Anyone ever use a loan broker specializing in pre Bk7 discharge?

[lomalindagt]

My Chapter 7 is being filed by an attorney electronically this weekend.

 

I will not reaffirm my car, but plan on paying to retain with the balance discharged. I'm upside down by about $4,000 on a 2011 Corolla, but have never been late on payments.

 

My attorney has suggested I not reaffirm, and I can't redeem and a 722 redemption is not in my best interest.

 

I was referred to a loan broker who specializes in pre-discharge and post-discharge auto loans. I think If I went on my own to a dealership the best I could do is 14 to 18 percent apr on a new car (just want a Honda Civic).

 

I spoke with this broker. At first, I thought he represented lenders and was paid by them per loan, but he says he is actually paid by dealerships he has a relationship with. I explained the information on my credit reports and income, and he was confident he could get me financed at 11 to 12 percent APR and to submit an application once my petition is filed.

 

He says he in essence cuts out the sales staff in deals, deals directly with the F and I guys at the dealership, and always gets his customers better financing. He says he handles price negotiating, gets complete terms from the dealership and if I don't like the deal I just walk.

 

Has anyone had any experience with these type of brokers? I told him I would have $2500 down on a $20,000 purchase, and said it didn't matter, that he routinely finances with zero down. I found that advice somewhat disturbing.

 

My credit bureau history is more than 25 years and I had stellar credit up until becoming disabled in 2008 and having to resign my $70,000 a year job. I should have filed Chapter 7 in 2010, but became hospitalized and had to pull out and get a refund from my attorney. The benefit of filing so late is that my derogatory trade lines will fall off sometime next year even when listed as IIB.

 

From 2009 until 2003 I had zero positive trade lines, so when I bought this car I got hit at 24 percent interest. Since then, I have two positive trade lines for credit cards and a 15 month history of paying on time for the present auto loan. I routinely get auto refi offers in the 10 percent range, but didn't refi knowing this Chapter 7 filing was coming up.

 

Any advice would be greatly appreciated.

 

And I am very grateful for the experiences shared here on this forum.

 

 

[MarvBear]

ummmmmmmmmm how would this broker get paid for doing my job?

[lomalindagt]

ummmmmmmmmm how would this broker get paid for doing my job?

That's one of my concerns. I'm assuming he gets a cut for commission and some of the dealer income from the financing?

 

I have many concerns with this guy, but he has quite a few positive consumer reviews and is referred by many Southern California bankruptcy attorneys, according to his website.

 

I could understand it if his relationship was with lenders and receive a commission on closed loans, but he says he is paid by the dealers.

 

I'm very tempted to steer clear, but his social media presence seems solid.

 

So you never deal with auto loan brokers?

[MarvBear]

No, I will not.

[BRBiz]

Take a look around the boards.. Many many people get auto loans the day after BK but I don't think I have seen any one with a 11% rate. So I would trust this at all.

[mk_378]

There's no reason for you to try a pre-discharge deal, which are very difficult and expensive compared to post-dischage. Just go to a dealer after discharge. You don't need a broker. Involving more middlemen is passing their paychecks on to you.

 

24% APR and $4000 upside down you should not make another payment on the Toyota. Plan to surrender it at discharge.

Edited June 22, 2014 by mk_378

[lomalindagt]

Thanks for your replies. And, yeah, Marv, I am baffled by this guy's pitch.

 

My Chapter 7 was filed Sunday and I've already gotten predischarge auto loan offers. Anecdotally, they appear to be in the 16 to 18 percent range.

 

And, no, I guess I won't make another payment on my present car. Prior to filing I was getting 12 percent refi offers in the mail with my pre-filing credit.

 

In my court district, I have been told not to expect discharge in my no asset Chapter 7 until November. I expect the lender will want this Corolla back a tad sooner than that!

[MarvBear]

I expect the discharge date mentioned is very close to being accurate

[BRBiz]

Thanks for your replies. And, yeah, Marv, I am baffled by this guy's pitch.

 

My Chapter 7 was filed Sunday and I've already gotten predischarge auto loan offers. Anecdotally, they appear to be in the 16 to 18 percent range.

 

And, no, I guess I won't make another payment on my present car. Prior to filing I was getting 12 percent refi offers in the mail with my pre-filing credit.

 

In my court district, I have been told not to expect discharge in my no asset Chapter 7 until November. I expect the lender will want this Corolla back a tad sooner than that!

The lender can't repo the car till discharge with out the court approving it first.

[Kuuner]

 

 

Thanks for your replies. And, yeah, Marv, I am baffled by this guy's pitch.

 

My Chapter 7 was filed Sunday and I've already gotten predischarge auto loan offers. Anecdotally, they appear to be in the 16 to 18 percent range.

 

And, no, I guess I won't make another payment on my present car. Prior to filing I was getting 12 percent refi offers in the mail with my pre-filing credit.

 

In my court district, I have been told not to expect discharge in my no asset Chapter 7 until November. I expect the lender will want this Corolla back a tad sooner than that!

The lender can't repo the car till discharge with out the court approving it first.

 

 

The court would have no reason not to approve it. Lender files for relief, has hearing, gets relief and repos in 30 days (Give or take), or they wait for 120 days. Probably won't file for relief but they could.

[NewbietoFinance]

Thanks for your replies. And, yeah, Marv, I am baffled by this guy's pitch.

 

My Chapter 7 was filed Sunday and I've already gotten predischarge auto loan offers. Anecdotally, they appear to be in the 16 to 18 percent range.

 

And, no, I guess I won't make another payment on my present car. Prior to filing I was getting 12 percent refi offers in the mail with my pre-filing credit.

 

In my court district, I have been told not to expect discharge in my no asset Chapter 7 until November. I expect the lender will want this Corolla back a tad sooner than that!

 

Don't use a broker, You can get financed easily on your own, and even if you get a semi-bad rate to start, you can refi pretty quick, I bought right out of BK7 @ 16%, and refi'd @ 6months to 2.9%.