. If they change the way it is reported as a repossession to a charge if I don't pay off the delinquency balance will it lower my score when it goes to a charge off instead of repossession?

So basically, if I just continue to pay my open accounts that are in good standing, will that start the trek to 24 months of continuous online payments?

Thanks in advance!

Having other positive accounts will make it easier for your scores to rebound. But your scores won't ever fully recover until the repo is removed from the credit reports. You really want to make sure you take care the accounts you currently have. It's going to be tough for you to get approved for anything else for a long time.

Also, since the car is reported as a repo, once the lender autions off the car, they're going to want the difference fromyou plus fees. Depending on how big the remaining balance is, the lender may come after you for the balance immediately or they may wait. But they certainly going to try to collect before the statue of limitations is out.

Re: FICO and Repossession

AndySoCal — Fri, 22 Apr 2011 01:28:22 GMT

In my opinion yes it oculd change to a charge off. If the sale of the car does not cover the balance owed. The lender then charge off the remaining balance owed yes. The account could show charge off as the status and in the payment histriy would be the code for a repossesion. The lender might you give you the opportunity to pay the balance before the charge off. You need to ocntinue to pay the accounts in good standing and completly resolve the repossion.

Re: FICO and Repossession

Anonymous — Mon, 25 Apr 2011 00:05:13 GMT

What do you mean resolve the repossession? Isn't that when you come up with the money within a certain amount of time after the car is taken? Probably too late for that.

Even if it was paid it would more than likely report paid after repossession. This comes from my own experience.

Re: FICO and Repossession

DI — Mon, 25 Apr 2011 00:48:20 GMT

I once had a repo before. I cosigned for someone and the car got repoed. It took every piece of my brain cell along with a little psychology and philosophy to get those tradelines with the CA and OC deleted from my reports in May 2009. I still have the letters from them today. It was a major accomplishment.

Re: FICO and Repossession

AndySoCal — Mon, 25 Apr 2011 02:55:37 GMT

Simply, If there is a balance after the sale of the vehicle that is is taken care of.

Re: FICO and Repossession

Anonymous — Mon, 25 Apr 2011 16:50:57 GMT

I was thinking about getting a personal loan to pay off the delinquency balance when it is finalized. Do you think Chase would do a pay to delete deal with me? I keep reading it is common, but then that the creditor is required to report accurately so I am unsure.

Re: FICO and Repossession

happy0510 — Mon, 25 Apr 2011 16:57:36 GMT

@Anonymous wrote:
I was thinking about getting a personal loan to pay off the delinquency balance when it is finalized. Do you think Chase would do a pay to delete deal with me? I keep reading it is common, but then that the creditor is required to report accurately so I am unsure.

I think anything is possible. Sounds difficult, but it never hurts to try.

IME, my repo was reported as a CO, never as a repo.

Re: FICO and Repossession

DI — Mon, 25 Apr 2011 17:16:57 GMT

@happy0510 wrote:
@Anonymous wrote:
I was thinking about getting a personal loan to pay off the delinquency balance when it is finalized. Do you think Chase would do a pay to delete deal with me? I keep reading it is common, but then that the creditor is required to report accurately so I am unsure.
I think anything is possible. Sounds difficult, but it never hurts to try.

IME, my repo was reported as a CO, never as a repo.

Yes it's possible to get a repo deleted, but it takes a lot of time and effort. Also, most repos are not listed as a repo on credit reports. It's common for them to be listed a CO. Mines was listed a CO.

Re: FICO and Repossession

Anonymous — Mon, 25 Apr 2011 17:28:10 GMT

I had 2 of them and both reported as repossessions, not COs. But it could depend on the financial institution reporting.

Mine were from two of the worst there are, CPS and Drive Financial (Santander).

Re: FICO and Repossession

llecs — Mon, 25 Apr 2011 17:35:00 GMT

I think it is a YMMV too. My Americredit was a redeemed repo (after being just 30 stinkin' days late) and reports as a repo now. Come this time next year, it shall be no more.

Re: FICO and Repossession

DI — Mon, 25 Apr 2011 18:15:37 GMT

Mines was with Mitsubishi. They were tough, but I was so much smarter than the collection manager. She was nice though.

Re: FICO and Repossession

Anonymous — Mon, 25 Apr 2011 18:26:09 GMT

So did any of you successfully have the repo deleted?

Re: FICO and Repossession

DI — Mon, 25 Apr 2011 18:31:10 GMT

@Anonymous wrote:
So did any of you successfully have the repo deleted?

Yes, with the original creditor and collection agency.

Re: FICO and Repossession

Anonymous — Mon, 25 Apr 2011 18:47:19 GMT

What did you do and what should do in order to do that same?

Re: FICO and Repossession

DI — Mon, 25 Apr 2011 20:24:49 GMT

@Anonymous wrote:
What did you do and what should do in order to do that same?

Yoiu'd have to find my old posts dating back to around April and May 2009.

Re: FICO and Repossession

TheLegend — Tue, 26 Apr 2011 13:46:09 GMT

You would've been better off having the car ....well, never mind.. I bet not say that.