Anyone financed with Toyota?

[Tromploi]

I thought in a reaffirmation though, you would be held liable for the difference between what they sold the vehicle for and what you owe, so if you have enough equity in it shouldn't be too much of an issue?

I just read today on a Consumer Protection site FAQ's:
If you have reaffirmed, you could then be required to pay the difference between what the collateral is sold for and what you owe.

Is that not correct?

[dingdong]

I am not a pro on reaffirmation, but assuming that is true and it most likely may be, if they sold the car for 20,000, and you still owe 8000.00 on it, you are on the hook for 8000.00, if you ride through, or keep making payments, wel...

Maybe HHM can give you some insight?

Perhaps if you call Toyota and ask for someone in the BK dept and see if they will give you statistics on how many cars are repo'd while the buyer is still current?

It just seems to me they are trying to get you to reaffirm by playing on your fears, and in turn making their side less risky while making your side more risky by reaffirming the debt.

[ansky0007]

If you owe $12000 and the car is worth $20000, Then you just sell it and keep the difference. This is a no brainer with this much equity.

In reality if the car is really worth $20,000 and you only owe $12,000 the trustee might try to take it from you if you cant exempt the equity.

If they allow you to reaffirm it its silly not to as I mentioned already. There is NOTHING to loose. If you lost your job and could not afford to keep it you can sell it and keep the difference. Its really a win win situation.

[Tromploi]

I am not a pro on reaffirmation, but assuming that is true and it most likely may be, if they sold the car for 20,000, and you still owe 8000.00 on it, you are on the hook for 8000.00, if you ride through, or keep making payments, wel...

Maybe HHM can give you some insight?

Perhaps if you call Toyota and ask for someone in the BK dept and see if they will give you statistics on how many cars are repo'd while the buyer is still current?

It just seems to me they are trying to get you to reaffirm by playing on your fears, and in turn making their side less risky while making your side more risky by reaffirming the debt.

But if I owe 12K, and they sell it for at least 12K, wouldn't we be even? Anyone know about this? I will call my atty tomorrow and let you all know what he says too.

I did call Toyota and she said they are not "currently" taking back vehicles on which payments are current. And yes, you are right, that's exactly what Toyota is doing. Which isn't bad business for them.

I know I am over thinking this, I tend to do that, although this is a HUGE decision.

[ansky0007]

But if I owe 12K, and they sell it for at least 12K, wouldn't we be even?

Yes, You would not owe anything if they sold it for $12k or more.

[Tromploi]

Okay well then this seems very clear right? Reaffirming secures the truck, and my equity, helps rebuild my credit history, etc. Unless they are total idiots they can sell that truck for more than 12K.

Thanks so much for reading all these posts everyone!

[mgmadara]

Okay well then this seems very clear right? Reaffirming secures the truck, and my equity, helps rebuild my credit history, etc. Unless they are total idiots they can sell that truck for more than 12K.

Thanks so much for reading all these posts everyone!

Reaffirming is a mistake. There is no guarantee that reaffirming will help you build your credit, even if it is currently being reported to the credit agencies. If you want to secure your truck and it's equity you only need to make the payments on time. They will not repossess your truck if your payments are being made. If you reaffirm and lose your job how easy is it going to be for you to sell your truck in a down economy with unstable fuel prices so you can pay off the loan? Are you willing to take the gamble that you can sell the truck? Are you willing to take the gamble that Toyota will sell your truck for what it's worth? They can sell it at a loss knowing that you will be responsible for the difference. What if you wreck the truck and for some reason your insurance company doesn't give you enough to pay off the loan?

When my lawyer told me not to reaffirm my house or my Durango (which also had a lot of equity) I thought he was crazy, but he was right. My Durango was paid off with no issues and I am thankful that if need be I can walk away from my house with no further debt incurred, especially in this economy. Not reaffirming has given me peace of mind.

[Tromploi]

Thank you for taking the time to write that out so clearly. After sleeping on it (well tossing and turning on it, amongst other things) I don't think I am going to reaffirm. I love the truck, and want to keep it, so I will keep paying on it on time. If Toyota shows up to take it, maybe I can bake the guys cookies to change their minds. Seriously, I just think this is the way to go for me.

Thank you again for all of your help!

[shabam]

The two scenarios I can see are that:

1. If you reaffirm you have the legal security of knowing they will not take the truck as long as you keep your payments current. In your situation if you failed to make the payments they would simple reposes the truck and sell it. With that much equity you would probably not owe anything.

2. You don't reaffirm but also do not have any security that they won't simply pick up the truck and sell it. Chance of this happening is low but then again it could happen. Regardless of whether you made payments or not. Same way you can hand it back at any time, they can pick it up at any time.

You also should take into consideration what is the equity exemption (limits) for your state. If you have too much equity the trustee may very well sell the truck anyway and keep the equity for the creditors.

[Tromploi]

Shabam, exactly what I thought.

We had our 341 on Tuesday, and put the car into our wild card. Trustee already filed report of no distribution, so I think I am okay there!?