NFCU cross-collateralization question

[Rubb]

My ch 7 closed 5/2010. I have an auto loan with NFCU and I had a $45k and $15k CC discharged with NFCU. I did not sign a reaffirmation agreement with any lender. From what I am reading here, I may get done paying off my truck and then be told the $60k from the credit cards is still owed if I want title to my truck? How do I verify this? If that's the case, they can have it back.

[tobee43]

yes, there was recent thread when that exact thing happened to someone when they attempted to reaffirm with their CU....we just surrendered our car to them...but never had any other accounts other than the auto loan...

to put it bluntly...we didn't go to the bathroom where we ate...

[currerbell]

Rubb - chances are your vehicle is cross-collateralized. Seems like each CU does it differently. Some do it through the security provisions in the auto loan docs, some do it through a base contract that they make all borrowing members sign (the "Loanliner Agreement" is fairly common). My CC "contract" was a one-page flyer I signed 7 years before I took out the auto loan. It had a simple provision that said they could get to my depository accounts if I defaulted. Fair enough. The auto loan was much more complex. In the security provision it stated that "the above-described vehicle may serve as collateral for all debts owed Lender." My question for your case is whether you owe the CU a debt beyond the auto loan - clearly you don't if they were all discharged in BK. But you may very well have problems getting the title (unless you are in a lien theory state and already have it).

Have they sent you statements for the auto loan? Maybe you should ask them to do so.

[scorpion35]

1-so what happens if u only have a auto loan and a checking account with a couple $$ in it and u reaffirm the auto loan ?
2- can they take the money that u have in another bank or does this cross-collateralized crap apply only to accounts u have within the CU?


THANKS

[currerbell]

1. if the CU has a cross-coll provision in a doc you have signed, they will that they $$. They took $5 out of mine.

2. Cross-collateralization provisions are where a lender links collateral for one loan to all loans/debts of yours it holds. Parties have to be the same.




***I am NOT your lawyer, this is NOT legal advice, blahblahblah***

[Rubb]

I called them to ask what happens after the truck is paid off. I asked if they will release the title to me and she said that it will go to upper management for a decision. Sounds to me like they have no intention of giving me clear tilte after it is paid off. I still owe $24k and the truck is worth around that.