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Hi guys I’m in need of a little guidance. My car was repossessed a few months ago. I had a total of about 10k left in payments on the car. It’s showing up on my CR stating Recent Balance: $10,314 as of 6/4/22 —— Date opened: 6/2016 —— Status: Repossession $1753 past due as of June 2022. I am currently in the process of getting my personal information cleaned up on my credit. I’ve deleted old names, addresses, etc. I want to ask you kind people; what is my next move to getting the repossession off of my report? 

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I cannot think of a single thing that is not a snarky response.  If you can't get them to settle and removal of the TL, only time will be to your benefit.  Have you fixed the circumstances that lead to you not being able to make the payments? 

Edited by parrothead1
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12 hours ago, NicholasRichardson said:

Hi guys I’m in need of a little guidance. My car was repossessed a few months ago. I had a total of about 10k left in payments on the car. It’s showing up on my CR stating Recent Balance: $10,314 as of 6/4/22 —— Date opened: 6/2016 —— Status: Repossession $1753 past due as of June 2022. I am currently in the process of getting my personal information cleaned up on my credit. I’ve deleted old names, addresses, etc. I want to ask you kind people; what is my next move to getting the repossession off of my report? 

 

I understand you WANT it removed however I don't think you understand this is valid accurate information regarding the status of that account and there is no legal basis to have it removed.  As everyone else said:  you can settle and include deletion as part of the settlement if they will even agree to it.  These days many creditors have a hard line stance against doing that and since yours is brank spankin new chances are slim to none they do agree.

 

You have another problem in that if there is a deficiency balance on that account after they auction the car they could sue you for that.  Has the car been sold yet?  

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On 7/21/2022 at 9:54 PM, NicholasRichardson said:

Hi guys I’m in need of a little guidance. My car was repossessed a few months ago. I had a total of about 10k left in payments on the car. It’s showing up on my CR stating Recent Balance: $10,314 as of 6/4/22 —— Date opened: 6/2016 —— Status: Repossession $1753 past due as of June 2022. I am currently in the process of getting my personal information cleaned up on my credit. I’ve deleted old names, addresses, etc. I want to ask you kind people; what is my next move to getting the repossession off of my report? 

I used to work in Auto finance collections, so I will give you some of the answers you can expect to the question "What do I have to do to get you to take the repossession off my credit file?"

 

1 - "We had to repossess the car to get your attention. It stays."

 

2 -  "No. Period."

 

3 - We won't take it off, but when the account is paid off in full we will change it to "Paid Repossession" status.

 

BTW - did you redeem the car or was the car sold at auction? Please tell me you redeemed the car. If it was sold at auction, expect a deficiency balance and expect to be sued over it almost immediately.

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1 hour ago, Flyingifr said:

If it was sold at auction, expect a deficiency balance and expect to be sued over it almost immediately.

Just curious, what happens if the car sells for more than the amount due?  In today's weird car valuation world, it could easily happen.

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21 hours ago, A Credit Ed said:

Just curious, what happens if the car sells for more than the amount due?  In today's weird car valuation world, it could easily happen.

Never happens. If you aren't upside down anyway, you certainly will bet the auction because cars sell for way below Fair Market Value at the auction, and if it's not a Public Auction, the car could be sold for $1 or maybe just a little more if someone attached to the sale (repossessor, Collections people at the bank or others) has a relative who needs a cheap car.

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On 7/24/2022 at 12:45 PM, Flyingifr said:

I used to work in Auto finance collections, so I will give you some of the answers you can expect to the question "What do I have to do to get you to take the repossession off my credit file?"

 

1 - "We had to repossess the car to get your attention. It stays."

 

2 -  "No. Period."

 

3 - We won't take it off, but when the account is paid off in full we will change it to "Paid Repossession" status.

 

BTW - did you redeem the car or was the car sold at auction? Please tell me you redeemed the car. If it was sold at auction, expect a deficiency balance and expect to be sued over it almost immediately.

I had lost my job during Covid and recently got a new job and that’s why I wasn’t able to make the payments.

 

My original creditor is Ally Financial. I haven’t contacted them yet, nor have I redeemed my car but they haven’t sold it at auction yet (only reason I know this is because it’s not stated on my credit that it has sold.) Now that I have a stable job, with stable income I want to make it right and hopefully redeem the car, based on your advice that seems like my best bet at the moment. 
 

What would be the best way to redeem the car. In terms of contacting them, what’s the best way to word it to the original creditors that I would like to redeem it, or just simply ask? Do you think its too late to redeem the car since it’s been over a month? 
 

If I’m not able to redeem the car, what’s my next best option? I obviously don’t want to be sued, but is there a way I can make payments on a deficient balance or will it have to be paid up front?

 

Thank you for taking the time to respond 

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You redeem the car by making all the past due payments plus paying all the costs of the repossession  - repo fee, storage, auctioneer, etc. In some States the right to redeem is enshrined in law. In almost all States when the car is sold at auction they must notify you of that fact, how much they got for it, what fees were subtracted from the sales proceeds, how much was applied to the debt and how much you still owe, In many States, failure to provide this notification causes them to lose the legal right to come after you for the deficiency. Check your State laws on this, it is obviously important.

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If the car has not yet been sold, then you need to contact them about trying to find some manner of redemption...and if you truly cannot afford the car to the term expiry, then after you have redeemed it, sell it and get something you CAN afford. 

 

Do not expect a discount on the redemption.  Even a POS will quickly sell once it hits a lot.  However, you MAY be able to spread the deficiency across a few months to go with an upfront payment that equals at least the current month plus between a third and a half of the deficiency...

Edited by centex
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On 7/25/2022 at 10:06 AM, Flyingifr said:

Never happens. If you aren't upside down anyway, you certainly will bet the auction because cars sell for way below Fair Market Value at the auction, and if it's not a Public Auction, the car could be sold for $1 or maybe just a little more if someone attached to the sale (repossessor, Collections people at the bank or others) has a relative who needs a cheap car.

 

Well, just yesterday, the LA Times ran a story that claimed, in today's crazy car market, in fact folks *are* getting checks for repossessed cars. FTA:

 

Quote

Car prices have soared so high that Robert W. Murphy, a Fort Lauderdale, Fla., attorney who represents borrowers, said he even had two clients get paid several thousand dollars each after their cars were repossessed and sold at an auction.
 

That’s because, by law, proceeds exceeding the loan recovery amount must be returned to the borrower.


“Neither put any money down, no equity, no skin in the game, and they both got checks,” Murphy said.

 

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21 minutes ago, stickyfingers said:

 

Well, just yesterday, the LA Times ran a story that claimed, in today's crazy car market, in fact folks *are* getting checks for repossessed cars. FTA:

 

 

These times are the exception, not the rule. The rule (over many decades) has been the minute you drive the car across a sidewalk, you are probably upside down in equity.

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