keeping car and not reaffirming

[housepoor]

We got a letter a few days ago from our lawyer. Our car loan company (Chrystler) sent them a letter wanting us to reaffirm our loan. We are up to date on the loan and want to keep the car but we don't want to actually reaffirm it. The lawyer didn't even call and explain it to us with our options just the letter with a small explanation and saying that they normally do not suggest reaffirming. Based on what I've read here I just intended to keep the car and keep paying. My question I guess is this. They say (Chrystler) the current car value is 19,000 and we owe 14, 500. Since they could get some equity out of it will they take it? My sister keeps saying they can't as long as you are paying but it's my understanding that they don't have to LET you do that they just normally do because it is financially in their best interest. In this case though they could get more money by taking it. Is there any way to guarantee I keep my car (making timely payments of course) without reaffirming the loan? We have 2 vehicles but the other is a beat up work truck my dh uses and isn't big enough to fit the 4 kids so if they take the car I'm in big trouble. Thanks.

[billf]

I think it depends which state you are in

and the laws relating to vehicle repossession. In Massachusetts, they cannot repossess for non monetary default.. i.e. if you're up to date, they can't get the car back even if you do not reaffirm. Check with your attorney

[housepoor]

We are in PA. I forgot to add that I can't afford to buy it back from them either. I really don't want to reaffirm because honestly it's only 1 1/2 years old and already having issues so I don't know if it will survive the length of the loan.

[StartingOver08]

Be careful. There is new case law where "retain and pay" has been rejected by the appeals court. The creditor was Daimler Chrysler and the case is In re Jones, No. 08-2177 (4th Cir. Jan. 11, 2010). See this article

[housepoor]

Of course it would have to be our finance lender, that's just how our luck goes. I guess I better call our lawyer, not like I'll get to talk to him or anything.

[Chowder]

Be careful. There is new case law where "retain and pay" has been rejected by the appeals court. The creditor was Daimler Chrysler and the case is In re Jones, No. 08-2177 (4th Cir. Jan. 11, 2010). See this article http://www./2010/01/20/retain-and-pa...by-new-ruling/

Link no worky

This appears to trump state law. Worse, it looks to apply to home mortgages too.

[StartingOver08]

Thank you! That is the exact article.

[OhioFiler]

Chrysler is owned by the US government. I'm beginning to see issues with this situation. Obama is now free to repossess your car.