722 Redemption for car thats NOT underwater

[aaskybabe]

Ok I have a 2007 Nissan Frontier that I owe $12,600. The KBB value on the truck is $14,800. (The loan is through a credit union thats cross-collateralized. And I have a CC that I want to discharge...so there is no way I'm reaffirming this debt.)

My question is will I have to pay the $12,600 or the "street value" of $14, 800 to keep the car?

And question #2, my dad said he would sign a loan for me to redeem the car. Is that allowed?

Thanks for any advice.

[jwmc1]

what value did you use (private party, retail, etc)? Are you behind on the payments?

[Brazzy]

My question is why are you redeeming a vehicle that is not underwater? Basically the entire point of a redemption is to pay retail value for a car that you owe way more for. So my question is why?

[SMinGA]

My guess is to avoid cross-collateralization.

My question is why are you redeeming a vehicle that is not underwater? Basically the entire point of a redemption is to pay retail value for a car that you owe way more for. So my question is why?

As to the OP's question - have you already filed? If not, you're not talking about a redemption but a refinance to a different lender. If you get another loan (such as with your dad's help) the new lender pays off the current lien holder and the title is sent to the new lender.

[aaskybabe]

I used the middle trade-in value on KBB to come up with the value on my car.

And yes, the only way to get the car is to redeem it (722) because of the cross collateralization from the credit union. And I am current on the payments.

[HHM]

If you go through US Banks 722 Redemption program, they do all the valuation leg work for you.