It’s been awhile since I posted on here, but I was looking for some advice on if this is something good, or something that will be a bad nightmare.
I was involved in a car accident, and my vehicle is totaled. I never had this happen in my life, so I am not sure of the procedure that goes along with it.
I have a first lien on the vehicle. I knew when the insurance settled; the first lien would be a wash (or at least close to a wash). I was correct and the lien was within $4.00 of being a wash. I probably will have to pay $4 and some change to walk away from the first lien.
HOWEVER… About 3 years ago, another finance company approached me about an offer getting rid of my credit card debt. They would give me a loan with a “fair” interest rate pay off all my credit cards, and roll it into a 5 year installment loan. I thought it was a great way to lower my payments and be credit card free. The catch was they would put a 2nd lien on my vehicle. I liked my vehicle, had no intentions of getting rid of it anytime soon, so I took the loan. The 2nd lien is giving me some complications with this accident. The finance company told me they will no longer take a 2nd lien on a vehicle. I offered to switch collateral, and use my other vehicle. There was enough equity in my 2nd vehicle to pay off both liens. But They won't do another 2nd lien. In order to make this good, I have two options… 1st option is to pay down the loan, and see if I could be approved for an unsecured installment loan. 2nd option would be to see if I can redo the loan unsecured. It makes it sound like they are going to hold my title hostage, and told me I need to settle with them if I want them to sign off on the title.
HOWEVER, I contacted my insurance company today. They told me the case is settled. My 1st lienholder is paid.. The title has been signed over to the insurance company. I asked about the 2nd lien. The insurance company responded they sent numerous requests to the 2nd lienholder, and have not received a response on the details of the loan (pay off balance, interest rate, and terms). Phone calls weren’t returned, and faxes weren’t answered. It is my understanding after 2 weeks of no response.. The insurance company paid out, and signed off on the title based on the information they have. Also it is my understanding the 1st lien holder tried to settle with the 2nd lienholder for something. The 2nd lienholder declined.
My question is what do I do now to make this fair? I am not sure if what happened was a blessing, or a nightmare. What is the best way to settle this debt? Is the ball more in my court now to negotiate a better deal? I don’t want to redo another loan, unsecured probably will mean an outrageous interest rate. Can’t I just pay the same terms as agreed without rewriting the loan? I’m sure the finance company won’t like it, but right do they have a choice? I am confused, and worried. LOL
