Returning Truck before defaulting on the loan

[maverik]

What is the name of your state? Idaho

We are up to our eyeballs in debt. More money that needs to go out than we have coming in.

We have a newer truck and have many many years to go on it, is there a way we can return the truck to the bank? That is the only bill we are not behind in, but it's also $500 a month we really really need.

How would I go about doing this?

Thanks for your help!

[tabathadolley]

Your option would be to do a voluntary repo. Keep in mind this is still a repo and will negatively affect your credit. If I were you I would find a way to keep the truck until you can sell it, or trade it in for a lower payment.

[maverik]

I wish we could sell it for what we owe but we are so upside down in it because when we sold our Durango we had to rollover money, I know dumb to begin with. And if we trade it in we are in the same boat and the payments will be about the same. We've already tried that.

I know it would affect our credit, our credit is so shot right now hell bankrupty is looking pretty damn good, But I don't want to go that route. If we could just out from the truck that would give us some room to start at least rebuilding some credit, eventually anyways.

How do you go about a voluntary repo?

[Happy Trails]

Originally Posted by maverik

I wish we could sell it for what we owe but we are so upside down in it because when we sold our Durango we had to rollover money, I know dumb to begin with. And if we trade it in we are in the same boat and the payments will be about the same. We've already tried that.

I know it would affect our credit, our credit is so shot right now hell bankrupty is looking pretty damn good, But I don't want to go that route. If we could just out from the truck that would give us some room to start at least rebuilding some credit, eventually anyways.

How do you go about a voluntary repo?

Keep in mind, once you voluntarily turn it over, they will sell the vehicle and if they don't get the full amount you owe, you will still owe the remaining balance.

[tabathadolley]

How do you go about a voluntary repo?

I've never had to do one, so I'm not really positive - but I suppose you would start by contacting the bank.

I just want to remind you that this is the same as a regular repo. And you do understand that they will put the car up for auction and sell it for quite a bit less than you owe. You will be responsible for paying that difference.

[maverik]

Ugggghhhhhh, yes I know. I'm damned if we do, damned if we don't.

Thanks for your advice! I really appreciate it!

[Happy Trails]

Check out these other links:

[url]http://forum.freeadvice.com/showthread.php?t=213009&highlight=repo[/url]

[url]http://forum.freeadvice.com/showthread.php?t=211736&highlight=repo[/url]

[url]http://forum.freeadvice.com/showthread.php?t=210168&highlight=repo[/url]

[maverik]

This is my ignorance coming into play here, I apologize.

So even if they reposess the car, you still have to pay? What is the point of reposessing it then if you still have to pay?

[tabathadolley]

So even if they reposess the car, you still have to pay? What is the point of reposessing it then if you still have to pay?

Because if they repo the car they get the money you owe them from first auctioning the car, and then making you pay the difference. Why would the bank lose money??

[Happy Trails]

Originally Posted by maverik

This is my ignorance coming into play here, I apologize.

So even if they reposess the car, you still have to pay? What is the point of reposessing it then if you still have to pay?

One reason to let them take back posession would be they will regain some of the money you owe (which is that much less that you'll have to pay).