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> Lenders and banks were supposed to start going easy on loans but ive had two emails and a phone call about the loan for my Silverado this month and wouldnt yo
by OldHand2018 6y ago
> Lenders and banks were supposed to start going easy on loans but ive had two emails and a phone call about the loan for my Silverado this month and wouldnt you know, the caller was excited to mention my stimulus check.
Don't settle for this. My niece had her car repossessed 3 weeks ago. They said for $18k cash she could have it. We told them to pound sand. She's borrowing cars and getting rides, but next week she'll have a decent car, and I'm going to record a lien on it with the county so nobody can take it if things get worse and she has to declare bankruptcy.
Make them an offer: for $1000 cash, you'll park it in the driveway, unlocked, with the keys in the visor on any day they want to schedule. You're going to buy it back at the auction for 1/3 of what you owe. Or they can work with you, politely. If they take your car, they're just as screwed as you - possibly more so. The used car market is a bloodbath and they all know it's going to be far, far worse in 6 months.
The rich get richer because they know how to take advantage of situations like this. As a diesel tech, you almost certainly have the knowledge to nurse an old beater along and take advantage of your lenders weakness. Please do it.
- toomuchtodo 6y ago> and I'm going to record a lien on it with the county so nobody can take it if things get worse and she has to declare bankruptcy This is brilliant. I have never considered using such a tool in my travels, but have added it to my tool belt. Thank you. > The rich get richer because they know how to take advantage of situations like this. Preach!
- xingped 6y agoCan someone explain how this works?
- toomuchtodo 6y agoOP's niece takes on the liability as the owner (ie she hits someone and causes harm her insurance doesn't cover), but OP retains legal claim against the property, preventing someone else from obtaining it through a legal judgement or similar proceedings.
- OldHand2018 6y agoRight, if it gets taken away it gets given to me as the senior lien holder. For best legal protection, I should loan her money with some nominal interest rate. A distant family member did this on the house of one of their kids, and it saved them from losing it in a foreclosure. The other lender was so angry with them for refusing to release their lien; but they couldn't legally force them to do it.
- 0xffff2 6y agoSo you're paying cash for the car? If there's no loan, who exactly is going to take it away?
- toomuchtodo 6y agoAny creditor you can’t pay who goes through the trouble of getting a judgement against you. This could be a credit card company, a healthcare provider, anyone you owe money to but can’t afford to pay.
- godtoldmetodoit 6y agoHow does this work with an asset the size of a house? Does having as little as say $5,000 in the house when the the other lender has $200,000 in give you this power to stop foreclosure?
- OrangeMango 6y agoMaybe not stop it, but make it a really big pain. They'll need you to sign off on court filings, etc. If you're obstinate, you can certainly encourage them to "deal with this house later".
- r00fus 6y agoDon't house loans require an upfront disclosure of leins against the property?
- bluedino 6y agoYou can't do it (unless it's a mechanic's lein) if there's already a lein on the title.
- CPLX 6y agoIt doesn't. Bankruptcy courts and courts in general are pretty wise to the idea of "debts" and dubious last minute transfers to family members, close relatives, and so on. This guy is definitely not the first person to think of the idea.
- exclusiv 6y agoCorrect. You can't magically draft a senior lien. Unless it's a house in an HOA in a super lien state. Or you're the government and taxes are owed. So there are some instances where a senior lien can be recorded later, but an outstanding auto-loan - not that I'm aware of. Skirting what's owed, playing games with manufactured leverage, getting repossessed - these are all the factors that cause people with lower credit scores to pay a lot more for their loans.
- eppp 6y agoThe used car market has been inflated for years. 100k+ mile vehicles selling for over half their new price makes no sense to me.
- Server6 6y agoIt's because of the long term 72-84 month loans. People are trading in used cars for close to the loan payoff amounts - which is still pretty high.
- qppo 6y agoGM had 0% interest for 84 month loans on their trucks for awhile there. something is very wrong with the lending market when it makes sense to give people free money.
- noarchy 6y agoThe dealerships are making their money with various add-on packages now, to try to bump up the sale price. It isn't even in your favour to offer cash in most cases.
- CydeWeys 6y agoYou're not giving them free money, you're getting them to pay you a lot more in total over many years by selling them a much more expensive vehicle up front. Instead of, say, $20k over 3 years, they can get $40k+ over 7 years for selling a product that doesn't remotely cost them twice as much to build. It's more profit for them. These 0% 7 year loans are not coming from banks. They're coming from the car companies. They're a sales tool.
- bluedino 6y agoIf you take the 0% financing, you miss out on the $4,500 "customer cash" discount. They're just moving numbers around.
- mixmastamyk 6y agoTalk to the federal reserve.
- acomms 6y agoThis might be a dumb question, but wouldn't whoever sold the car/provided financing have the lien on the title? Wouldn't sale/financing be contingent on no other liens on the car/property?
- selimthegrim 6y agoYes, this is why OP would provide the financing himself or pay cash.
- Shivetya 6y agoThis is such horrid advice. She will have to declare bankruptcy to discharge the auto loan and 18k debt may not be sufficient to guarantee she can. Worse, that 18k will now have fees added to it for the repossession and late payments. The chance of getting the car back through auction are near nil for many reasons, from that auctions do not necessarily take place in the same locale to it can be months before the car gets to that point as the paper work has to work through the system, a system sufficiently hampered by the CV19 Now we don't know the full extent of the original poster's loan issues but the best bet is to try to arrange payment changes with the lien holder. Never ever advise anyone to walk away, that is the worst thing you can ever do.
- tekknik 6y agoThe worst advice hardly, you’re exaggerating. Your credit will take a hit for 7 years, which is definitely a long time but the worst of it is you will pay more up front in deposits and pay high interest rates from loans. I’ve walked away from more than $18k during the last crisis and here I am today with a great credit score and am looking at buying a house potentially soon (or at least was pre COVID). The worst thing you can do is to continue paying on something you know you’ll lose anyway, causing even more financial problems for yourself.