Sticky car problems after discharge and no reaffirmation

[willsurvive]

Hi,

We did not reaffirm our 2005 Dodge Caravan on purpose. We owe $16,000 on it, it's worth 10,000 or so. Anyway, we fully intended to just keep paying on it at a monthly payment plan of $337 per month. However, starting in Feb 2009, my dh did not get paid from his employer for a full month, then he was laid off in March, and finally started unemployment (he was finally eligible by then) in late April. Long story short, we have gone from having a good paycheck to virtually nothing (unemployment is only 1,548/month). So . . . I haven't been able to make payments on the van. I am nervous to even call them, but scared they are going to repossess. What should I do? We can't make the entire amount right now due, probably half.

Also, we have thought about just letting it go, but dh does not have employment so we would probably never qualify for a loan and we need a vehicle for me and our 5 kids.

Advice?? Insight, thanks!!

[jessegirl]

Hi and sorry to here that hubby lost his job. In my own opinion I would call the loan dept. ONLY if you intend to keep the vehicle and let them know whats going on and that you intent to keep the vehcile, BUT right now your income has considerably changed and you are looking for them it either lower the payments or let you just make the interest payments for now.

If you haven't signed a reaffirmation agreement you could just let it go and have no obligation to pay anymore. But, as you stated that you want to keep the vehicle. I would call them quick, because they will just come a take the vehicle when you least expect it.

Goodluck.

[Bell30656]

I would get on Craigs List and find something really cheap that runs to put in the driveway. There are many vehicles that you can find for under a $1000 that are reliable. You could also look into the Buy Here/Pay Here option.

[dogbone33]

Buy here pay here are scams to me. You need a ton of money down which you obviously don't have. Have you filed are you done? Our Credit Union is letting us keep our Jeep at 9k (we owed 22k with all late fees and crap). Call them and see if they will work something out. They don't want that car back, they prolly have enough out back!

[HHM]

Call them, call them, call them. If you don't call them you can guarantee that they will repo.

[Bell30656]

Buy Here, Pay Here dealerships have a bad reputation. In some cases it is undeserved. I have a vehicle purchased from a Buy Here, Pay Here that charges no interest. Most importantly, both the owner and I feel we made a good deal.

I paid $5,200 for a 1996 GMC Sierra Grande SLE extended cab pickup with 130,000 miles. The down was $1,000 and the payments are $300 for 17 months. (There was no interest but there is tax, title and all those fees.)

[UhhhOhhh]

Hi,

We did not reaffirm our 2005 Dodge Caravan on purpose. We owe $16,000 on it, it's worth 10,000 or so. Anyway, we fully intended to just keep paying on it at a monthly payment plan of $337 per month. However, starting in Feb 2009, my dh did not get paid from his employer for a full month, then he was laid off in March, and finally started unemployment (he was finally eligible by then) in late April. Long story short, we have gone from having a good paycheck to virtually nothing (unemployment is only 1,548/month). So . . . I haven't been able to make payments on the van. I am nervous to even call them, but scared they are going to repossess. What should I do? We can't make the entire amount right now due, probably half.

Also, we have thought about just letting it go, but dh does not have employment so we would probably never qualify for a loan and we need a vehicle for me and our 5 kids.

Advice?? Insight, thanks!!

If you are wanting to keep the car because you need a car for your family - thats a consideration - however - if you havent reaffirmed it, the way my attorney explained it to me is that if you are even late once they will whisk in and take the car. Also you arent earning any credit points for paying it cause it wasnt reaffirmed.
What I did was let my car go and I went to a dealership and bought a car that was less each month. I put zero down and Im earning credit points as its a new loan. There are finance companies out there who specialize in loaning to people who have just gone through a bankruptcy. Call around the dealerships (or I got about a thousand letters in the mail and I chose a couple to call and chat with to feel them out then went with the one I got along with best). I have not had a single regret yet.
But everyone else is correct.. CALL your current loan company. You never know... they may lower the payments... let you pay only interest.. or.. who knows? but you wont know unless you call them. Then you can make an informed decision having all the facts and different options open to you