SURRENDERING VEHICLE w/o being in BK

[mswinn]

Does anyone know the process as far as surrendering a vehicle but not being in bankruptcy yet. We are almost $3,000 upside down in our car and want to just let it go back to the bank. We have already been through a foreclosure so no difference as far as our credit goes.
-We live in Texas if that makes a difference and the loan is through CitiFinancial.
What happens/could happen if we just call the bank and give it up?
Can they come after us for the $3,000

[StartingOver08]

You are responsible for the entire deficiency if the sale of the vechile will not cover the outstanding amount. So the actual deficiency could be much larger than the $3000 difference between what you now owe and the 'market value'.

Here is a link to some information regarding repossessions (a voluntary surrender is a repo): http://www.ftc.gov/bcp/edu/pubs/cons...tos/aut14.shtm

This link might answer some of your questions too: http://www.expertlaw.com/forums/arch...php/f-163.html

[BKDefender]

mswinn: You just contact your lender (CitiFinancial) and tell them you want to do a voluntary repossession. They can come after you for the $3k. But I can tell you that in Texas, because of the TX constitutional prohibition against wage garnishments, and generous exemptions, it is difficult for a debt collector to get money from someone in Texas without a high income having been used to buy large expensive non-exempt assets.

What that means is that for $3k, they more than likely will not file a lawsuit against you to collect unless an asset search shows you have substantial assets to pay for the judgment.

--William

[KatInVa]

My car sold at auction with a deficiency of $3200.

I ask of they would take 800. as settlement in full? (25%)
At first they said NO!
But after 4 months, they agree and I was fax a letter stating the agreement in writing.
I had to mail them a certified check in 48 hrs.
Final letter I received back stated it was settle in full!

[AngelinaCat]

When the person that 'Hub foolishly co-signed for, defaulted on his payments, WE called the lending company and made arrangements to pick p the car. We were able to get hold of it easily as this person was 'camping' on our property.

It was picked up with no trouble at all. But, when it sold at auction for less than what it was worth, WE got stuck with being sued for the deficiency--about 13K--for a car we never owned, never wanted, and never drove.

This is an example of 'NO GOOD DEED GOES UNPUNISHED'.

This was one more reason we filed BK.........

[scsurfer]

Does anyone know the process as far as surrendering a vehicle but not being in bankruptcy yet. We are almost $3,000 upside down in our car and want to just let it go back to the bank. We have already been through a foreclosure so no difference as far as our credit goes.
-We live in Texas if that makes a difference and the loan is through CitiFinancial.
What happens/could happen if we just call the bank and give it up?
Can they come after us for the $3,000

Curious what your decision/outcome was?