What does this letter mean? Are they going to Repo??

[momofmany]

Background info: We are waiting to file for Ch. 7 until April 2008(due to previous bk. ). We stopped paying CC's in June. We have been continuing to pay on our truck as best as we could. June and July were paid(late, but they were paid). Haven't paid an August or Sept. and the soon coming due Oct. payment either. There's just not enough money. My husband was on OT and so we were swinging the truck payments(barely), but he's been off OT now for 2 months. So the vehicle place calls several times a day and letters in the mail every few weeks. He called them several months ago to see if they could do anything(such as extend the loan out to lower payments or something), and they said no, they couldn't do anything. So it seemed pointless to answer the phone since they couldn't do anything anyways.

So we got a letter this weekend. It says,

"we are writing to let you know that we have tried to reach you by phone in regard to your above referenced account. You have not responded to our messages and have not met your obilgation to make account payments on a regular basis.

If you do not bring your account current by paying the total past due indicated above(which is $1,382.25) within five days after receiving this letter, we will take the necessary action to secure payment, which may include acceleration of this loan. We hope this matter will be resolved prior to our taking any such action."

So the part I'm curious about is the acceleration of the loan...does that mean they would be repoing? The letter is signed by so in so-EARLY STAGE (not sure if that means they have a Late stage too?)

We totally understand that they want money...but if they are coming to repo it anyways, it seems pointless to pay them anymore, as we would use any extra $ we might be able to scrape together to buy a cheap vehicle to replace this one(it's the only vehicle that fits our whole family).

We were hoping to get by until Nov. Paying them something so that my husband could get his yearly bonus(about $1,200) so we could buy a different vehicle.

Do you think if we call them, they would tell us what they mean exactly?

Thanks for any insight into what this letter means. Thanks, Sara

[BassBoy]

Loan Acceleration

Definition:
The acceleration clause A legal agreement [contract] stating that the entire outstanding balance of a loan becomes payable immediately if a certain event transpires [e.g., missing a payment.]

Examples:
Robert missed his monthly payment for his business. The bank envoked the acceleration clause and forced him to pay all the money he owed them immediately.

[HHM]

At this point repo is probably imminent. Most car finance companies start the collection process after 2 missed payments (which you have), and will actually hire a repo company around month 3 or 4 after the first missed payments (which is about to happen)

Long story short, unless you pay them the past due amount ASAP, that truck will more than likely be repo'd before Thanksgiving.

[momofmany]

Ok, thanks you two!! I'm ok with the Repo as we just can't keep paying on the truck, but I'd sure like to make sure we don't have our children's car seats or any personal belongings in when they get it.

Do they let you know before they come or can we offer to drop it off at a local dealership?? Thanks, Sara

[BassBoy]

They surely won't call. They'll just show up and take it. Although they can not take the car from, let's say, your garage. It has to be out in the open (in the driveway or in a parking lot).

Yes, you could make arrangements to drop off the vehicle or have it picked up. This way, you know exactly when you'll be needing another vehicle.

[jennyn]

When our van was repo'd. The guy knocked on the door and let my husband get everything out. He said when he saw the kids stuff he didn't want them to miss anything. I don't know if it is because we live in a small town, but he was really nice.

[momofmany]

When our van was repo'd. The guy knocked on the door and let my husband get everything out. He said when he saw the kids stuff he didn't want them to miss anything. I don't know if it is because we live in a small town, but he was really nice.

Jennyn, that was sweet of him!! Sara

[$$only4ever]

You have received the official "Notice of Intent of Repossession." Many states have it made it mandatory for creditors to send this letter before the vehicle is repo'd. If you serious about letting them take the truck, take your tags off before the repo man comes.

[momofmany]

You have received the official "Notice of Intent of Repossession." Many states have it made it mandatory for creditors to send this letter before the vehicle is repo'd. If you serious about letting them take the truck, take your tags off before the repo man comes.

Are you saying to take off the license plates?? IF so, why?? Thanks, Sara

[BassBoy]

You have received the official "Notice of Intent of Repossession." Many states have it made it mandatory for creditors to send this letter before the vehicle is repo'd. If you serious about letting them take the truck, take your tags off before the repo man comes.

Are you saying to take off the license plates?? IF so, why?? Thanks, Sara

The registration/plates can be transferred to another truck.

[$$only4ever]

I live in Maryland. In order to cancel the insurance on the vehicle once it has been repo'd, you have to turn the plates in at Motor Vehicles. I knew someone who never got their tags back after the vehicle was repo'd and ended up owing the MVA over $4,000.