REPONDERING

I have a auto loan which is upside down,as a result I cannot trade up without a large down payment.I am also looking to refinance my home within the year. Someone stated to me that I could voluntarily repo my car.Is this true and how does this affect my chances of refi on my home.Am I still responcible for paying off the car.If alouded how long of await before I can apply for refi and auto loan. I thank God for you guys,I tell my family,in-laws,close friends and co-workers about you. In todays times we need you more than ever. God Bless.

Reginald

———–

Hello Reginald,

A voluntary repo will cause damage to the credit to the point that qualifying for a mortgage refinance in the next year will be difficult to impossible.  Additionally, the car will be sold at auction and the creditor may seek a deficiency judgment to pursue garnishment of wages or bank funds.

A voluntary repo isn’t much of a solution unless you were able to obtain a written agreement with the creditor to settle the loan balance in full and redact the tradeline – now, while that would not be impossible; nevertheless, it would be rare/unusual.

Interestingly, there are rules of repo and if the creditor breaks them, then a deficiency can be fought and prevented defensively.  I’d suggest keeping the car if at all possible.  A voluntary repo is probably not the solution you’re looking for.

Read: Did You Receive Your ‘UCC Compliant’ Repo Notice?, I’m In Deepo With A Repo & Buy Here Pay Here Car Lot – Judgment

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.