topic Re: Repo question? in Rebuilding Your Credit

Repo question?

bournesto33 — Sun, 21 May 2017 16:33:46 GMT

Good afternoon all,

I am at a crossroad and am having a lot of trouble trying to figure out what steps to take. I pulled out a high interest load though santander back in Aug 2012 for about 14,000, and to date still owe 13,000, my transmission went out and the car is work apx 2000.00... I do not want to invest the money in the vehicle anymore but have never had a repo how bad will it be? How will it affect me in the future, or....Do I still pay on the vehicle, it would cost me more to fix it that it is worth. I am currently rebuilding my credit, but I have a lot of late pays on this vehicle and only these last couple of years have I been able pay it regularly. Advice?

Re: Repo question?

Anonymous — Sun, 21 May 2017 16:48:24 GMT

A repo is going to destroy your FICO AUTO scores for sure -- and for up to 7 years that it reports. If you had trouble getting this loan, expect to never get one again as long as it reports, except from shady "buy here pay here" lenders.

It will also destroy your FICO 08 scores because a repo is just as bad as a BK or foreclosure or judgment.

It's unfortunate that your car has failed while you carry such a high balance, but your best bet is to find a mechanic friend and have them help you buy a $1000 used car for cash. These ARE available if you do your homework. Then keep paying the auto loan until it's paid off and don't make that mistake again.

Everyone can ALWAYS find a $1500 used car that will drive for 2-3 years just fine, but most people prefer the "easy" way of getting financed with a terrible interest rate on a car that is not worth what they paid for. I made this mistake in my 20s but thankfully I was able to pay off that auto loan in 6 months, not many years.

I would not take a repo on my credit report even if it meant I had to work 2 part time jobs extra to pay off the note.

On another note, if you join a car owners forum for your car type, I bet you can find a tree shade mechanic who would be happy to fix your problems for cheap. I had a very expensive transmission problem on a Land Rover ($6000 repair) and I found a local shade tree mechanic who did it all for $1000 over 6 weeks. Did a great job, too -- the transmission went at least 60,000 more miles before I traded it in.

Re: Repo question?

StartingOver10 — Sun, 21 May 2017 17:32:17 GMT

^^^Excellent advice from ABCD above.

Besides, if you do decide to go the repo route (not recommended) - you still owe the money on the loan even if you don't have the vehicle.

This is what happens:

You stop payments on the vehicle loan
Lender picks up the vehicle
Lender sells at auction for pennies on the dollar
The lender adds the cost of repossession to your amount owed + default interest and other items allowed by your contract. These costs ae usuallly large and the credit from the sale is generally very small.
You are notified of the amount you owe by the lender
If you fail to pay it, then the lender can (and usually will) go out and get a judgment against you for the deficiency balance.
The judgment continues to accrue interest as long as it remains unpaid. This judgment can last 10 to 20 years depending upon your jurisdiction and can be renewed for the same term if it remains unpaid and the judgment lienholder chooses to renew,

As you can see, this is a very long and expensive process. Why would you want to go through it when there are alternatives around?

Re: Repo question?

cjane1 — Sun, 21 May 2017 19:48:00 GMT

I have a repo from Santander that was sent to a collection agency. I owed approx 7700.00 and they came after me for the balance and had to settle before they sued me for the full amount. The amount of money you owe I don't think they are just going to let it go.

The collection will be on my credit report for another 2 yrs, Santander will not remove it because they didn't get the money, a collection agency did. I have tried everything to get my score over 700 but because of the repo I am stuck at 680.

Re: Repo question?

Anonymous — Sun, 21 May 2017 23:14:04 GMT

14000 loan in 2012
Owe 13000 today
In about five years you paid off $1000
Going to need more details.

Btw is the car a Acura TL (2004-2008)?

Re: Repo question?

Anonymous — Mon, 22 May 2017 01:48:46 GMT

HELL NO! DON'T DO IT! This advice is coming from someone who has 2 repos on her credit report (thank God they're falling off this year). It's not worth it. Please try to find other alternatives besides a repo.

Re: Repo question?

Anonymous — Tue, 23 May 2017 12:56:04 GMT

Im so confused by this because i had a car repo'd in 2015 by Exeter finance. The balance was like $16k, they sold it at auction shortly there after for $6500... sent me the letter that the balance was due... and not gonna lie, i just buried my head in the sand and ignored it and (knock on wood) ive never heard anything else about it. It's on my credit report as a collection/chargeoff with a $0 balance... it doesnt actually say repo anywhere? Im cleaning my credit up and obviously this is my largest baddie.. im torn on if i should approach them or at this point just kinda let sleeping dogs lie?

Re: Repo question?

cjane1 — Tue, 23 May 2017 15:21:25 GMT

The collection agency that handled my repo only sent me maybe 2 letters in 3 1/2 years. When the SOL was going to expire I started receiving letters and calls from them, I read that the agency has sued before so I decided to pay before it got to that point with a settlement for half. The collection was removed from the agency without asking but Santander is still reporting.

Re: Repo question?

Anonymous — Tue, 23 May 2017 15:23:59 GMT

Then honestly i might wait until that point. When did the collection agency start reporting? there is no CA on my report for that debt and i have yet to be contacted....

Re: Repo question?

cjane1 — Tue, 23 May 2017 16:27:26 GMT

I'm not sure, I wasn't worried about my credit until a couple of years ago, it was reporting at that time.

Re: Repo question?

Anonymous — Tue, 23 May 2017 16:50:34 GMT

I speak from experience on this. I had a repo back in 2012. It too just stayed on my credit as a charge off which i didnt intend to pay. That is until they got a judment filled against me and levied my bank accts and garnished my wages. It was horrible. Dont do it. I truly intended on just leaving it on my report as a charge off and not paying it. I was just going to let it fall off in 2019. They completely disallowed me of that notion. Imagine checking your bank acct and there are $0 dollars in it when you had $3000 in it the day before. Or getting your check and its only $324.00 because of the garnishment. Nobody is saying it so I will. i mean so lets forget about it being FICO suicide. That can be fixed overtime. But what about when you cant pay your rent till the garnishment is paid up. It would be STUPID to to this. DONT DO IT!!

Re: Repo question?

Anonymous — Tue, 23 May 2017 17:20:54 GMT

I dont even know who to talk to try to make arrangements to pay it? Exeter said they sold the debt, how do i find out who it was sold to if they aren't reporting?

Re: Repo question?

Anonymous — Tue, 23 May 2017 17:23:13 GMT

at this point im nervous to even draw attention to it because after bills i only have about $100/wk left for groceries, gas and spending and i have basically no available credit for "emergencies", just 2 secured cards for $200 each.... so i feel like if i call and draw attention to it when i cant afford to pay what if that prompts them to pursue a garnishment.. that would basically be my only option and i get that its financial suicide... but would i be better off to wait until maybe like tax time when i could at least offer them something?

Re: Repo question?

cjane1 — Tue, 23 May 2017 17:36:45 GMT

Songburd18, where you receiving letters or calls from the CA before the levy?

Re: Repo question?

Anonymous — Tue, 23 May 2017 17:39:28 GMT

No calls. But they said they tried to contact me via mail. But they sent it to a very old address so I never got it. But never received even one phone call.

Re: Repo question?

Anonymous — Tue, 23 May 2017 17:41:43 GMT

was it showing on your credit report as a charge off with a dollar amount? I dont even know who i would contact to try to arrange payments?

Profile

COMPANY

Exeter Finance

Exeter Finance Llc

Exeter Finance Corp

LOAN TYPE

Vehicle Loan

ACCOUNT NUMBER

XXXXXXXXXXXXX1001

6806XXXXXXXXXXXXX

ACCOUNT HOLDER

Individual

Individual Account

Individual

DATE OPENED

Apr, 2013

Status

Payment Timeline

History

Terms and Remarks

STATUS DATE

Dec, 2016

Mar, 2015

Dec, 2016

CONDITION

Closed

LAST ACTIVITY

Dec, 2014

Dec, 2015

Not Available

BALANCE

STATUS

Charge-off

Charged off as bad debt

Unpaid balance reported as a loss by credit grantor




1	2	3	4	5	6	7	8	9	10	11	12	1	2	3	4	5	6	7	8	9	10	11	12
2015	2016

LATE 30 DAYS

3 times (Dec 2014)

0 times

3 times (Dec 2014)

LATE 60 DAYS

3 times (Jan 2015)

0 times

3 times (Jan 2015)

LATE 90 PLUS DAYS

22 times (Nov 2016, Oct 2016, Sep 2016, Aug 2016, Jul 2016, Jun 2016, May 2016, Apr 2016, Mar 2016, Feb 2016, Jan 2016, Dec 2015, Nov 2015, Oct 2015, Sep 2015, Aug 2015, Jul 2015, Jun 2015, May 2015, Apr 2015, Mar 2015, Feb 2015)

0 times

22 times (Dec 2016, Nov 2016, Sep 2016, Aug 2016, Jul 2016, Jun 2016, May 2016, Apr 2016, Mar 2016, Feb 2016, Jan 2016, Dec 2015, Nov 2015, Oct 2015, Sep 2015, Aug 2015, Jul 2015, Jun 2015, May 2015, Apr 2015, Mar 2015, Feb 2015)

WORST DELINQUENCY

90 days past due

None Reported

Collection

HIGH BALANCE

$17,728

TERMS

(74 Months)

74 Months

SCHEDULED PAYMENT

CREDIT LIMIT

REMARKS

Charged off account

Fixed rate

Purchased by another lender

Purchased By Another Lender

Re: Repo question?

Anonymous — Tue, 23 May 2017 18:04:50 GMT

Yes it showed as a charge off with a balance on it. Originally I owed about $7000.00 on the car. They sold it at auction for about $5000.00 So the balance they reported as owed on the charge off was about $2000 give or take a few hundred dollards.

Re: Repo question?

Anonymous — Tue, 23 May 2017 18:06:42 GMT

Ahhh! this confuses me so much, idk why mine doesnt show an amount and shows the worst delinquency as a 90 days past due. It would seem to me like i should have another collection from whatever agency bought the debt....

Re: Repo question?

Anonymous — Tue, 23 May 2017 18:08:27 GMT

Do not let it go to repo if you want another car that is more than a beater for many years to come. Transmissions problems can be corrected by finding a transmission through a salvage yard. I found a transmission for DW Jeep at salvage yard with 1 year warranty for $900. I then paid another $400 to friendly small but certified garage to put it in. That was 2 years ago and it runs great.

Re: Repo question?

Anonymous — Tue, 23 May 2017 20:32:26 GMT

I'm kind of in a similar situation. Voluntary repo (horrible idea but not concerned about credit score at the time) due to moving out of state to Chicago, so don't need a car at all and wasn't going to be able to afford payments plus my insurance tripling. UICCU, the credit union back in Iowa, has kept the account in their own collections department. Was on a payment plan but couldn't afford that anymore either. SOL in Iowa and Illinois both is 10 years, so either way there I'm screwed. Ever since I stopped making the payments back in January, I have only received emails from the collections guy asking me to update my financial info to continue payments. Every 5 days they come in around 1am. When I first stopped being able to make payments he warned me that if it's sold the CA would sue, but UICCU wouldn't. I thought that was interesting. Regardless I can't afford them between paying for school and rent, yada yada. By Illinois law I'm judgment proof due to my low income, so I'm not too concerned.. yet. I'm not going to be in school forever so hoping to make a settlement offer once I make more money. Offered a settlement previously and they refused, stating they would only accept the full $9,000. Long story short. Don't do a repo. It sucks.