LOL Yeah, in general - but it does not cut it in this case. Sandy can't afford to pay the bills (it's 30% of her current income), and she is upside down on her loan, so just selling it is not an option either - she will have to come up with at least a couple of thousand bucks to cover the difference...
Yeah, I know, she should not have been there in the first place, and she knows this too - now. The question is how she can get out with a minimal damage?
Well, there is only one way out usually.
Far be it for me to suggest anything underhand, but - Is it insured?
LOL Mark evil you
For that to succeed one has to have a cold blood and a good knowledge of all things involved. Don't think it is the case here...
You might check this out and find some help.
Sir Dent - That link is not working.
Sandra - Be very, very wary of anyone who says they can "help" you may well find yourself in a worse position.
Misha - True. Although, I would think there are lots of places to park a car in California where it stands a good chance of not being there when you get back
You need to remove a trailing slash from the link
SirDent, I don't think bankruptcy is going to look better on the credit report than reposition, even if she manages to keep her car.
Mark, yeah, but this requires cold blood, too. It WILL look suspicious, since she already stopped paying, and talked to the bank about how to solve the issue...
A chapter 13 is like a reorganization of your finances. It allows you to keep the car while maintaining payments but a much lower payment. It is designed to help you get back on your feet. Once that is set then you can try selling the car if you wish or something else maybe.
There is also debt consolidation which combines all your debts into one payment which is usually much lower than your combined payments all together. Many non profit organizations help people to consolidate their debts.
I fixed the link also.
If you're not able to pay the bills, keep the car in a garage at all times. Legally the repo people cannot go in there. If it's parked on the street they can take it. Don't ever let them repo it. I know so many people who do that thinking they won't have to pay anymore. The way it really works is that they'll sale if for far less than it's worth (or that you could get if you sold it) and then they still make you pay the remaining balance.
Buy your own wheel clamp, or four if you want to really send a message
Maybe this is a dumb idea, but can't you send it back and buy a cheaper car? I mean, they will surely want you to pay the difference on the upside down loan but if you don't have it then at least they can't repo the car you already gave back.
I know someone who did this. It worked out for that person but I don't know your specific situation. I found a 1984 Honda Accord on Ebay two years ago for $1100, paid cash, and it still runs great with 160,000 miles on it. These days everybody's selling an extra car--surely there's an affordable one out there with your name on it.
Article 9-609 of the Uniform Commerical Code says the followings:
(a) After default [you not paying your bills], a secured party [your creditor]:
(1) may take possession of the collateral [i.e. repo your car]; AND
(b) A secured party may proceed under section (a):
(2) without judicial process [they don't have to go to court and sue you in order to repo], if it proceeds without breach of the peace.
SO, basically they have a right to repo your car so long as they do not breech the peace in the process. That means they cannot break into your garage. In some liberal states like CA it even means they may not try to collect accompanied by law enforcement officials. (see comment 3 of 9-609).
At the threshold, if at all possible, pay on time.
If not, undeniably and unvariably, the finance company or loss payee will contract for a repossession of the collateral-your vehicle.
Unfortunately, in California, ( I reside in California), a repossessor can take the vehicle-as long as it is open, public and not secured.
Importantly, DO NOT PANIC!!!
However, all is not loss- contact the loss payee, arrange for a new payment plan, if not, file a lawsuit. Remember, there is no immunity.
Currently, my vehicle was repossessed-I was laid off and unable to make payments. My vehicle was repoed in the night-when I was sleeping. I contacted local law enforcement, who advised it was repossessed.
They did advise that there is 1 hour window for reporting- the repo company notified local law enforcement about six hours later.
SO, I thought possibly an illegal repo? Yes!
I went directly to the local public law library and emboldened myself with the need for justice by researching all the laws and court cases I could locate on "conditional sales, auto finance, repossessions, notices, due process." I spent hours and days conducting legal research on courts, procedures and lawsuits.
Now, I will be filing by own lawsuit as a pro per against the lender, sales/finance people, and of course the repo company either in state court or in federal court. Pragmatically, I will apply for and receive a fee waiver.
Peace and sue!!!
Ye true if they repo,you will still have to pay for the car..
There are many beautiful DESERTS in Calif.especially at night!!!
So the original post was posted 18 months ago. Just wondering how it turned out.
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