What should I do with a car loan gone bad

[futurehomeowner?]

So I came on here originally to get help fixing my wife's credit and then I started reading so many success stories which gave me hope so I an diving into mine a little bit.

 

My main problem is a car loan that I have/had and what to do with it. Because of this loan I was going to file bankruptcy but now I am possibly reconsidering that. My current score is 589 with 14 accounts in collections or charged off. I have 4 active things on my credit as well but I will worry about all of that shortly. For now I am trying to figure out what to do with my car.

 

I purchased a car in 2006. I used Capital One where they send you a blank check and you just go buy the car. It is a nice Mustang covertible which I love dearly and was able to afford at the time. In 2008 I lost my job and had to way to afford it. I called capital one and they were working with me on payment arrangements. After 2 months I realized that my lay off was not going to have a happy ending so I called cap 1 and wanted to send the car back. They were unwilling to come get the car and said they are not in the business to take cars back. I continued to drive the car without paying for 4 months and they never came and got it. Eventually my financial situation got worse and I was unable to afford car insurance so I cancelled it and sent in my plate. The car sat in my driveway for months. Now the car is parked at a friends house covered because it is safer there. In May of 2008 they charged off my account (at least that is what my credit report says) and transferred the balance to a CA. I received a letter or 2 from a CA but I just ignored the letter. I just pulled my credit report tonight for the first time in a long time. It says that the capital 1 loan will fall of 09/14. I am not sure where that date is coming from since they charged me off 05/08.

 

Like I said before they sold the account to a CA but other than the 2 letters they sent they dont call me or anything else and they are not even listed on my CR. I am not sure why they are not on my credit report but that seems strange to me. So I guess after writing all of that my question is what do I do with this report and what about the car. If this falls off my report and they never came to get the car does capital one have any other recourse or do they just not care? The next time the CA sends me a letter should I call them and see if they will get the car?

[stroked89coupe]

The ca is not going to come get the car. Stay off of the phone with the ca.

[futurehomeowner?]

well if they don't want the car and cap 1 doesn't want it and I don't want to pay for it whats my next step? When cap 1 falls off my CR is this car essentially mine to keep or will the CA eventually ding my report?

[hrguy]

I had a friend with a similar situation, sounds like you got a free car, meaning if you can still register it - ride it until the wheels fall off, you won't be able to legally sell or trade it in unless they released the title at the DMV which I doubt. That is what my friend did, and now they moved to a new state and cannot title or register the car.

 

CA would eventually ding your report whether you gave it back or not if that is what they intend to do.

[encoder]

Neither Cap1 or any CA collecting on this debt can continue report after the "reporting SOL" that is apparently 9/14 or somewhere thereabouts.

 

They got that date, most likely, by adding 7 years, 6 months to your date of first delinquency, which my guess is probably when you started on the payment plan. You probably have some dates fuzzy from so long ago because charge offs can't happen earlier than 180 days from date of first delinquency so if their CO was 5/08, you may have made last payment like 12/07? And entered the program a couple months before? Which would all line-up with the 9/14 date. But if you're certain about your 2008 dates then hey, you caught a break.

[ultra2207]

What is your date of first default? What is the SOL in your state for auto loans? If its possible to be sued for the balance (if its still within SOL) then personally I would lay low and not do a thing. If you start to fix up your credit and your "collection score" goes up then the CA might be more inclined to sue you..

 

 

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[futurehomeowner?]

You are correct in my dates may be off, I just pulled out my credit report that I got today and it is showing 90 days on 03/08 and C/O 04/08. I am just guessing when my last payment was made based on how the days late are. It reads as follows.

12/07- 90 days

01/08- 90 days

02/08- 60 days

03/08- 90 days

04/08- CO

 

I take that to mean that my last payment had to be Jan or Feb 08. I believe the SOL for all loans/credit card is 4 years in Pennsylvania.

The Pennsylvania Statute of Limitations on debt

The Pennsylvania Statute of Limitations on written contracts, oral
contracts, promissory notes, and open-end accounts (e.g., credit cards)
is 4 years. (42 Pa. C.S. 5525(a))
The creditor has 4 years to file suit from the date of the last
activity on the account, which almost always means the last time the
debtor made a payment. If the creditor has not filed suit within 4 years
of that last payment, the debt is unenforceable. (If the debtor made no
payments at all on the account, the Statute runs from the date that the
first payment was due.)

 

So if I am reading all of this correctly then the SOL for filing suit (does this include repo?) was Feb of 2012. I still have the registration to the car but it has not been renewed for 4 years so I am not sure if it could be renewed but if I end up with this car I won't be disappointed just confused.

[hrguy]

You are correct in my dates may be off, I just pulled out my credit report that I got today and it is showing 90 days on 03/08 and C/O 04/08. I am just guessing when my last payment was made based on how the days late are. It reads as follows.

12/07- 90 days

01/08- 90 days

02/08- 60 days

03/08- 90 days

04/08- CO

 

I take that to mean that my last payment had to be Jan or Feb 08. I believe the SOL for all loans/credit card is 4 years in Pennsylvania.

The Pennsylvania Statute of Limitations on debt

The Pennsylvania Statute of Limitations on written contracts, oral

contracts, promissory notes, and open-end accounts (e.g., credit cards)

is 4 years. (42 Pa. C.S. 5525(a))

The creditor has 4 years to file suit from the date of the last

activity on the account, which almost always means the last time the

debtor made a payment. If the creditor has not filed suit within 4 years

of that last payment, the debt is unenforceable. (If the debtor made no

payments at all on the account, the Statute runs from the date that the

first payment was due.)

 

So if I am reading all of this correctly then the SOL for filing suit (does this include repo?) was Feb of 2012. I still have the registration to the car but it has not been renewed for 4 years so I am not sure if it could be renewed but if I end up with this car I won't be disappointed just confused.

Yea, youre good on the SOL for PA. I would be curious if renewing the reg would peak CapOne's interest in coming for the car.

[futurehomeowner?]

Yea, youre good on the SOL for PA. I would be curious if renewing the reg would peak CapOne's interest in coming for the car.

I did not think about that. Is there a SOL on a repo? Once they charge something off and they sold the debt will they even pay attention to it anymore and are they aloud too?

[hrguy]

Its a loan, so the standard SOL should apply regardless of repo or not, otherwise you would have been sued, especially since they never got the car back either. I said the thing about the reg because they may still have the car titled in their name - this situation is tricky because since they did not come for the car, and sold the CO to a CA, I am not sure who would have the title

[hrguy]

Check with the PA DMV to see who has title to the car and go from there. I know in PA, you would just go to a title place and get the new tag and provide insurance to get the reg back up and running, but without the title, I am not sure. If the plate was still valid it would just be renewing it at renewal since in PA the plate follows the owner and not the car.

[YOUNGWORM]

I am in a very similar situation. Purchased a car in 06'. Date of 1st Delinquency 11/08. I still have the car. Acct was charged of from CitiFinancial Auto (which is no longer in existence). I'm sure they sold the debt to someone but there is nothing on any of my reports stating so. I actually have the title, from MD. and it shows the lien from CitiFinancial. I've Since moved to GA. Car hasn't been registered since 08'. I would like to address it, but I don't want to wake the sleeping Giant. Keeping the car is fine too, as long as I can drive it. Any Suggestions?

[futurehomeowner?]

I honestly have no idea. I am going to save this last baddy until last. it is on my report as falling off mid 14 so I really have no idea what to do. If we were not planning on buying a house next year I woulnt be so concerned with it.

[futurehomeowner?]

Whychat, if you read this, this is the thread that I mentioned in the other car thread.

 

Can capital one legally repo my car since it is past the SOL for PA?

[jak2136]

I had an auto loan a few years ago that at some point as I was paying it off the bank closed/went out of business/sold. They never released the lein or sent me the title. I spent HOURS/DAYS on the phone with different people and banks trying to locate this account/title. The bank that bought out the first bank could'nt find so suggested it might have gone to xxx bank etc etc. Never was able to find it. Finally called the DMV and explained the situation to them and I was told that after 10 years all leins are automatically released. So I waited out the 10 years and then went and got the title from the DMV.

[futurehomeowner?]

10 years from what date? The original loan date?

[jak2136]

Yes from the date the lein was placed. When I called the DMV they even told me the date they would release the lein. It may vary by state but it might be worth a call to your DMV to see how they handle it.

[futurehomeowner?]

excuse the stupid question, but... the lein is placed when the loan is originated?

[jak2136]

Yes that is correct

[raduque]

I had an auto loan a few years ago that at some point as I was paying it off the bank closed/went out of business/sold. They never released the lein or sent me the title. I spent HOURS/DAYS on the phone with different people and banks trying to locate this account/title. The bank that bought out the first bank could'nt find so suggested it might have gone to xxx bank etc etc. Never was able to find it. Finally called the DMV and explained the situation to them and I was told that after 10 years all leins are automatically released. So I waited out the 10 years and then went and got the title from the DMV.

 

That's interesting. My parents bought a van in the mid 90s, and one payment away from paying it off, the finance company went out of business, and none of their accounts were sold. They ended up selling the van for $500 a couple years after it would've been paid off to some guy who buys cars to sell in Mexico, because they couldn't get the title.

[futurehomeowner?]

does anyone know how to find out if there is still an active lien on the title in PA? I have been looking at the MVIC but I can't find anything about liens.

 

Here is the website that I have been searching

http://www.dmv.state.pa.us/centers/motorVehicleCenter.shtml

[Why Chat]

http://publicrecords.onlinesearches.com/Pennsylvania-UCC-Filings.htm

[Why Chat]

Whychat, if you read this, this is the thread that I mentioned in the other car thread.

 

Can capital one legally repo my car since it is past the SOL for PA?

If the OC filed a lien, and if the lien was assigned to Cap 1 on the records when Cap 1 took/bought the account and if the lien is active and has been renewed, then yes, there is a REMOTE possibility. Otherwise NOT

 

Here is the link to search for UCC filings in Pa.

http://publicrecords.onlinesearches.com/Pennsylvania-UCC-Filings.htm

 

Remember, a repo is like a foreclosure-- there must be a filed lien IN FORCE to be able to repo or foreclose. Mortgage liens are on file in the County where the property is located chattel liens are on file in the UCC ( Uniform Commercial Code) filing system of your State.

[futurehomeowner?]

thank you for all that have responded and thank you whychat for sending a message.

 

I have a few questions and please someone tell me if I have the loan process down.

 

I find the car and get approved for the loan.

The bank pays the car dealer and makes an agreement with me to repay.

In the agreement to repay they put a lien on the title so they technically own the car until I pay it off

if I fail to pay then they can repo the car because they have a lien on it which gives them the right to the car

The lien is good for X amount of years regardless of the loan status.

If the lien is good for X, then at X year they need to renew the lien?

(if they do not renew the lien, can they go back later on and renew it or is it like a judgement in that they have to renew before it expires?)

If the above is true, If at X they decide or fail to renew the lien the title is technically owned by me?

If at X+1 I fail to repay but they have not renewed the lien then they are legally not allowed to repo the car?

At this point the only recourse they would have is a suit on the loan, but they lost the rights to the car?

 

Please chime in if any of the above is wrong. I have read so much about my situation that I just don't know what to do.

[Why Chat]

I don't know what State you are in, on my website each State is listed and internal links will direct you to the available statutes. Otherwise, go to Google, type in the name of your State and" Installment Sales Contracts"

 

Unlike a property lien which stays on record until released, a chattel mortgage is invalid/void/obsolete after a certain number of years unless renewed. In most States it must be renewed BEFORE its expiration.

 

Take for example a Co. that has financed its equipment and machinery, the financing co. must renew before the lien expires, otherwise ANOTHER lender can jump ahead of them with a new lien and they would become secondary.

 

Or you buy a car, finance it, a lien is recorded, and in the meantime you get a loan out with someone else with the car as collateral, the new lender files a lien, he is secondary UNLESS the primary lender does not renew his lien in time.

 

If you searched the UCC records for your name under current and expired liens and found nothing under current and an expired lien, then you would have to search your State's UCC rules to see if the original lien holder can refile and what the requirements would be.

 

If you PM me your State, I will try to locate that data for you, but ONLY if you have found your name in the EXPIRED liens.