Voluntary Repo.. where to start? Options

[SpringTX]

I just got divorced and with a $736 child support payment there is no way I can afford a $360 monthly car payment now. The car is financed with CapitalOne and I live in Texas. Payments are still up-to-date but not for long. I think the loan balance is around $15k but it's selling for around $9k-$11k.

So what is my 1st step? Call CapitalOne and ask them where to drop it off? Do I take video and/or pictures to show it's not damaged or wrecked (in case it gets vandalized in their possession and they try to blame me). Should I sign anything or just deliver car with keys?

Any help on where to start would be greatly appreciated.

[Googie]

[mk_378]

When your final and only option is a repo it is best to simply quit paying and wait for them to take it. You can of course keep using the car in the meantime. Though in Texas it is illegal to refuse to make the car available after they ask for it; they have to ask for it first. You can tell them where to find it and even hand over the keys but absolutely do not sign anything they want you to sign, it's just going to be giving up your rights.

Once it does get repo'd, you can cancel your registration and insurance. If it did disappear when you're not looking, check with the police to be sure it really was repo'd and not stolen.

You are then hoping that they mess up on a technicality, such as notification, so you can avoid the deficiency collection.

Realistically, a repo'd car is prone to sell for half of trade in value if you're lucky, even if it is in good condition.

[SpringTX]

Thanks for the reply. From what I've read, voluntary repo saves the extra expenses attached like towing, storage, etc. I guess I'll just call CaptialOne and see what they tell me. There's a couple of banking centers close to me so maybe I could just drop it off at one of those.

I've been reading up on what everyone's doing in terms of the notifications and such. I'm just trying to get this process started on the right foot given my life circumstances.

[MarvBear]

moving to the main credit forum for more views and advice.

[chi]

Thanks for the reply. From what I've read, voluntary repo saves the extra expenses attached like towing, storage, etc. I guess I'll just call CaptialOne and see what they tell me. There's a couple of banking centers close to me so maybe I could just drop it off at one of those.

I've been reading up on what everyone's doing in terms of the notifications and such. I'm just trying to get this process started on the right foot given my life circumstances.

There will still be fees, cleaning, towing to sale site, storage, etc. If you turn it in don't sign anything because you may be signing your rights away.
mk_378 mentioned that it may sell for 1/2 the price if you're lucky, but it may also sell for only 1/3 the price. You would still be liable for the deficiency amount. You might consider selling it yourself, after speaking to Cap One about it, and getting a loan to cover whatever amount is left on the Cap One loan.

Put the term repo in the search bar in this forum and do some research.

[hurricanesfans27]

Thanks for the reply. From what I've read, voluntary repo saves the extra expenses attached like towing, storage, etc. I guess I'll just call CaptialOne and see what they tell me. There's a couple of banking centers close to me so maybe I could just drop it off at one of those.

I've been reading up on what everyone's doing in terms of the notifications and such. I'm just trying to get this process started on the right foot given my life circumstances.

voluntary repo doesnt do anything as far as savings. there is still a tow and storage will still be charged till it goes to auction. As far as what appears on your bureau it means nothing as well. Lucky you live in Texas they cant touch your paycheck and you can make it where they wont be able to find your bank account.

[SpringTX]

I didn't know about the towing/storage fees. I thought that taking to the banking center would save some $$ but from reading your responses I'm completely wrong.

The payoff is $15,5xx on a '03 Honda Pilot EX-L, 84k miles. I rolled in some negative equity from another trade when I bought this so that's why the balance is so high. I thought about selling it privately but with my bad credit I don't think I qualify for a $5000 to $6000 loan. My $736 child support payment is going to kill me financially. When I subtract my rent, child support, and school loan, I have $590 left over every month. My car payment is $360 so that would leave $234 every month for utilities, groceries, gas, insurance, etc.

I spoke with Cap One today and they pretty much said the same thing you guys said. They talked about taking out a personal loan, selling it privately, refinancing, etc.

[sherman_must_die]

Any CC issues?

Lates or defaults?

[SpringTX]

Any CC issues?

Lates or defaults?

Yes. ex was supposed to have been paying all the bills but I've been finding a lot are past due and I'm getting a couple of letters from CA.

[devious9191]

Of course voluntarily bringing it in saves money.. Capital One doesn't have a repo guy working in the back office. They hire a third party, which you can avoid. There will still be fees for towing and storage, but I think you're doing the right thing by turning it in.

[SpringTX]

Just curious: if I file bankruptcy will I get to keep the car?? Also, which is worse, BK7/13 or repo?

Cap1 has not been much help other than giving me the standard remedies like selling the car, refi, borrow money, etc. Does anyone know how to do "take over car payments" sale?? I saw a bunch on Craigslist and was wondering how that works.

[haydeno]

You bank would have to approve the other party to take over the payments and no one is going to take a underwater car unless you give cash to pay down balance. If you reaffirm car in BK and maintain payments you should be able to keep it. I would not do BK unless you have a lot of other debt.

[mk_378]

In bankruptcy, you should not reaffirm a loan that's upside down. It only makes sense to reaffirm cars that have positive equity, i.e. they are nearly paid off.

[SpringTX]

I have a friend that is giving me an older VW (Golf, I think) so I can have basic transportation. I don't really have an issue with driving a beater, my life is a complete mess after the divorce and a fancy car is the LAST of my concerns. So it's really just a matter of getting out from the SUV's $358 payment.

I called CAP1 today and they said they don't care who makes the payments but the car remains in my name until it's paid off. Someone on Craigslist said something about signing a contract and being provided with a power of attorney (POA). I had to sign a POA during the divorce a few weeks ago to get the mini van to my X-wife.

[jtoast]

Sounds like its time to leave the keys in the ingition and the doors unlocked....I kid...I kid

[SpringTX]

Okay, this is what I DON'T UNDERSTAND:

Scenario A: Car is repo'd, sells at auction for next to nothing, CAP1 gets their measly payment, I'm responsible for balance (I owe $15,500).

Scenario B: I sell the car privately at MARKET price (around $10,000 to $11,000), tell the buyer to send the money to CAP1, then I'm responsible for the balance.

CAP1 is telling me, "no way." I told them that I could find a private buyer that would pay them directly and they can come after me for the balance. They said they will not release the title to a private buyer unless the loan is paid in full. BUT, they WILL release the title at auction?!?

Here's how it COULD play out: I sell the car for $10,000 and I owe them $5500. Or, THEY sell the car at auction for about $6000 and I owe them $9500. You tell me, which is the better BUSINESS decision???

[w12345]

I actually did a voluntary repo in 2003...
It was under a totally different set of circumstances and the Co. was FMC.

The information shared by your fellow CBers is accurate.
A "quick fix" is difficult given the situation and the balance due on the vehicle, etc.

Here's an option:

You could "sell" the car to a friend, assoc. or a responsible/trustworthy friend-of-a-friend. It reads: "sell" because, technically, you can't sell property you don't actually own. But, you can work out a scenario with one of the aforementioned candidates, where they give you a good faith down payment (one or two mos. of payments) and, in-turn, pay you (the monthly payment) ea. until the car is "paid off."

E.g.; if you sold the car for $10,000-- it would take 2yrs+ for the third party to pay off their debt w/ you. In the meanwhile, CO is paid/happy. No repo. And, no BK.

The assumption/prayer in all this is that you will be able to regain your footing, credit-wise and fiscally, within this time period... hopefully, being approved for a loan for the difference from a CU or something sometime in the Spring of 2012.

My brother received a $5k loan from a CU and paid somewhere like $32 per mo.
Godspeed, OP.

[MarvBear]

Okay, this is what I DON'T UNDERSTAND:

Scenario A: Car is repo'd, sells at auction for next to nothing, CAP1 gets their measly payment, I'm responsible for balance (I owe $15,500).

Scenario B: I sell the car privately at MARKET price (around $10,000 to $11,000), tell the buyer to send the money to CAP1, then I'm responsible for the balance.

CAP1 is telling me, "no way." I told them that I could find a private buyer that would pay them directly and they can come after me for the balance. They said they will not release the title to a private buyer unless the loan is paid in full. BUT, they WILL release the title at auction?!?

Here's how it COULD play out: I sell the car for $10,000 and I owe them $5500. Or, THEY sell the car at auction for about $6000 and I owe them $9500. You tell me, which is the better BUSINESS decision???

The latter of the two choices, simply because they are able to take a write off and reduce their profit for tax purposes. And that is a pure business decision.

[SpringTX]

Well, they picked up the car on Saturday afternoon, 11/14. I'll start reading all the posts about what happens next and hope and pray these guys mess up in their process.

[sercfm]

If he files BK can't he reaffirm the car crammed down to the actual value of the car today?-

[SpringTX]

This is the letter I recieved from CAP1 a couple of days ago: