Need help QUICK!!

[iamsoconfused]

What is the name of your state? Texas

Long story, I purchased a car and then refinanced it with a new bank. When I refinanced the old lienholder sent a clear title to me. I continued to make timely payments with the new company. Jump ahead a year, I traded in the vehicle and when I did I got less than I owed for it, BUT the dealer made the check payable to me because I had the clear title. I sent what I got but I still owe about $4000 on the old loan. I have still been making monthly payments. The old loan company doesn't know I traded it off, but they sent me a letter and stated they were doing an audit and realized they didnt' have the title in possession. They told me to mail it in within 10 days or they would have to call the note payable and due in full. Here's the problem, I can afford the payments but don't have the $4000 to pay it off. They stated it will breach of contract. When they find out I no longer have the vehicle what will happen? Is this criminal or civil? I don't even know where to begin looking to get information on what to do!! I am a single mother and can't afford to go to jail and can't get the money from ANYWHERE.

 

[racer72]

Tell them the truth. Play dumb if you have to but don't lie. The creditor may be willing to make the loan a non collatoral loan. One question, why would you trade in a vehicle and accept a lot less than what was owed on it? If things get nasty, the creditor could take back the vehicle from the dealer then you will have to deal with them, and you will still owe the other creditor.

 

[iamsoconfused]

How can they take it back from the dealer when they have no lien on the title? Plus it's probably been sold to someone else by now. I took less than I owed on it because vehicles lose their value over time. I just dont' want to end up in jail. I was told breach of contract is a civil issue. I can pay it back and will with no problems, just dont want to go to jail over this!!!

 

[I AM ALWAYS LIABLE]

How can they take it back from the dealer when they have no lien on the title? Plus it's probably been sold to someone else by now. I took less than I owed on it because vehicles lose their value over time. I just dont' want to end up in jail. I was told breach of contract is a civil issue. I can pay it back and will with no problems, just dont want to go to jail over this!!!

My response:

Well, you ARE going to the State Penitentiary for this!

You'll be doing 10-25 years, without the possibility of parole, making big rocks into little rocks. How's your sledgehammer hand-eye coordination these days?

Say "hello" to Bubba!

IAAL

 

[HomeGuru]

Would that not be Mrs.Bubba?

 

[markc2101]

Why don't you take out a personel loan and square up on the balance as most personel loans don't require coladeral, use a creditcard for a cash advance for that matter, As you stated you make all your payments so you should have a good credit rating that should make this easy.