gravelgirl66

Should I even Bother?

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hello,

Here is my problem.  CH7 BK 04 dishcharged.  AFTER the BK I had an auto loan that I voluntarily surrended to Cap One. in 2007.  Due to age off credit reports in Aug. 2014.  The negative balance after the auction was 12K.  No judgement, no calls, no nothing from them, except for the credit reports.  All 3 show $12K balance.

 

Over the years, I have sent DV, tried disputing as not mine, etc.. ALWAYS comes back.  I have never been able to get rid of this.   I have had No other negative info since that point.  Always on time, and have re-established several auto loans, cc, LOC, etc...

 

This year, I would like to buy my first home.  I was trying USDA, or VA.  I already have the certificate.  However, EVERY lender I have talked to from a broker, to wells fargo, to Navy Federal, won't touch it with a 10 foot pole bc of that "charge-off" without it being settled. -Or showing a "zero" balance. -   And they say anyways, with even FHA,or VA, or USDA,  i have to settle that debt bc of how much money it is. Something about the creditior placing a "lien" on the new mortage, which I dont see how that could be done since  I have already surpassed the SOL.   Even *if* they did sue, I could use the SOL as a defence.. so ? that doesnt make sense.

 

**should I "settle" the debt to get this clear to buy a home?  I have heard it will start my time again, which of course I don't want.  However, so tired of waiting out these 7 years to purchase.  If so, how much should I settle? 15%?  I assume that the OC still has this, bc I have never recieved a collection call from anyone else, and no other creditior has marked this on my reports.   I have to use the VA, OR USDA, bc I have not much of a down payment. - Ideas> Thoughts?

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I don't know where it is now, but there is info on this board about the legal steps in a repo and if a creditor or JDB fail to follow each step you can get out of it. You will need to search here on the board and else where, but you should have a good case against them and making them go away.

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The SOL for collection or for reporting on your CR would have nothing to do with a lien being placed on your mortgage.   Usually, a lien is the result of a judgment.  Even though there was no judgment at the time of sale, you need to find out if Cap1 can still sue you for the balance.  If they could sue and got a judgment against you, they could place a lien on property.

 

A car loan is a secured transaction.  The SOL for that kind of debt might be longer than the SOL for an unsecured debt such as a credit card.   I would speak to a consumer attorney to find out about the SOL and to see exactly what Cap1 could or could not do at this point.

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I don't believe I have any out with that situation.  I feel Cap One followed the proper routes/steps.  I called them, said I was no longer making payments, please come get the vehicle, within 2 weeks they did, I recieved a letter in the mail about the auction and if I wanted to buy it back, etc... Obviously I didn't.  Within those next week, I recieved a letter in the mail regarding the price it sold for at auction which was about right... They got 15K for mine.  And from that point, they wrote it off and that was that.  They haven't called me since, and I haven't called them, other than disputing etc... So what else do you think i could try?  Thanks! 

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The statute of limitations for automobile repossession in Florida is five years, according to the state's statutes, chapter 95.11.

So it appears I just made it?  This Sept. should have been my 5 years.   My CR state DOLA OF 9/2007.  Date of 1st Deliquency 09/2007.  Repo: 08/2007 (J) Voluntary Surrender.

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The statute of limitations for automobile repossession in Florida is five years, according to the state's statutes, chapter 95.11.

So it appears I just made it?  This Sept. should have been my 5 years.   My CR state DOLA OF 9/2007.  Date of 1st Deliquency 09/2007.  Repo: 08/2007 (J) Voluntary Surrender.

 

Agreed with Recovering Attorney.... I wouldn't pay them, ride it out....

 

It sounds like you made it anyway, concerning the SOL for a written contract, however a lender may still ask you about it because it will stay on your CR for 7.5 years.

 

Remember this - the longer a debt sits on your CR, the *better* it is for you and the less it will affect your credit score.

 

I have something similar with an apartment complex in FL, and I've already brought my 'real' Credit Score (not my sucker score), up 100+ points and can qualify for a mortgage.

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