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Loan Options?

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This doesn't really fall under foreclosures but I'm not sure where else it would go...

 

About 5 years ago we walked away from our house and were able to settle with Fannie Mae on a deed-in-lieu of foreclosure.  However, at the time we had a 2nd mortgage on the property.  We were able to work with our local lender and they offered us a loan (with a used car as collateral).  The original amount we owed was appoximately 50k.  The loan was for 10 years but amortized over 5 years (or maybe I have that switched around).  Anyways, our 5 years are up and now the loan matured and we owe around $30k still.  We have never missed a single payment.

 

They pulled our credit and initially indicated our scores do not warrant a renewal of the loan, so wondering what kinds of options we would have?  Unfortunately they have the upper hand since nobody is going to loan us $30k with limited collateral (and scores in the low 600's)...we did indicate we would be able to add our small (clear titled) travel trailer as additional collateral.

 

I imagine they could go after us and attempt to get a judgement but I'm not sure that would get them their $$$ any quicker since we'd probably just end up making payments against that (we honestly don't have a ton of liquid assets just laying around).

 

Any thoughts, options, suggestions?

 

Our last option is to file BK but we can afford payments, just not sure where to go to?

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What is keeping your scores down?  A 5-year-old mortgage that went south is going to hurt for the entire time it reports, but I would have expected some improvement by now unless you've had other more recent issues.

 

How soon do you have to come up with the $30k?

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1 hour ago, cv91915 said:

What is keeping your scores down?  A 5-year-old mortgage that went south is going to hurt for the entire time it reports, but I would have expected some improvement by now unless you've had other more recent issues.

 

How soon do you have to come up with the $30k?

High utilization and some recent lates (unrelated to this loan), plus some small collections I'm working on getting cleared out.

 

They haven't indicated a timeframe but the loan matured on 2/15 so I imagine it's due immediately (although as long as I'm trying to work with them I think I can at least get 30 days).

 

So here's my question - if we just indicated we can't come up with the $$, what can they do?  Obviously take us to court, get a judgement, but then what?  They can try to garnish wages, go after assets, etc. but there are limits to that as well, correct?  Wouldn't they be better off just negotiating a loan with us, especially since we've already shown great payment history?  Why would they go through all the extra BS?

 

It's not like we have cash laying around that's hidden anywhere...and both my spouse and I have very good, consistent jobs with good income.  If they tried to push it on a judgement we'd probably consider BK and then that doesn't get them anything potentially...

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what have you done to address the recent lates (e.g., goodwill letters)? Any chance you can sell something or budget to get utilization down? There are some good threads in the money management subforum that might help:

 

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Just thought I'd give everyone an update on this.  We were able to negotiate a new loan with a family member as a co-signer.  Had to make a fairly significant payment on it but fortunately it came right at annual bonus time so we got lucky lol.

 

Now we have a better reporting loan at a lower monthly payment and will eventually have it paid off!

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