722

[jeb]

Met with my attorney again today and asked about a 722 for my auto.

He said there are companies that do this and, if so, the lender has to accept the offer - they have no choice.

So - have any of you worked with a company or know of a list of companies that do 722's? - jb

[jribe]

Met with my attorney again today and asked about a 722 for my auto.

He said there are companies that do this and, if so, the lender has to accept the offer - they have no choice.

So - have any of you worked with a company or know of a list of companies that do 722's? - jb

US Bank has a 722 redemption program. I thought about doing that- but it took like 2 weeks for someone to even call me. I ended up deciding to let the car go and get something else. I owed way more than what it was worth, and got something with less miles and more reliable.

Google US Bank 722 Redemption and the site should come up...

[jribe]

as a second thought... are you sure you want to reaffirm? The interest rates on those are pretty outrageous. Like i said earlier- i was going to reaffirm- but heard they'll jack up the rate to 17% plus, so i went and bought a 15k car at a dealer (honda) with low miles and got 4.9%. Those cars run *forever* and it's a killer deal on the interest.

Check out a loan comparison calculator- say they drop the amount you owe (best guess) and then put in the 17-25% interest rate for 60 months.

Then do the same thing with a comparable car price, but a pre BK rate. You may end up with a better deal..

[jeb]

and bought a 15k car at a dealer (honda) with low miles and got 4.9%. - jribe

Jribe, at what stage of BK did you do this?

I talked with several dealers and they were not interested in talking to me once I file. - jb

[jribe]

and bought a 15k car at a dealer (honda) with low miles and got 4.9%. - jribe

Jribe, at what stage of BK did you do this?

I talked with several dealers and they were not interested in talking to me once I file. - jb

I haven't filed yet. Waiting until May. But my credit was that good either..

[jeb]

Just spoke with US Bank and my payments on $4,000.00 less in loan value will be about $10.00/mo more than I am paying at present. - jb

[katie]

Using the US Bank 722 Redemption - both of our truck payments would go up so we are just going to keep paying.

When I ran this by another attorney working on our case, she just wanted us to understand that we would be financing ALOT less and kind of sounded like she thought we should do it anyway. But both of our vehicles are at 1.9% and would rather keep the monthly bills down as I explained to her. The reason we're doing Chapter 7 is because of my DH's drastic pay cut and would rather not add any more debt no matter how small the monthly payments would go up. We just can't afford it right now. We have less than 5 years at more principal but really low interest and would rather do that then right at 5 years with outrageous interest.

I get what she was saying, but right now my main concern is lower payments.

[StartingOver08]

Just spoke with US Bank and my payments on $4,000.00 less in loan value will be about $10.00/mo more than I am paying at present. - jb

You might want to just surrender if the payments are too high and get something else much less expensive until you are on your feet.

Jeb the same thing happened to me, my payments went up when I got the quote from US bank (722 Redemption Funding). When I filed I had two cars. Got one reaffirmed with changing the terms to something acceptable. The other one I was going to reaffirm, but the lender would not work with me on any of the terms (they would not even change the due date!! LOL).

So I called 722 Redemption Funding (http://www.722redemption.com) to see what they would do and the value that they would use was $18,600. Ridiculous! The interest was insane. (I owed my bank $20,500 at 7.49% with 30 mths left). The car was really only worth about $12-13k because of the miles on it - but NADA retail was showing $19,900! So I ended up filing a motion to surrender the vehicle and I bought a little used SUV for $6400 (+tax/tag/title for a total of $6999).

The way I look at it. I got rid of payments of $651/mth. I have a little payment of $265 for 16 months at most with no pre-payment penalty.

You just have to consider what payment is best for you. Signing one of these long term (60 to 72 month) deals is not safe to do in this economy.