Ford Motor Co letter

[Floridagail]

Hubby filed chpt 7, Feb 6, We are current on both Car and Business Truck, intending to keep paying. 341 meeting March 14.
At least as long as they run. The Ford Mustang has had problems too soon. We adore the Mustang. But we should of made them give us another right off the bat.
The Mustang 2011 (bought in June 2010, Has had transmittion work , Dec 2010, thanks goodness warrantly took care of 5000. June 2011 more transmition work 900 covered also. Owe 19K 3yrs left, KBB value 9800,unbelieveable.

Today , Received letter today from Ford , This must be as an attempt to extort people into reaffirming, I guess. Saying We have until May 8th reaffirm or the car would be surrendered. Not sure what to do, Heart says keep, brain says no way. I cannot believe they would pick up a car that is being paid.

[Pizza]

Ford's proposition doesn't make sense. You owe double what it's worth. It would take a year and half (before interest) for you to reach current equity. They would be taking a $10,000 loss by trying to repo it right now.

[Floridagail]

It sure does not make sense to me either. I think it is bluff game they are playing. And they do not know abou the transmission problems. I wonder if anyone has really had the car picked up.

[NoMoreCards]

I had heard that Ford was one of the ones that do require a reaffirmation in order to keep. No idea if they will go through with repo, but I would risk it before making yourself liable for a car that was underwater like that.

[Floridagail]

That is our thinking too, We may just stop paying since they gave us deadline of May. The next payment is due after the 341.

[Pizza]

I had heard that Ford was one of the ones that do require a reaffirmation in order to keep. No idea if they will go through with repo, but I would risk it before making yourself liable for a car that was underwater like that.

I would too. They are willing to take back an underwater car, owner current on payments, in hopes that someone else will be willing to pay $10,000 too much before it loses any more equity sitting on a lot somewhere? I think I'd call that bluff. They're in the business of making money, not losing it.

[NoMoreCards]

It is not good business sense, but it does happen. Just be prepared and leave nothing personal in the car.

[NoMoreCards]

Actually, do a search on this forum for " ford repo". It is not uncommon at all.

[ace300s]

WOW...Fords letter doesn't make since!

Here's what happened to us. Our loan was with Citi. The car's KBB was 12,500 and we owed 14,500 (8.9 interest rate). Citi sent us a reafirming letter with a balance of 10,900 and zero interest rate for 40 months. We took it and almost have the car paid for 12 months later....

I would think Ford would want to work with you a little on your car? Good luck...

[Floridagail]

Here a part of letter. (Please note the creditor intends to strictly enforce to the full extent of the law . Making a bankruptcy an act of Default. Pay and Retain is no longer an option.
They state the market value 2011 mustang $19,300 We owe $18,300. The interest rate to stay same 5.9.
According to KBB 9800 (over 80,000 miles).
We will discuss with attorney after 341 meeting, in meantime they can kiss my !!!

[Drazil65]

It does not make sense but here is your chance to start cleaning up your financial world. I personally would let them have it, stop making payments and let them have it. It is just a car and you should start telling yourself that. We have all had to make the compromises that lead us down the road to our fresh start, you will be ok, let them have it.

[Floridagail]

Yes, Hubby and I were just discussing, We really had only plan to keep it , If it continued to run,( as it is lungeing every now and then again so trans may be going out). No need to reaffirm. I guess I am just shocked that they would really want the car back.

I could buy a car in my name. The car is in his name and he is filing. I hope GMC does not send the same letter on the truck.

[ace300s]

Here's something that surprised us. When we were going through the BK7 process we recieved many car loan offers. Capitol One even offered my wife a 30,000 voucher offer. People on this board said we would recieve offers and we did.

Talk to your attorney. He may suggest a counter offer to Ford. Good luck in what your decided......

[Floridagail]

Thanks Ace, I guess we just needed to vent.

[Pizza]

Here a part of letter. (Please note the creditor intends to strictly enforce to the full extent of the law . Making a bankruptcy an act of Default. Pay and Retain is no longer an option.
They state the market value 2011 mustang $19,300 We owe $18,300. The interest rate to stay same 5.9.
According to KBB 9800 (over 80,000 miles).
We will discuss with attorney after 341 meeting, in meantime they can kiss my !!!

This is probably the reason they're giving you grief - they are overvaluing their car!
At any rate, don't reaff. If you can talk some sense into them regarding KBB, it's worth a try.