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7 months after BK, can we re-affirm a lower amount?


punkin_eater26
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I was able to get some advice from Lady and she suggested I try with you all here too.

My BK 7 was discharged in 9/2004. We kept our truck and our house but did no official reaffirming with the lender. The lender is the same for both items. The prob is we owe $12,000 for our truck and it is worth maybe $6,000 and now it needs alot of money put in it to keep it going. We continued with the payments because we need a vehicle. Since we had no legal binding reaffirm with the lender, can we possibly negotiate a lower amount owed for it? And how likely is that to happen? We cannot afford to do a lump sum. I was also thinking about going into our local bank branch to speak with them but I wasn't sure if I should go in or mail, which is better?

Any clues on where to start here? We would like to keep it if possible, but the fact that we're paying so much more than it is worth and the repairs needed is killing me. Help!!

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Hmmm....I don't really have a good answer for you, but here's my thoughts. First, If you've got your house and car through the same bank, you may have a problem with anything you do with the truck. Depends on the size of the bank. If its small town bank where the loan officer handles both loans, you might have a problem. If its a big chain, and your truck is through one big department and the mortgage through another then you might be okay. But...

You probably would be best off to hand the truck over to the bank. Your liability for the loan ended with the BK. Any deal you would work out with the bank (or a credit union for that matter) to essentially refi the truck is going to cost you because of the BK. So...if you can afford payments...take advantage of one of those "we know you filed BK and we'll help you get a new vehicle" offers you've been getting in the mail. Yes, they'll charge you a lot in interest, but you'll get a new truck.

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Yeah, 5th/3rd is probably big enough that the left hand doesn't even know the right hand exists. My guess...underscore guess...is that you'd probably be okay to hand them back the truck and get a new one through the "questionable" credit auto dealers. If you've got a dealer that you've done business with in the past, you might give them a call and see what they can do. Be prepared to pay a fairly high interest rate...

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I was hoping to keep the vehicle vs buying a new one because hubby really likes it. What I really want to do is just talk them down to a lower amount in general. What do you think the average interest rate would be right now with a BK. Now that the BK has wiped away the debt and negs on our CR, we have nothing but good tradelines. I have good back to 95 and hubby from 98.

TY

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There's another term that LadyNRed uses rather than reaffirm (can't remember it for some reason) whereby you buy the truck outright. I'm fairly sure that 5th/3rd isn't going to refi the truck for you but if you can get someone else to lend you the money, you might be able to do whatever it is she mentions.

I wouldn't hold out too much hope for that, however. I've got a car leased through 5th/3rd that I've been trying to buy and nobody wants to finance it for me. I can buy it outright for a pretty good price, but not on payments...

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