Re-affirm car PROS and CONS

[sguerra923]

Hi guys/gals,

I wanted to reaffirm my car loan but wanted to see the pros and cons of doing so. The pros and cons that I see:

Pros: Helping my credit score with consistant payments.

Cons: If I don't make the payments anymore it will hurt my credit score and car gets taken away and repo on my credit report.
I heard that the trustee can take the car and use it for repayment of my debt if I reaffirm it? Is there truth behind that statement?

I don't know to much about this situation so if anyone can continue the list that would be great. Basically, my main purpose in doing this is to rebuild my credit so I can purchase a home in about 3 years.. I haven't had any credit card offers come in at its been about 7 months of being discharged.. thanks in advance!

[hamburgervol]

Most important question...what do you owe and what is it worth?

[HHM]

Easy answer..

Pros: None

Cons: see list of pros.

Pros: Helping my credit score with consistant payments.

Not necessarily, unless the reaff specifically states that credit reporting will continue, the reaff, on its own, does not guarantee such. That is what redemption financing is for

Cons: If I don't make the payments anymore it will hurt my credit score and car gets taken away and repo on my credit report.
I heard that the trustee can take the car and use it for repayment of my debt if I reaffirm it? Is there truth behind that statement?

[sguerra923]

Most important question...what do you owe and what is it worth?

I owe 15k and it's worth 22k

[debtmonster]

When I spoke with the paralegal today about my cars, I spoke with her asking how much the bank would take. She told me that that it wasn't up to the bank if I wanted to re-affirm and that it was up to THE JUDGE. So if you owe $15,000 on a car and KBB says it's worth $5,000, you get the option to pay $5,000 for the car + whatever your attorney will charge to do the re-affirmation paperwork. In my case they wanted an extra $625 or so if I wanted to keep the car. I told them no way and to let it go back. I could buy so many other cars out there with less miles for the same or less price.

I didn't know this. I thought the bank could pick and choose what to charge you and if you didn't like it, then you had the option to keep the car or give it back. From what she explained to me, that wasn't the case at all. The judge dictates what the vehicle is worth. So if the vehicle in question was worth $5,000 and you could somehow manage to scrape up $5,000 before your case was discharged, you could buy the car at that value. Most people can't do this and have to get a 24.99% redemption loan.