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Charged off auto loan - want to work with bank to settle

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LiveFree



Joined: 05 Oct 2009
LiveFree's page
Posts: 3



94 Magic Points

Subject: Charged off auto loan - want to work with bank to settle
 
Posted on Mon Oct 05, 2009 7:58 pm  

Hello,

I am the primary on an auto loan with my ex-gf. She took the car and stopped making payments. One year later, I am in the process of getting physical possession of the car and have contacted the bank to make good on the loan.

The bank is offering to settle for 50% of the amount owed if paid in a lump sum. I have tried every avenue and cannot get that amount together (primarily because I have a charge off on my credit report, even though every other account is spotless).

Since I can't settle with a lump sum, the bank wants me to begin making regular payments on the full amount due until I can gather a lump sum to settle.

I do not trust the bank and do not trust they will allow me to settle in a few months when I can save up the lump sum. I would like to agree to a settlement of 50% of the amount owed and make monthly payments towards that instead of the full amount owed like they are asking. So far they have refused.

They have sent me a canned settlement letter saying if I paid the lump sum 50% right now, they would remove the blemish from my credit report. However, I can't get them to put in writing any other kind of agreement (or even to say that I will be allowed to settle in a few months after making regular payments).

Do I have any ability to force their hand or am I at their mercy? I foresee that once they start getting regular payments from me, they will refuse to settle in the future and will expect the full amount paid off.

Thanks!
goodnatured



Joined: 03 Nov 2007
goodnatured's page
Posts: 3931



356 Magic Points

 
Posted on Tue Oct 06, 2009 1:37 am  

Depends on how bad they want their money, I would try and force their hand. Think about it, it is either accept your offer or lose out all together, I think they will give in eventually if you push the issue.

Is it a local bank? If you don't mind who is it?
Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1238



28944 Magic Points

 
Posted on Tue Oct 06, 2009 6:48 am  

Hi,

Well, it is a complicated situation. You have to try and convince the bank of your offer and hence send them a counter debt settlement offer letter stating your terms for paying off the debt. Or else try to contact your former girlfriend and convince her to give half of the lump sum that the bank is asking you to pay.

You said you have a 'charge-off' in your credit report. Find out the name of the CA to which your account has been sold by the creditor. Once, you do that, negotiate with that CA regarding the removal of the negative item from your credit report through a
pay for delete letter. Always remember to send the letters trough certified mail. Your credit report will be in a better state since everything else is perfect in your report. Also check if the 'charge-off' has passed 7 years or not. If it has, then it should be removed by the credit bureau.

I do not think that you are in a position to force the bank. In case you are unable to negotiate with them, the bank might repossess your car. After all, you cannot compel the bank to accept your settlement offer. It lies on the bank's discretion.
_________________
All the Best Smile
Justin
LiveFree



Joined: 05 Oct 2009
LiveFree's page
Posts: 3



94 Magic Points

Subject: thanks but...
 
Posted on Tue Oct 06, 2009 12:45 pm  

The loan hasn't been given to a CA yet. It is still at the bank I took the loan out from. It is a national chain bank.

They have stated they do not want the car. They cannot find the car. My ex is broke and cannot come up with a few dollars, much less half of the lump sum. In fact, I am going to have to pay to ship the car from her state to mine. At least she has agreed to allow that to happen, but again cannot pay anything towards it.

The bank has stated that unless I pay, they will get a judgment against me in my county and put a lien on my house. They have agreed to delete the line from my credit report if I can pay the lump sum requested. Can I still negotiate with a pay for delete letter with the bank to try and start making payments towards a settlement? I don't want to make payments on the full amount.

Also, the title to the car is in my name AND my ex-gf's. If she is uncooperative, I could be stuck with a title/car that I can't sell, correct? I think the bank should be willing to change the title to my name only if I am the one paying off the vehicle.

Maybe I need to hire an attorney to negotiate for me because I'm not clear on what I can do to negotiate when threatened with judgments and liens, even pay garnishing.
LiveFree



Joined: 05 Oct 2009
LiveFree's page
Posts: 3



94 Magic Points

Subject: Anyone?
 
Posted on Wed Oct 07, 2009 4:12 pm  

Someone else has to have negotiated settlement with a bank! Do you have to take their pay on the full amount BS if you can't come up with a lump sum for settlement?
fireyone



Joined: 26 Feb 2008
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Posts: 4246



80 Magic Points

 
Posted on Wed Oct 07, 2009 4:35 pm  

Live free, It seems your hands appear to be tied at the moment. The fact that the bank still owns the car loan is really in your favor and I would do everything possible to try and work with them. Getting a negative listing off your report once it has been sold is nearly impossible and do severe damage to your credit score.
As for the name on the title, if a judge ordered the car returned to you then they will also be able to make her sign off on the title and I would be sure to ask that this be done.
Try to go on and make regular payments with the agreement if you come up with the settlement amount they will take that instead. I think they could have at least let you make payments on the settlement amount instead of the full amount,especially since they do not want the vehicle back. Have they told you why they will not settle for this?
Frankt
Guest






 
Posted on Tue Nov 24, 2009 11:55 pm  

Question is: do you get the pink slip after patments are done?
cslpn
Guest






Subject: uncooperative ex trading/selling vehicle
 
Posted on Sat Jul 10, 2010 7:24 pm  

My exboyfriend and I have a vehicle which I am paying on and I can not keep it because my daughter who is 4 years old cannot ride in the front seat, it only has a front seat there is no back seat. He is unwillingly refusing to sign off the title it I trade it in or sell it. Is there anyway I can force hime off the title?
TROB
Guest






Subject: Charge off
 
Posted on Wed Dec 08, 2010 10:09 pm  

The finance company that my car is financed through has offered a settlement of 85% of the loan and the won't budge on the offer. I have paid them during the course of the loan $10,000.00. However because I fell behind they are saying that this amount will not count towards the settlement and the want $9100.00. The value of the car is worth way less than that and I can't afford to pay 9100.00 to them especially when the car engine is gone. What should I do?
bj
Guest






Subject: auto charge off
 
Posted on Tue Apr 05, 2011 1:42 am  

i have a vehicle that has been charged off for several years now, but it does not work and i want it removed from my property, several peoples have asked to buy it but i can't sell without the title could i take it to a salvage yard? or how can i obtained the title since it has been so long?
6roses
Guest






Subject: charge off/reposession?
 
Posted on Sat Aug 20, 2011 5:42 pm  

my car is going to be charged off for $750.00 8/31/2011. Who does it go to after it is charged off? And how do I find out if it will be reposessed and can I still make arrangements to settle the debt?
PENELOPE MIRANDA
Guest






Subject: CAN STILL GET THE PINK SLIP TO MY CAR ONCE IT IS CAHRGED OFF
 
Posted on Fri Nov 18, 2011 11:43 pm  

I AM TRYING TO GET THE PINK SLIP TO MY CAR . I ONLY OWE $881.05. WHICH IS THE LATE FEE ON THE CAR . THIS IS NOT THE
CAR NOTE MONEY I PAID THAT.
lisa
Guest






Subject: charged off auto loan
 
Posted on Tue Jun 26, 2012 4:38 pm  

We have a car that we paid $9000 down on and then made payments for 1 yr amounting to $5000 more. I called to make a payment and was informed it was charged off. we have very bad credit and dont see any way of refinancing it. SInce it has been charged off will the finance co insurance company try to repo it or what happens next?
Corinthians
Guest






Subject: auto chargeoff
 
Posted on Sun Jan 27, 2013 4:11 am  

I have a car that has been charged off I will. Be able to pay it off in 45 days should I wait u til I have the money I. Muu hands before starting the negotiation. Process.

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