Defaulted Car Loan Help

Ladymajestic2000 · ‎05-17-2022

Someone I know has an auto loan that's charged off on their credit report. They stopped making payments back in October 2021 of a $600 monthly payment. They owe $23,000. What should they do?

Their goal is to keep the car but also get the charge off removed from their credit report. Will this be possible to do simultaneously?

To add for extra detail: The bank they got their auto loan through told him that he can pay it in full, but it'll still show as charged off on his credit report. They said if he pays the $23,000, he'll be able to keep the car but the C/O will just report at a $0 bal on credit report.

ldkcivilservant · ‎05-18-2022

In order to get a CO then payments must have been very late, I'm assuming payment 120 days+? I doubt he has any chance of getting that removed, even if he did pay the balance in full.

The damage is done here I am afraid, if he wants to keep the car, the best he can do is talk to them and see what they are willing to do before it's missing from the driveway one morning.

Ladymajestic2000 · ‎05-18-2022

Yes, the last time he made a payment was in September. So he has

@ldkcivilservant wrote:
In order to get a CO then payments must have been very late, I'm assuming payment 120 days+? I doubt he has any chance of getting that removed, even if he did pay the balance in full.

The damage is done here I am afraid, if he wants to keep the car, the best he can do is talk to them and see what they are willing to do before it's missing from the driveway one morning.

missed 8 months worth of payments