Ford Motor Credit; we do not negotiate redemptions on our car loans...

[PushRestart]

Called FMC to discuss a redemption car loan with them and was told that Ford Motor Credit does not do redemptions on their car loans. I had hoped to keep my car but redeem it at less than what is owed but it seems impossibly hard to accomplish.

My lawyer says that if he files a motion to redeem, it is not likely that the BK court will actually cut the loan down from its $21K balance to something like the $16K I think the car is worth. However, this does not seem to match other information I have found on this forum that seems to say that I may be able to do just that and shave the negative equity off of my car loan via redemption.

I'm frustrated because I do not want to reaffirm negative equity in my car loan but I must have this type of vehicle that is perfect for my work in many ways.

Could my lawyer be mistaken? Guy is a rockstar in most things, so I want to go with the flow but I also planned on only keeping one debt out of all my debts and this car is that debt.

This post is my last hope for keeping my vehicle, I could use any and all ideas to make the redemption a reality. At the same time, I am prepared to let this car go, I am simply stuck needing a car like this for my work... ug. Ideas? Thoughts? Buehler? :o)

[keepsmiling]

I think you are looking for a 722 Redemption. They tend to be at pretty high rates but you can refi later. Try a search for the term, or perhaps one of the experts will chime in on this.

[despritfreya]

My lawyer says that if he files a motion to redeem, it is not likely that the BK court will actually cut the loan down from its $21K balance to something like the $16K I think the car is worth. However, this does not seem to match other information I have found on this forum that seems to say that I may be able to do just that and shave the negative equity off of my car loan via redemption.

Your attny is correct in the sense that FMC will respond to the Motion and assert that the vehicle is worth substantially more. You will then have to litigate the value. The legal fees you will incur will be higher than any savings you think you will get with a redemption. Your attny is politely telling you that you are wasting his time and YOUR money.

If you really believe the vehicle is worth so little, let it go and finance another one. There are many posts on this forum about successful financing after bk.

Des.

[AngelinaCatHub]

I have read here that Ford is difficult to work with. Here is a thread that quickly explains it all. You will have to make a lump sum payment and have permission to get that loan from the Courts. http://www.socaladvocates.com/722-re...ankruptcy.html


'Hub

[AngelinaCatHub]

Grats on your 1500th post, Des. 'Hub

[despritfreya]

Grats on your 1500th post, Des. 'Hub

Just shows that I spend way too much time dealing with bk matters (work & home). I need a life!

Des.

Now it's 1501