GetNAgrip11 Posted February 7, 2012 Report Share Posted February 7, 2012 Ok so is there any hope for us now? My fiancé and I have been trying to get our finances in order for the last few months. His credit score is about 540. One of our goals was to try and refinance the truck so that we can get a better interest rate and possibly lower the payment. We got it last year at a buy here pay here who does not report to his credit @ 24.99% interest. It is a 2002 F150 with 163,000. We currently owe $6,800 and the value is right around $4,700. Right now we pay $210 every two weeks and honestly we need that lowered just a bit. Over the last year we have paid every payment on time and even got a letter of credit stating that he is one of their top ten best paying customers. We took this and applied for refinancing at his credit union and we were denied because we are upside down on the loan as well as for delinquent accounts. In 2009 he had a repo. He currently has no open accounts. But has quite a few older charge offs. Some are from close to seven years old and we are hoping they will be removed from his credit soon. He also has some medical bills and a few utilities that may be the delinquent accounts. We honestly just want a lower interest rate, anything lower than 24.99%.What I am wondering is would it be best to try to apply for refinancing somewhere else or try to pay down the difference between what we owe and the value of it and try again? Not sure where to go from here. I would very much apreciate some friendly sugestions or advice. Thank you Link to comment Share on other sites More sharing options...
Denita Posted February 7, 2012 Report Share Posted February 7, 2012 We don't have enough info yet. What are the delinquent accounts, amounts and dates and types?Even then, the vehicle has too high milage for a refi for any lender of which I am aware. Most CU's have specifics as to age and milage of the vehicle they will finance. There may be another way to handle this issue, but we would need to know more of your credit picture to help. Link to comment Share on other sites More sharing options...
GetNAgrip11 Posted February 7, 2012 Author Report Share Posted February 7, 2012 We don't have enough info yet. What are the delinquent accounts, amounts and dates and types?Even then, the vehicle has too high milage for a refi for any lender of which I am aware. Most CU's have specifics as to age and milage of the vehicle they will finance. There may be another way to handle this issue, but we would need to know more of your credit picture to help.Ok this is a tough question to answer as his credit is a mess and I am still a newbie at this trying to wrap my head around it all. The delinquent accounts would be the ones in collection right? There are a bunch and this is from Equifax only september 2011. I dont currently have the other reports.ATMOS utility $180 first delinquent 5/2009 Radioligy Assosiates of Tarrant County $32 Radioligy Assosiates of Tarrant County $179 Radioligy Assosiates of Tarrant County $202 Radioligy Assosiates of Tarrant County $31Radioligy Assosiates of Tarrant County $194Radioligy Assosiates of Tarrant County $28Radioligy Assosiates of Tarrant County $33Radioligy Assosiates of Tarrant County $37Radioligy Assosiates of Tarrant County $32All of those were delinquent 2/2011 Medical Edge Health care $131Medical Edge Health care $30Medical Edge Health care $232Medical Edge Health care $511Delinquent 08/2010Radioligy Assosiates of Tarrant County $67 Delinquent 6/2006Radioligy Assosiates of Tarrant County $71 Delinquent 7/2006Medstar EMS $1,714 Delinquent 1/2011Get A Phone $46 5/2008Baylor AllSaints medical center $50 9/2010Sure deposit Cypress Springs $500 7/2005Cypress Springs Alliance $893 7/2005Plaza Medical Center $1,229 6/2006Now for the bad checks:Pizza Hut $55 10/2009 $85 owedPizza Hut $65 10/2009 $95 owedPizza Hut $32 11/2009 $63 owedPizza Hut $53 10/2009 $83 owedPizza Hut $47 10/2009 $77 owedPizza Hut $44 10/2009 $74 owedPizza Hut $89 11/2009 $119 owedPizza Hut $50 11/2009 $80 owedPizza Hut $48 9/2009 $78 owedPizza Hut $39 9/2009 $69 owedPizza Hut $39 9/2009 $69 owedPizza Hut $46 9/2009 $76 owedQuickTrip Texas $33 7/2005 $63 owedQuickTrip Texas $5 7/2005 $35 owedQuickTrip Texas $4 7/2005 $34 owedQuickTrip Texas $13 7/2005 $43 owedQuickTrip Texas $32 7/2005 $62 owedQuickTrip Texas $29 7/2005 $59 owedSPEED CASH payday loan $559 2/2008 $619 owed Link to comment Share on other sites More sharing options...
GetNAgrip11 Posted February 9, 2012 Author Report Share Posted February 9, 2012 LOL no response... yes all of that mess is quite breath taking when you first see it. I am working on learning the right methods to deal with all of it. Sending letters ect..... Anyway he tried the refinance through the credit union and got denied. Today in the mail he got the letter to obtain the credit report they used which is one we do not have so definatly will do that. However we also got a letter from the buy here pay here place Choice Cars. It seems they took notice of our attempt to refinance. Here is what the letter says:Dear Customer:During a recent audit of your account we realized that there may have been some confusion regarding the Annual Percentage Rate (APR) for your loan and the Finance Charge for your loan with Choice Cars.We want to make sure that you understand the correct APR and Finance Charge for your loan with Choice Cars.Your Annual Percentage Rate (APR) is 22.8798%Your Finance Charge is $2,957.46All of your payment amounts and payment due dates are correct on your contract with Choice cars. You will continue to make the same payments on the dates shown on your contract.Please sign and return this letter to Choice Cars at your earliest convenience. It is very important that we get this signed letter back from you as soon as possible. A self-addressed stamped envelope is included in this letter for your convenience. Then it is signed by the general manager for Choice Cars.The original documents that he signed almost a year ago had the APR at 24.351% Finance charge of $3,237.40This tells me that they have lowered it in an attempt to keep our buisness which is awesome. More money to the principle but still a really bad deal. My question is, should we sign or should we talk to them to see if they would lower it further. Maybe leave out the fact that the CU denied us. lol Link to comment Share on other sites More sharing options...
Denita Posted February 9, 2012 Report Share Posted February 9, 2012 It is very strange they would send you a letter like this. In fact, it has terms and conditions just like a note. My concern would be this: there is no pre-payment penalty mentioned or not mentioned and if you sign it and then pay it off in a few months, are they going to request the full amount of interest as stated in the letter? When you have these types of loans (Buy Here Pay Here) it is common for them to have a pre-payment penalty built into the note. They have a modified form of Rule of 78's that they use on their in-house notes. There have been restrictions placed on Rule of 78's notes so some of the BHPH places call them by another name - Add on notes or whatever name. The result is the same.It would benefit you to speak to an attorney before you sign this letter. Maybe all you have to do is add an amortization schedule and language that says "no pre-payment penalty"; but I'm not an attorney so I don't know. Link to comment Share on other sites More sharing options...
GetNAgrip11 Posted February 10, 2012 Author Report Share Posted February 10, 2012 Wow, after I read your post just now I actually just looked over the original contract that he signed and sure enough it has a box checked under prepayment that says if he pays off the balance early he may have to pay a fee. It does not say how much though. I have never actually seen that before now. In fact the guy who drew up the papers was actually incouraging him to make larger payments to pay it off faster and not pay as much interest. Link to comment Share on other sites More sharing options...
Denita Posted February 10, 2012 Report Share Posted February 10, 2012 Wow, after I read your post just now I actually just looked over the original contract that he signed and sure enough it has a box checked under prepayment that says if he pays off the balance early he may have to pay a fee. It does not say how much though. I have never actually seen that before now. In fact the guy who drew up the papers was actually incouraging him to make larger payments to pay it off faster and not pay as much interest.I've seen this before with car salesmen. In fact, I wager he hasn't even read his own contract!Call and ask your note holder the amount of the pre-payment penalty. Ask him where it specifies the amount. Generally the entire amount of interest is due as if you had the loan for the entire term. Look up the statutes in your state to see what limitations there are for pre-payment penalties or interest rates, if any. From the letter sent to you, the note holder may want to work with you to reduce the payment and/or the penalty. If he does, make sure the new terms actually benefit you. That's why I suggest having it all in writing. I would not sign the letter the way it is if it were me. That's why I'm saying have an attorney review BOTH the car loan note you have AND the letter. Link to comment Share on other sites More sharing options...
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