New To This - Auto In Repossession

[OO]

I am looking to clean up some of my credit so I can get approved for the home that I have been renting for the last 3 years, no lates.

The finance company is currently looking to reposes my vehicle. Am I better off holding them off until I know the outcome of my mortgage? Or should I just had the vehicle over?

Would it be good for me to try and dispute the lates and status?

Please Advise

[sxxx]

How quickly are you trying to buy this home. What type of time do you have to clean up your credit??

Well you don't want a repo, can you afford to keep the car. Maybe you can negotiate with them. Saying if you make up the payments they will return your credit report status to Paid AS Agreed. Never hurts to try.

They don't want the car, and it costs them to much money to reposess, and paperwork and time.

[OO]

Heck, I do not want the car! Its a Lemon! Either way I have a little time to purchase this home (60) days.

Should I just turn the car over or should I try and hold them off by not letting them locate it. Guess either way it would reflect really bad on my credit report.

I have multible collections so I am going to begin that process to see if I can have some cleaned up. Just really confused about this car.

[kevin3344]

If they're thinking about repossessing the car, no doubt it is already showing lates on your credit report....and that could be hurting your credit and you not even know it. So, in a sense the repossession would be bad, but it is already affecting your credit. I would check your credit scores asap if I were you, before you went in to get approved for a mortgage. At least that way you would know where you stand. Of course, bringing the payments on the car current would be the best course of action.

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Edited September 9, 2011 by kevin3344

[OO]

Mid Score is 530 something and it is showing late, and they are looking for it. They are going to get this car as I am not going to pay for this lemon anymore.

What I need to know is the best course of action. Should I keep it and clean the rest of my collections then in 30 apply?

Give it back and take the hit, dispute other collections and then in 30 apply?

Thank you all for this time.

[sxxx]

Well I guess this looks like a time issue. If you have a 530 score and only 60 days to purchase this house, I am thinking this is going to be impossible in the time frame you have. You say you have alot of collections. It takes them at least a month to respond to any DV or any disputes from the Credit Bureau. So I think It depends on whether you are willing to wait to repair your credit carefully.

Or what you can do is negotiate a settlement on the car, what the finance company can do is accept a one time payment to clear the debt since it is a lemon.

Look on the Kelley Blue Book Value, if the car is worth $2k and you owe $5k offer to pay $3000 to clear the debt. They know they can't get anything at auction for it, if it is a lemon. My husband and I have done this, and it works, and negotiate a favorable credit rating. "paid as agreed and no lates"

[kylemac]

You do NOT want a repossession on your record... banks seem to remember everything, and will not lend you any money for a vehicle in the future -- without huge interest rates.

Even if it's a lemon -- that's between you and the dealership... the bank just lent the money. By not paying the bank, the dealership feels no heat. Remember, they got paid for the car.

Work with your bank on this. You would be surprised how quick they would be to work out a plan, rather than take a bath through a repossession. In this case -- everyone loses, except the person who sold you the car.

Take action today! If you wait, the car will be gone and your credit will be soiled!

[sxxx]

I agree with kylemac

Go ahead and negotiate with the bank or finance co, whomever you took out the loan with. They will be willing to take a settlement on the car, I have done this, and remember "paid as agreed with no lates"

They are trained to be nasty, but be patient and unmovable about your terms!!!!

[poblack]

Honestly, can you afford a home? Based on what you said, it doesn't look like your in the position to buy a home. Perhaps you should just fall back and keep renting until you have your stuff together.

As far as repo, do not do it. Get your car payments current. Then, if your still desperate to get rid of it, have one of your friends steal it, stash it somewhere where nobody can find it in 3 months, and let your insurance handle it.

Just kidding. Good luck.

[DocDon]

OO, did the dealership themselves finance the vehicle (ie: Buy Here-Pay Here)? If not, not paying the finance company because of a car a dealership sold you is not the way to go at all. You're cutting off your nose to spite your face.

If the car had serious defects that were not disclosed, this is a consumer protection issue between you and the dealership - in which case, you file a formal complaint with your state AG, and talk to some consumer protection atttorneys.

If the finance company can't find the car, they'll sue you for it. Now you have lates, a charge off, a judgment, and a repo on your file. Not good at all....