Is it gonna look bad if I sell the car?

[newbeg]

Ok,
I am meeting with few atty to see my options for CH7, I have car that based on kkb worth 6-7K but it does need engine rebuilding that I got quote would cost $4.4K, I can sell the car for parts and with the money buy something reliable, but the question , is that would look bad? I have the quote from the mechanic and I own the car.

Thanks

[StartingOver08]

You are allowed to sell your stuff before filing BK. Keep a record of the car's repair estimate, the value, who you sold it to - and keep receipts. You might not need all of this, but it is best to have it. I would also photograph the car for your records, just in case.

The issue gets complicated if you sell to an insider, so it is best to sell to a third party.

[kenshirley]

Do Not Rely on KKB for your values. The market is upside down on used car values as are the real books. And the Internet sites are just wrong period.
According to KKB recently my 2008 corolla is worth some $14.5K.
Funny, my car only retailed for $14.2 (I paid $12.1K in the deal).
And I know how to use the books~My father was a dealer.

[newbeg]

that is good,
where can I get TRUE value for my car?
If someone can PM me that would be great so I can send u the car model and miles.

[fltoo]

This is such a frequent question and someone always says, do not sell to insiders as it is not allowed or complicated.

This is NOT true. You can sell anything to whomever you want, including insiders, as long as it is for market value. Spend the money on living expenses only and keep receipts.

[Houseofcards]

so - can i sell a car ($2500) and apply the proceeds to the second mortgage on my house ?

[eddiep]

Yes you can sell your car and pay your mortgage payment or any other living expenses. You only need to be concerned about making a luxury purchase or repaying loans from family or friends.

Sellling your car to make a mortgage payment sounds like a very expensive bandaid. Are you experiencing a temporary income shortage?

[Houseofcards]

Actually - yes there is an income shortage. But the reason is because we are filing chapter 7 soon and we have 5 vehicles all paid for. We can exempt 2. The one i am selling is one i would like to unload - actually would be willing to "surrender" it to the BK estate if we still have it on the filing date.

Our house - we are wanting to keep. We have 1st owing $211k and 2nd owing 81k. The house is worth about $245k. Looking forward to 23 years from now I when feel that we will still be paying on the second (interest only and can't afford to pay extra principle). I don't think Obamanomics is going to help people in our financial shoes and figure it is a way to chip away at the second while we can.

I may not be seeing the big picture though - but I kinda have an offer on the car.

[eddiep]

So are you saying that you want to pay extra on the 2nd, not just your monthly payment? That might be different, you should ask your lawyer before you do that.

Have you contacted your bank about a loan modification yet?

[Houseofcards]

Yes - we want to pay down extra principle.

We tried to refinance last November - CW said no equity - no refinance.

Our attorney has offered to look at doing a loan mod for us - but my research so far shows that any potential offers won't address our immediate concerns ( under water - but can't strip the second in a 13 ).

I will look at the loan mod as a potential fix but what I see coming is kinda like a car salesman technique to address PAYMENTS and not PRICE.

I think the end result wil be something that may look like it is saving us money now - but cost thousands more over the life of the modified loan.

[eddiep]

That is so true about the loan mods, the bank always wins and they are acting like they are doing you a favor by charging you more. From what I hear CW is the worst! but I guess BoA is taking over and they are easier to deal with, you may want to try it yourself once bk is over with and BoA takes over servicing of CW loans.

I would run it by your lawyer before you pay anything extra on mortgage