Credit Union re-affirmation attempt failed

[Keebler]

We've got this truck I'm trying to keep because it is cheap and fits our family but the Credit Union won't budge on this cross-collateralization stuff.

It's worth about $5,000 but the Credit Union sent my attorney a reafirmation agreement for almost $11,000 because that's the total we owe them on different accounts.

I'm not crazy and I don't intend to reaffirm that much debt on this vehicle -- NO WAY!


This truck had the engine fail and instead of having it repaired we replaced it last winter with a brand new engine I bought on eBay. I've maintained it myself with the intent of keeping it forever so it's got good tires and all and we don't cut corners when it needs to be repaired. It looks really good and it should last us a long time!

A week or so ago the transmission started slipping and rebuilding that will cost a bit but I'd rather have that done than spend the same money on a junker.

I asked my attorney to try and negotiate a price for redemption including the fact that it's broken but he pointed out I needed to have the money available in a lump sum within 30 days. When I couldn't say for sure I was going to have the money he told me he wouldn't negotiate.

What can I do to help make the credit union aware of the sad state of their collateral? They're almost 1,500 miles away from here in a different state too. What can I do to increase the odds that they abandon it here due to the low value and the high cost of repossession? There's no way its worth the cost of repossessing it.

I can't get any sort of loan to replace it at any interest rate and it'll take many months to save enough to replace it. In the mean time we'll have nothing and I hate to waste money on a junker. There must be a way...

[JRScott]

Unfortunately CU are much harder to deal with than banks.

It is unlikely they'll accept any agreement for less. Basically I'd give up on trying to reaffirm it.

Look around for a junker and see about getting it for time being. Then hope that they will not come get the truck due to expense, after all they have to come or their agent has to. It doesn't happen much but there is a slim possibility they'll never come get it.

[danaf]

I wouldn't reaffirm either. Either they get your car payment or nothing.

[Cali]

I agree with both JR and dana.

[AngelinaCatHub]

I agree with all the above. Keep paying on the car note only and mark every check with it's account number. More than likely the pay through will not stop after the car is paid off even after bk so that you can get a clean title. It is worth a try. If you plan on keeping it forever, you don't need a clear title. Not even to junk it. 'Hub

[StartingOver08]

Keebler,
Did you try calling the CU yourself or did you have your attorney call the CU about your vehicle.

I am asking because when my attorney's office contacted the CU the agreement came through with the Cross Collateralization - I refused to sign it with that and called the CU BK dept myself. We had a nice little discussion, reworked the agreement without the cross collateralization and they are sending it to me to sign. At the same time, I got the payments reduced nearly $100/mth for only a 60 day extension (and my interest rate remained the same).

Of course, this is subject to the written agreement reading in accordance with our verbal discussion. I shall know in a couple of days when the agreement gets here, but I am not that worried about it because if it is not exactly as we discussed - no reaffirmation.