help w/elder dad-defaulted on auto loan

[ANQ]

What is the name of your state?What is the name of your state?What is the name of your state? Florida
My sis and I need help and time is of the essence since we live far away from our dad. I'll try to be brief:
4 months ago, 80 year-old dad trusted our brother who promised to make car loan payments if dad co-signed the loan. Both have bad credit histories, but dad receives monthly pension and soc security benefits and has enough to live on but no savings. Dad does not drive. Brother lives with dad and has no assets. Car dealer puts dad's name and account info as primary signer & my brother as co-signer; dad 's pressured by brother into signing.

Brother sends 1st month's payment, brother's business contracts fall through, he defaults on payments, car was repo'd 2 weekends ago, bank wants payment upfront or car will be auctioned 2 days from today. My sis and I did not know that about this until 3 days ago, and we would have done something to prevent the loan in the 1st place. We manage my dad's accounts so his bills are paid on time. How can we make arrangements so the bank does not garnish, place a llien on or freeze dad's accounts; and how can we minimize the amount dad will have to pay after car is auctioned?

[debtcollector`]

Originally Posted by ANQ

How can we make arrangements so the bank does not garnish, place a llien on or freeze dad's accounts; and how can we minimize the amount dad will have to pay after car is auctioned?

Your question has two parts:
1. Pay the car off
2. Pay the car off

As a side note, I'd have a long unfriendly talk with my brother.

DC

[ANQ]

Granted dad made a mistake and has to pay - car or no car. For right now, lets put aside the obvious elder abuse my brother is perpetrating emotionally and financially on my dad which will require a different area of legal expertise. The issue at hand is two-fold: (1) we want to negotiate a reduced payoff amount, and (2) set up a payment schedule that my dad can manage and not live on cat food. We need advice on how we can help that process between dad and the bank from 1200 miles away? It's important to mention that he's 80 years old, hard of hearing and has difficulty at times understanding concepts that have alot of complicated steps. I thank you for your insight.

[HomeGuru]

Originally Posted by ANQ

Granted dad made a mistake and has to pay - car or no car. For right now, lets put aside the obvious elder abuse my brother is perpetrating emotionally and financially on my dad which will require a different area of legal expertise. The issue at hand is two-fold: (1) we want to negotiate a reduced payoff amount, and (2) set up a payment schedule that my dad can manage and not live on cat food. We need advice on how we can help that process between dad and the bank from 1200 miles away? It's important to mention that he's 80 years old, hard of hearing and has difficulty at times understanding concepts that have alot of complicated steps. I thank you for your insight.

**A: and are you hard of reading? Did your read debtcollector's post?

[Chien]

Re: Thanks for the obvious

The thing is that your options are the obvious ones, because there is little possibility of helping Dad any other way. It's too late to undo the car deal, you and Sis can't buy Dad out of the problem and Brother won't/can't.

The bank can't reach Dad's pension or SS benefits, and it doesn't sound as if there is much more. It can reach Brother, just as soon as he has anything, and he might want to recognize that and make a bit more of a contribution (in every sense) to solving the problem.

Contact the bank, be candid and sincere about your desire to help both parties, the bank to get paid and Dad to have relative peace of mind. Ask what you can do to help set up a workable payment plan. Don't dispute the debt (there's no dispute), and don't obligate yourself.

Either the bank will work with you (out of compassion or self-interest - doesn't matter) or it won't. If it won't, you're no worse off than you are for not having asked.

If you get a deal, tell Bro that he helps or you sic the bank on him.

[debtcollector`]

Originally Posted by Chien

The bank can't reach Dad's pension or SS benefits, and it doesn't sound as if there is much more.

Not necessarily. They can't touch the SS benefits, but it depends on the type pension and whether or not it was used as the income for the loan decision -- but that will be an issue for lawyers if/when the issue gets to court.

DC

[Chien]

debtcollector - ANQ

debtcollector is right. I was loose, sloppy and over-stated my case.
And if I was in your shoes, and talking to the bank, and the subject came up, I’d say the same thing anyway.

ANQ - maybe I made my point poorly. Your need is not to make a list, contact the bank, throw down the gauntlet and say “Nah, nah, this is what you can’t get.” You’re behind the eight-ball. You want cooperation.

Every collector knows that there are good and “less good” ways of enforcement. If you (the collector) have a wage garnishment, you have a well that’s pumping out revenue until the debtor leaves the job or the debt is satisfied. If you have a bank levy, that’s good for 3-4 hits tops, before it stops spitting out pennies, and you have to pay for each hit, and then find another source. There’s a difference.

You have to explain to the bank that “Yes, there are assets but not a lot and you have to reach for them and that takes time and costs money. On the other hand, here I am, trying to work with you and get you paid voluntarily (but in your own words).” My hope is that wins hearts and minds. If it does, you never get far enough that the type of pension or status of any other asset is a consideration.