Home
morales asked:
I have a car which I co-signed with my son and he has left it with me. I also have a home in Fl. which the rent doesn’t cover the mortgage by $500. I’m ready to give up on both of them. I’m 50 years old, own the home I live in and the need for new credit doesn’t appear on the horizon.
I have a car which I co-signed with my son and he has left it with me. I also have a home in Fl. which the rent doesn’t cover the mortgage by $500. I’m ready to give up on both of them. I’m 50 years old, own the home I live in and the need for new credit doesn’t appear on the horizon.
Tags: Auto Repo, Home Foreclosures, Horizon, Repurcussions
October 23rd, 2008 |
Tags: Auto Repo, Home Foreclosures, Horizon, Repurcussions
October 27th, 2008 at 5:39 am
Why don’t you SELL the car and house instead of letting them get repo’d? If the bank takes them, they will sell them at auction (and likely get very little) and then you will be responsible for the difference.
In short, you can’t simply walk away from the debt. Either you will pay it back while you are in control, or you will pay it back after the bank takes control.
October 28th, 2008 at 10:27 am
Deficency balance you may be responsibile for.
Utterely screwed credit
October 29th, 2008 at 2:45 am
Sell the car and house. Take a loss if you have to. Better to do it now then struggle month to month.
October 31st, 2008 at 9:25 am
I agree with the first poster.
If you let the home and vehicle go back you will lose control and be faced with the balance due on both if the lenders do not sell them for enough to pay off your loans pus all fees and interest.
This normally results in people owing several thousand dollars and being taken to court. If this happens and they get a judgment, they can and will attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this activity will show on your credit for 7-years completely trashing it. It’s not worth it. Sell the home and the car and find a way to pay the balance due back.
November 1st, 2008 at 6:30 pm
Most of the posters are correct. You really should sell it yourself even if it’s a loss. It will be less than the bank would get. Even if you don’t have a need for credit, you don’t want the banks to put a lien on your property or have to deal with being sued for the balance.
November 1st, 2008 at 10:51 pm
I too agree in some respects with most of the other posters that it would be ideal to sell both, pay the creditors and move on with your life. However, it has been my experience in assisting debtors, that they generally do not have the available funds to make this happen or would not be seeking guidance.
If I understand you correctly you have two houses, one you live in and plan to keep and the other, a rental in Florida, that produces a negative monthly cash flow and you wish to surrender. As laws differ per state, I will assume the house you are keeping is also in Florida and is your primary residence/homestead.
It appears you are either paying $500 monthly for a property you do not want, or accruing arrears, which is already damaging your credit report and positioning you for foreclosure and ultimately judgments, which can be far more damaging than “bad credit”.
As you have heard, foreclosure of the house or repossession of the vehicle will negatively affect your credit score. It is true that nonpayment of these debts will most likely result in judgments being filed against you for the deficiency balances. This will be on your credit report, and eventually could result in wage garnishment or loss of some assets, depending on your personal and unique situation. As it stands, it will be extremely difficult to rebuilt good credit in the near future, though not completely impossible.
It sounds like your first priority is to protect the primary asset you plan to keep, your home. That is a smart move.
As for the other house and vehicle, keep in mind that it does not help to make partial payments unless you have an agreement with the creditor. At some point, should you decide you are unable support this debt and realize that you cannot overcome such, I would suggest you consult with a reputable bankruptcy attorney.
No one wants to file a bankruptcy, however it is a relief set forth for persons such as yourself. Most people who seek this option are good people who have experienced bad situations. It is also true that once you have been discharged of this debt (including judgments) you are able to begin immediately rebuilding new/good credit, which otherwise may be impossible or take many years to overcome.
Remember, you are not alone in this situation.
I wish you well and hope my views have been of some assistance.