Auto loan being charged off, still posses car, trying to refinance

[Donlawl 0]

Greetings, I need help! 

I have an auto loan that is in the process of being charged off. The bank (wellsfargo) has been attempting to repossess the vehicle for some time, however I've managed to keep it in my possession. I owe roughly 16k on the vehicle but got WF to agree to a 10k settlement offer. I don't have 10k or the means to gain that money in a lump sum. My credit score is terrible (480) but my personal habits and financial habits have drastically improved since I put myself in this situation. I am attempting to get a 10k loan to pay off the settlement (and get my credit/my consigners credit back on track) but I am having difficulty finding a place that will consider my situation. I've attempted to arrange a payment plan with WF to pick up where I left off with the loan but they won't have it. I am at a loss of what to do and am open to suggestions! 

[Clydesmom 1,222]

37 minutes ago, Donlawl said:

My credit score is terrible (480) but my personal habits and financial habits have drastically improved since I put myself in this situation. I am attempting to get a 10k loan to pay off the settlement (and get my credit/my consigners credit back on track) but I am having difficulty finding a place that will consider my situation.

You will not find a lender who will loan you five figures with a defaulted car loan and pending repossession combined with a credit score that low.  You would need a credit score at or near 700 for a personal loan of that amount combined with 2 years of on time payments and good credit/debt management and debt to income ratio.

39 minutes ago, Donlawl said:

I've attempted to arrange a payment plan with WF to pick up where I left off with the loan but they won't have it.

Every auto loan as an acceleration clause in it that states when you default the entire balance becomes due.  Once your default went past 60 days and a repo order was issued you lost any leverage to rehab the loan absent a large lump sum payment bringing it current.  

40 minutes ago, Donlawl said:

I am at a loss of what to do and am open to suggestions! 

Unfortunately there is no good solution to this that is going to allow you to keep this vehicle.  You have the added problem that you have been illegally concealing the vehicle from the bank and their repossession agent(s) for the past 4 months.  They could haul you into court and charge you criminally for deliberately hindering the repossession.

I don't know what your debt situation is but you might want to speak to a bankruptcy attorney and see what options might be available.  I am afraid you are going to lose this car though.

[Harry Seaward 1,356]

21 hours ago, Clydesmom said:

They could haul you into court and charge you criminally for deliberately hindering the repossession.

Only a government entity can initiate criminal charges.

[Clydesmom 1,222]

3 hours ago, Harry Seaward said:

Only a government entity can initiate criminal charges.

If the lender feels the consumer is deliberately concealing the vehicle from repossession depending on what state they have 2 options.  In some states they simply have to go to the local Magistrate or police station and can swear out a warrant for their arrest.  (GA allows this)  In other states they can institute court action almost similar to a debtor's exam that requires the consumer to come to court and produce the vehicle and failure to comply results in arrest.   Either way the government is carrying out the action but the lender is initiating it.

[WhoCares1000 776]

That could be true Harry but Wells Fargo can still haul them into court to find out where the car is at. They can also try to get a writ of replevin which allows the sheriff office to enter a private residence in search of the car. Either way, Wells Fargo will get the car and if the OP continues to play games to hide the car, they could very well end up with criminal charges against them, at least for contempt of court.

As to the OP, I agree with Clydesmom on this one. There is no way any respectable finance company is going to loan 5 figures to the OP based on what they have said. Their best bet at this point is to offer to turn in the collateral themselves in return for Wells Fargo agreeing not to go after them for a deficiency balance. The OP does not have much negotiating power here but has some currently. Once Wells Fargo gets the car, they might as well declare BK because they will be on the hook for the loan plus all the legal fees and repo fees after taking off what the car will sell for at auction. This could be approaching $25k - $30k at this point and climbing.

[dervrak 0]

Wells Fargo is kind of strange. I had a car repossessed by them in 2011. They sent me one demand letter for $24,000 a few months later. Then...nothing. Two years pass and I get an IRS 1099C Cancelled Debt notice from them (which means they took the debt as a tax write off and can take no further collection actions or sell the debt). I've had the "book of the month" club go after me harder for $30.  

[WhoCares1000 776]

First thing to note, they can continue to try to collect the debt after issuing a 1099-C. The issuing of the 1099-C only says that they do not think the debt is collectable. Even the courts have rules that collection can continue after a 1099-C has been issued.

That said, even WF knows that after a repossession, once there is a deficiency balance, the likelihood that it will get paid in full is less than 10%. In fact, these are the easiest debts to settle for (this and deficiency on home mortgages after foreclosure) because everyone knows the odds of collecting are real low.

As for the book of the month club, their whole business model is based on you not paying so they are set up to go after you.

[LaneBlane 98]

If you're able to sell the vehicle for $10,000, the amount WF will accept as a lump-sum settlement, this may be your only option.  If it isn't worth this much, you're probably out of luck.

Once WF takes possession of the vehicle they will sell it or have it auctioned.  You'll be responsible for any difference between what you own and what the vehicle sold for (including fees).

[coach C 0]

What happens when A bank does a cancellation of debt on car and that person still has the car?

[WhoCares1000 776]

On 2/3/2021 at 7:01 PM, coach C said:

What happens when A bank does a cancellation of debt on car and that person still has the car?

Nothing until it comes time to dispose of the vehicle. Then you have an issue because you either do not have the title or the lien is still on the title and you cannot dispose of a vehicle without a clean title. Since the car technically belongs to the lien holder, you might have to tell them to come and pick up their vehicle or maybe even take them to court and demand that they get it. It can be a real hassle.