Mar
17
how does a voluntary vehicle repossession affect your credit?
By
How points go down? Is it considered a collection? How long does it stay on your record? If a lease, does that payoff go on your record?
Real Estate Professionals
How will a voluntary repossession affect my credit? I took out an auto loan for my brother to get a car last Feb. He failed to pay, so I took the car back and have been making payments for the last three months. I’ve listed the car for sale several times on Ebay, in the local newspaper,...
How does a voluntary repossession affect your credit? Here is the deal. I have a $535 per month car note. I can afford it, but I would love to get a lower payment so that I can pay some principle down on my home. The new car note would be $237 or less. Thats ~$298, approximately back...
What are the steps to do a voluntary vehicle repossession? My husband recently had an accident, his not working. Were not able to pay the car anymore. The lender told us, if we do a voluntary reposession on the vehicle that they will sell it on an auction and depends what the price they sell the car and the...
what is the difference, if any, between repossession and surrendering my car? how does this affect my credit? I am moving to Hawaii and it will cost so much money to have it shipped there. I am thinking about surrendering my car back to the bank, which financed the car loan. Is this the same as repossession? How would this affect my credit? I just got the...
How bad would the repossession by ‘we finance auto’ affect my credit? I had to buy a used auto from ‘we finance’ like early this year due to no credit establishment. And I have been ****** paying over 200% of the blue book price. And I don’t want to keep paying that because financial situation these days is not really good....
5 Comments
March 17th, 2009 at 10:18 am
7 years …..it affects it just like a foreclosure. EXCEPT repos dont affect the capability of obtaining a mortgage….foreclosures do…
you can have a REPO and a collection account if you owe them money. you can probably assume that at least 100 points will drop
March 18th, 2009 at 4:48 am
No matter what you do it will affect your credit.
March 19th, 2009 at 1:46 am
Its as bad as an involuntary repo. It will go on your credit and it will hurt. It will stay on 7 years from the date of first delinquency. It is not a collection. It will show the full history of the account. Every late payment will show. Its gonna hurt. And they will come after you for what you owe still. They will sell the car (for way less than they should) and come after you for the difference. Have you tried deferring a payment or two? Most companies will do this, maybe with a fee involved. Also, if its this bad, maybe talk to a bankruptcy attorney about a chapter 13. I think they can help and you can keep the car. Not certain how it all works, but Id look into it before I gave the car back. It wont solve anything. Good luck and hang in there!
March 22nd, 2009 at 12:13 am
Auto finance is what I do for a living and bmd is correct as far as she goes.
It will hurt your score/profile bad for the next several years. You should expect at least a 100-point drop in score.
If this has not happened yet, you should avoid it at all cost. A repossession without a bankruptcy to explain it is one of the worst things that can show on your credit report.
Not only will they come after you for the difference but they will add all cost for the repossession, towing, storage, auction, reconditioning, late fees, interest, lawyers and anything else they can think of.
This could amount to several thousand dollars and if you do not pay they can take you to court, get a judgment and then attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this activity will show on your credit for 7-years and make it very hard to get any other type of loans without making massive down payments, paying huge fees and State maximum interest rates.
March 22nd, 2009 at 10:06 am
Of course it’s considered a collection! And it will stay on your credit report for at least 7 years. It doesn’t matter if it’s a lease or not - if you are unable to make payments and the car is repossessed, it’s going to negatively impact your credit for many years.