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Looking for recommendations for a lender while in Ch13


yehong
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Hello Everyone,

Can anyone please recommend a lender or lenders that can lend while Ch 13 is in progress in the state of Texas? Ch13 has been approved and payments are being made and will continue for next 2.5 years. Attorney would need to file a motion to have vehicle purchase approved from our trustee but I need to see if I could be approved before I file a motion. 

 

Thanks in advance. 

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this is probably an instance where a good F&I person at the dealership can provide advice specific to the vehicle, LTV, and trustee issues in your situation. As a general observation by someone who is not expert on auto financing let me ask, are you sure you need a financed vehicle at this time? What are your options if financing is not an option?

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Current vehicle is more than 13 year old and need a dependable vehicle. That's the only reason for finding a newer dependable vehicle for financing. No cash is available to buy it on cash. Just applied with Auto Credit Express but it was declined.  

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14 minutes ago, yehong said:

Current vehicle is more than 13 year old and need a dependable vehicle. That's the only reason for finding a newer dependable vehicle for financing. No cash is available to buy it on cash. Just applied with Auto Credit Express but it was declined.  

stop applying randomly and find a dealership with the vehicle you want and work with a good F&I person.

 

also, you should post answers to the form posted here:

and Marv will give you his expert input. good luck

 

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I hope I am pasting it in right thread. This is Ch13 in-progress case. Payments are being made and will continue till 2+ more years. 

 

 

 

Credit Application: For auto loan around $22K for a 2016 Honda Odyssey SE with 45K miles. 

Your Age: 46

Your Equifax Credit Score: 
Your Experian Credit Score:
Your TransUnion Credit Score: 647

How long have you been on file with the CRA?s? 20+ years

Previous Automotive Credit History: Very good. Never had a repo. Paid off lease on one vehicle just this month. 


Do you have an open auto loan? Yes but it's a leased vehicle and last payment was pad just two weeks ago. The vehicle is the one we are interested to purchase. 


Will this loan be a trade-in? No
Number of late pays within the last 12 months on the currently open loan? 2-3
Number of late pays within the last 13-24 months on the currently open loan? 3-4
Current open auto loan is financed with? Honda Financial 
Current open auto loan payment is? 390.00
Estimated amount you may be upside down in this vehicle? 0
Rate your payment history on this open auto loan from 1-10 (10=BEST) 10

Revolving Credit History: Very muddy due to Ch13. But was very good before filing. 
Total number of revolving accounts? 0
Total percent utilization overall? 0

Your Information:
How long at residence? 1.5 years
Rent/Homeowner/Live with relative? Own
How long at current job? 1.5 years
Total Provable MONTHLY GROSS INCOME? $8000
Provable via computerized paystub or what method? Paystub

Your Downpayment in CASH: $3000
Rebates not considered; Trade Equity not considered: CASH ONLY PLEASE INPUT.

Does any credit repository contain any Public Record?
Is so, please describe. Yes. Ch 13 filing. 

Does any credit repository contain any Collection Account(s)
If so, please describe. Not sure

New or Used Vehicle you are considering; please describe: Used. 2016 Honda Odyssey with 45k miles.

Your creditworthiness on a scale of 1-10 with 10 being the best: 10
OVERALL credit: In bad shape now due to Ch 13. 
Installment Credit History: Good mortgage payment history, good auto loan payment history, and good credit card payment history prior to filing ch13. 
Revolving Credit History: 20 years. 

Like

 
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What are the fundamental issues with the present vehicle?  Simply being 13 years of age means nothing if the vehicle has been properly maintained.  A few thousand in repairs beats the hell out of a new note and massive depreciation in an already questionable financial situation...

 

And yes, I am serious...of the three Jags, two are almost 16 years of age and have over 350K miles between the two of them.  I would have precisely ZERO qualms with driving coast to coast in either of those.  Same thing holds true with the Miata that is pushing 28 years and a quarter-million miles. 

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No issues at all currently it's in very good mechanical condition but you never know that old of a vehicle to when it will start causing issues. I've had one issue couple weeks ago where serpentine belt broke and I had to have it parked for at least one week till I got it fixed. I didn't have any other ride during those days so had to depend on Uber.  I am interested in buying a 3-5 years used vehicle. 

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A belt is routine maintenance and could be done in a driveway inside of fifteen minutes...someone who KNOWS what they are doing would have it done inside of five minutes but someone who does not do it every day would need to review the mapping to make sure they routed it correctly.  There is ZERO reason for a belt to sideline a vehicle for a week...

 

I trust older vehicles that I have maintained far more than someone else's used vehicle with an unknown history...

 

If I were a trustee, I would be more inclined to approve the earmarking of funds for repair than for a new purchase precisely because there are fewer dollars tied up that way that are not going to the people being asked to take a cram-down on the amount owed. 

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The belt broke because a pulley completely came out so, fortunately due to almost zero mph speed, there was no major damage except new pulley and new belt. But regardless, looks like you all are suggesting us to keep hauling whole family in the current vehicle for another 3 years rather than buying a more dependable vehicle?

 

Edited by yehong
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If you were to get financed in the middle of a BK13, the terms are going to be ugly. You'll be qualified for either Buy Here Pay Here that should have gone to Cash for Clunkers or dealer special finance at almost usury rates. Keep up the maintenance on the old car, you'll be better off financially.

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You are correct that I am suggesting that you keep driving the current vehicle.  You are in a Chapter 13 on the heels of a Chapter 7 which appears to be what brought you to CB many moons ago.  The LAST thing you need right now is MORE debt.  

 

As Indy aptly notes, you are NOT going to get a quality car with a GOOD rate.  You are going to get someone's repo which was NOT cared for and WILL wind up costing you more than putting together a decent fund to deal with the basic maintenance expenses on your current vehicle.  If you have kept up with the maintenance, then the car SHOULD still have many miles left on it...

 

And, worst case scenario...even if you had to drop a new engine into your current vehicle, it would STILL cost you less than going into hock for a different vehicle.  

 

Take the $400-500 per month that a new note is going to set you back, if you even got approved by the trustee and the Court, and figure out how to get an approval to put that into an emergency fund.  

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  • Admin

I have been in the business since 1972.  In all that time I have never completed a RISA for a consumer currently involved in a BK .    I have always needed the Discharge letter in hand.

 

Of all the deals one can do from my standpoint, these are the most difficult and fraught with danger of litigation.  In fact, I don't think one could as  F&I manager without running afoul of TILA and REG Z.

 

To be sure, there are lenders who will do this, but I have always refused to do business with them.  Reputation for us as a group is bad enough as it is.

 

I apologize for not responding sooner, I've had some difficulties to try an overcome.

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