I am currently in a sticky situation with NFCU. First off, I fully understand the meaning of a cross collateralization clause...what I am looking for is practical advice and or sharing of any experience & knowledge with NFCU. (I've read almost every post with NFCU contained in it!)
I am currently in default with NFCU on:
All of these are individual, in my name only. I have no money in my NFCU bank accounts. All of these are about 40 days passed due.
The problem is that my girlfriend, who is also a member of NFCU, has an auto loan that I co-signed for her a few years ago (when my credit was stellar). She's probably a little bit more than 1/2 way through her 5 year loan on the far....maybe 8-10K left on the note...and her payments are always on time. & not delinquent at all. NFCU is starting to throw around the cross-collateralization issue, threatening to repo the car.
The car is probably worth a little more than what is owed on the note...but not much. While I understand NFCU is within their rights to repo the car....it doesn't seem to make sense to do so....repo a car that has current payments, incur the cost of repo and resale...pay off that note, and be left with a few K (if they are lucky) to put toward my massive debt to them.
Do we think that this is just scare tactics, or am I in jeapordy of her car being re-poed soon? It was suggested in another thread to refi the car...but I dont think they would provide a lien release.
I'm about a month from being able to file BK7. I'm hoping at that time...when I list them as a creditor, my responsibility as co-signor will end and she continues to pay the note as agreed, and she is safe with her car.
Comments greatly appreciated.
I am currently in default with NFCU on:
- CC - 50K
- Overdraft - 10K
- Signature Loan (unsecured) - 15K
All of these are individual, in my name only. I have no money in my NFCU bank accounts. All of these are about 40 days passed due.
The problem is that my girlfriend, who is also a member of NFCU, has an auto loan that I co-signed for her a few years ago (when my credit was stellar). She's probably a little bit more than 1/2 way through her 5 year loan on the far....maybe 8-10K left on the note...and her payments are always on time. & not delinquent at all. NFCU is starting to throw around the cross-collateralization issue, threatening to repo the car.
The car is probably worth a little more than what is owed on the note...but not much. While I understand NFCU is within their rights to repo the car....it doesn't seem to make sense to do so....repo a car that has current payments, incur the cost of repo and resale...pay off that note, and be left with a few K (if they are lucky) to put toward my massive debt to them.
Do we think that this is just scare tactics, or am I in jeapordy of her car being re-poed soon? It was suggested in another thread to refi the car...but I dont think they would provide a lien release.
I'm about a month from being able to file BK7. I'm hoping at that time...when I list them as a creditor, my responsibility as co-signor will end and she continues to pay the note as agreed, and she is safe with her car.
Comments greatly appreciated.
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