FICO and Repossession

[Anonymous]

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!

[guiness56]

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.

[llecs]

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

[DI]

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@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!

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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. 

[AndySoCal]

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.

[guiness56]

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.

[DI]

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. 

[AndySoCal]

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

[Anonymous]

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.

[happy0510]

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@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.

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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.