California - Background - in short - car loan with ACA( June 2017 - 27% int) Understandably - we kept loan with intent to pay on-time and refinance. (nobody else would touch us) Unfortunately lost job in early 2018 but avoided car repo'd, by catching up on payments / reducing lates. However - in October 2018 during a lull in payments, account went to charge off - but not to a collection agency. (I also never received a tax doc for the charge off amount)
Been dealing with collections dept at ACA, and will be finally current with account next week. The issue is what I owe from the original note vs what the car is now worth. During the charge off process - ACA cashed in GAP / Extended warranty, lowering my total owed but leaving car with no protection. The car is worth $15K - and the charge off is listed at $35K! (based on the inflated costs of the warranties - and the 27% int rate)
We need to keep the car (still trying to rebuild credit) Cannot view my account online as charge offs with ACA put them in a "ghost" status as I am working with them directly thru collections. As I understand it - this account will always be in charge off status - unless I pay the note in full, not an option at this point - or ask for a settlement amount. (pay to delete - and that's if ACA agrees). I have a few questions - once I am current next week - can I ask for a repayment program for the worth of the car? (similar to a cram down) I realize that the car is no longer on their books, nor will benefit from repo of a car less than the note's worth. Should I confirm with DMV that the lienholder is still listed as ACA? Or no other remedy short of BK? Thanks in advance.