Voluntary Repossession?! Advice please. - Page 2

watskooo · 06-10-2009, 03:42 PM

I've been thru a voluntary repossession and just giving them the vehicle back doesn't end your troubles. They will sell it at auction and if they don't get what you owe then you are on the hook for the difference. I doubt they are under any obligation to honor the $5000 amount if you owe more than that. If you can't pay the difference when they ask for it, they can charge you interest, and if you can't make payments they can charge you late fees.

You do not have to get the money before you can sell the bike. It's a little more work, but you can work with the buyer and the bank to get it paid off and sold at the same time. I'd say selling the bike is your best option, it keeps the repossession off your credit report and you have a little more control over the amount you end up paying to get out of the loan.

JT77 · 06-10-2009, 03:42 PM

Originally Posted by Desvio

Whether voluntary (looks better on record) or involuntary (your fuked), once the bank repos you bike, they will sell it at auction. Unfortunantly if the sale price does not satisfy the balance of the loan (and it will most definitly sell lowball), you will still owe the difference. If you communicate responsibly with your bank/financier, it will look better and reduce how many point they will gouge you on. And you may be able to sell it privately to reduce the amount you will owe in the end, as opposed to them auctioning it at a ridiculously low price.

You need to work with your financial institution, they know they will lose by selling it at auction and should not want it back. Explain to them that you are actively trying to sell it so that the amount you owe them will be less. It is really a no win situation for you because you will still owe on the diffeciency balance. They might not work with you but at least you can avoid the repo and court/attorney charges of a replevin action if you try to hide it (court orders to give back the bike). If it comes to them (and if you are able to find a job) garnishing your wages, try to talk to them about a voluntary wage assignment which can save you atorney's fees. Garnishments have to be redone multiple times a year so every time they are, boom more attorney's fees. Also if they choose to "charge off" an amount do not forget that can be counted as taxable income at year end.

The above stated opinions are mine alone and are not to be constreud as legal or financial advice. I do recommend talking to an attorney or other legal proffessional before taking any course of action.

good luck!

Devil_Doc · 06-11-2009, 12:30 PM

Originally Posted by Chunk

Returning the bike on your own is actually a decent option, in all honesty. Banks HATE repo's because they end up going to auction and not getting shit for it anyways....I would still try and sell to the last minute though and take their offer while they are giving it. Failing that return it. It does still do a lot of harm to your credit, but there IS in fact a difference when you volunteer to give it up versus them having to pay to repo it.

Talk to your bank more, and let them know what your thinking on that end. Efforts on your part can go a long ways with some lenders. Trust me I was one of those lenders for 5 years. Shitty place to be man, good luck.

Wrong.

Originally Posted by Capt. All Gravy

My advice "and its only advice", is to keep the bike and do whatever nescessary to trudge thru this tough period in your life, its an unfortunate situation but its manageable, I voluntarily repod my truck a couple years ago, and I am still paying on it, I owed 16k at repossession and owed 8k after, I will have paid the msrp for the truck by the time its said and done but with no truck to show for it. you do get some flex time and you do get to negotiate payments but you still owe unless you choose to ignore them, unfortunatley depending on the balance though they wont just wright it off, they can actualy take it to court and garnish wages to recover the balance and by then it could almost be what you owed on it anyway, I was in a bad spot for approx 8 months, after wich I could have easily afforded it and by now I would have had it payed off anyway. park the bike in a safe and secure undisclosed location, drop the insurance to save some money, pay what you can when you can, but get it paid off and youll be glad in the long run when your looking back on the situation.

Right.

I've been through it. The only thing that changes with a voluntary repo is that if you drop off the car and keys, you won't be charged hundreds of dollars for the repo and hundreds more for the storage until it goes to auction, and then hundreds more to "re-key" your ignition and doors. Yes, they charge you to repo your vehicle. Happened to me on xmas night a few years back, The repo and storage added over 1000 to my total bill when all was said and done. There is no difference on your credit. Period. A repo is a repo is a repo, end of story.
If you return your vehicle, or if its taken.
-They have to give you a few weeks to rectify the situation. Meaning, you come up with a) all your back payments, plus penalties, plus repo and storage fees b) refinance your loan c) pay off the entire amount owed. Bear in mind that since they already have the vehicle, they have absolutely no reason to work with you.
-When you don't pay, and they know you can't... The vehicle will be sold at auction. You will be fucked. It blue books for $6500? Might sell for $2500. You owe (hypothetically) $8000, subtract what the bank made at auction and you now owe the bank $5500, plus the $1000 for misc repo storage and other "fees" the bank incurred. Congrats, you now owe just shy of $7000 for a vehicle you don't have. You have a repo on your credit which means it will be about 7 years before anyone will loan you anything, and thats assuming you pay off the repo immediately. The bank will sell the debt to collections, and they don't want to hear about payments. They want money. You can wait 6 months to a year and try to settle at about %40-50 of the value of the debt, which means you'll end up paying almost $4000. THe collection agency will mark your report as "Reposession/Collection: Settled, less than total amount", and now you have 7 more years to wait for that to fall off. Guess what? A settled or closed collection account fucks you just as much as an open collection account for the first couple of years. Everything you finance will be at "high risk" rates.

If you don't want to return it or have it repo'd.
-Hide it somewhere that you don't and have never lived. Not your parents place, not anywhere that you have ever recieved mail or written down as an address. Even better is to park it in a garage, lock the door, and cover it up whenever possible.
-You'll have a job eventually. Start making payments then. A year of late payments looks a whole lot better than a repo.
-Ignore the bank when they talk about lawyers and taking you to court. You can't go to jail for not making payments on your bike. You can be taken to court, but the only thing a judge can do is say that "yes, you do owe money" and place a judgement on your credit, but this is exactly the same as a repo. Why would a bank spend a few thousand on a lawyer, to just re-afirm what your credit report already says, for a loan that is only a few thousand dollars? Makes more sense for them to sell the bad debt to a collection agency and at least make something off of it.
Best option? Sell it, and sell it now! Put it on craigslist for what you owe, and make sure you say nothing about it about to be repo'd. People will smell desperation and low ball you. Say something about a baby on the way, or you love it but the wife/GF wants it gone. The world is full of people who will happily buy your bike.
I used to do credit repair for a living. PM me if you have any questions...

rider80 · 07-09-2009, 09:28 PM

You can listen to all of them and either take it in the ass or hide it, either way its going to hurt. Fortunately enough for me, im in the military and if do a voluntary repo, I just remind them that I have the option to relinquish anything that I have tried to buy with no reprecussions and they cant take me to court to get it back. I had to PCS (Permanent Change Station) overseas and I could only take one vehicle, so i had to get rid of one because they werent goin to pay for my storage, so I called and told them they needed to come get their Jeep. Military clauses are the best way out of it, but my credit is still crap till 2014.

bubba_zenetti · 07-09-2009, 09:38 PM

learn to stunt on it. give it back to them after you wad it a few times

fastfoodfred · 07-09-2009, 09:40 PM

Is it possible this is fake?! Never buy a vehicle with no title. One more time NEVER BUY A VEHICLE WITH NOT TITLE.

I reread the original post and this guy is trying to sell his bike and has no title for it. What is going to happen is that you will be promised the title as soon as his check comes through for the settlement, and he will take your money and his and get the title. I don't think so. He is more than likey going to run with your money and leave you with a bike that is essentially stolen from his bank, and is still going to get repo'd.

I hope I am not correct, but this makes no other sense to me.

Hawkfan79 · 07-09-2009, 09:42 PM

Pay your bills...

Armand · 07-09-2009, 10:16 PM

Originally Posted by fastfoodfred

Is it possible this is fake?! Never buy a vehicle with no title. One more time NEVER BUY A VEHICLE WITH NOT TITLE.

I dont think it's fake, but it does seem like he might not know that you can just go to the bank and get the title from there lol.

Originally Posted by Hawkfan79

Pay your bills...

thats f'ed up to say. guy made it pretty clear that he's got no job. living on a friends couch and is looking for a job. we're in a recession at the moment so finding a job isnt the easiest task unless you want to settle for flipping burgers

Sedalia · 07-09-2009, 10:35 PM

Originally Posted by Armand

unless you want to settle for flipping burgers

at least flipping burgers would get the bills paid (or mostly paid, lol)

Armand · 07-09-2009, 10:47 PM

Originally Posted by Sedalia

at least flipping burgers would get the bills paid (or mostly paid, lol)

agreed, but most people will still keep that as a last resort lol

mikxm · 07-09-2009, 10:49 PM

Good Luck finding a Job flipping Burgers even.

JasonM · 07-09-2009, 11:19 PM

Best advice is to sell it, quickly. As has been said, sell it for what you owe on it and make it clear to the buyer that you can go to the bank together and have the buyer pay the bank so that the bank will relinquish the title to the buyer, not to you.

MikieTaps · 07-09-2009, 11:39 PM

Originally Posted by Armand

agreed, but most people will still keep that as a last resort lol

this seems like the last resort is the point hes at.

KRAKR · 07-09-2009, 11:55 PM

If you still have your full coverage insurance, have your friend "steal" it. That way the loan gets paid, and you don't have to have the repo on your record.

fastfoodfred · 07-10-2009, 05:28 AM

Originally Posted by KRAKR

If you still have your full coverage insurance, have your friend "steal" it. That way the loan gets paid, and you don't have to have the repo on your record.

Pretty fucked up to even think like that.

fastfoodfred · 07-10-2009, 05:29 AM

Originally Posted by KRAKR

If you still have your full coverage insurance, have your friend "steal" it. That way the loan gets paid, and you don't have to have the repo on your record.

That is theft, from the insurance company. It's just a motorcycle, he can get another one when he gets a new job.

fastfoodfred · 07-10-2009, 05:32 AM

Originally Posted by Armand

I dont think it's fake, but it does seem like he might not know that you can just go to the bank and get the title from there lol.

Originally Posted by JasonM

Best advice is to sell it, quickly. As has been said, sell it for what you owe on it and make it clear to the buyer that you can go to the bank together and have the buyer pay the bank so that the bank will relinquish the title to the buyer, not to you.

I would bet he can't sell it for what he owes. I bet he owes $7500 and it's only worth about $5000.

ninja-rida · 07-10-2009, 05:41 AM

Can't afford it? Then don't buy it. Pretty fucking simple me thinks

Devil_Doc · 07-10-2009, 09:24 AM

I think the point here isn't whether or not he should have financed it in the first place, or whether he shouls start flipping burgers. I think what he was asking was what he should do right now. Mistakes already been made...

KRAKR · 07-11-2009, 08:32 AM

Originally Posted by fastfoodfred

That is theft, from the insurance company. It's just a motorcycle, he can get another one when he gets a new job.

It's not really theft if you think about it. You pay your insurance company money for absolutely nothing, for the chance that something "might" happen. All I'm saying is "make" something happen and get your money's worth.


06-10-2009, 03:42 PM	#21
watskooo Licensed Joined: Mar 2008 From: Spokane, WA I Ride: 2002 RC51	I've been thru a voluntary repossession and just giving them the vehicle back doesn't end your troubles. They will sell it at auction and if they don't get what you owe then you are on the hook for the difference. I doubt they are under any obligation to honor the $5000 amount if you owe more than that. If you can't pay the difference when they ask for it, they can charge you interest, and if you can't make payments they can charge you late fees. You do not have to get the money before you can sell the bike. It's a little more work, but you can work with the buyer and the bank to get it paid off and sold at the same time. I'd say selling the bike is your best option, it keeps the repossession off your credit report and you have a little more control over the amount you end up paying to get out of the loan. __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 09:28 PM	#24
rider80 Newbie Joined: Jul 2009 From: Tacoma, Wa	You can listen to all of them and either take it in the ass or hide it, either way its going to hurt. Fortunately enough for me, im in the military and if do a voluntary repo, I just remind them that I have the option to relinquish anything that I have tried to buy with no reprecussions and they cant take me to court to get it back. I had to PCS (Permanent Change Station) overseas and I could only take one vehicle, so i had to get rid of one because they werent goin to pay for my storage, so I called and told them they needed to come get their Jeep. Military clauses are the best way out of it, but my credit is still crap till 2014. __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 09:38 PM	#25
bubba_zenetti Superbiker Joined: Dec 2005 From: Marysville I Ride: A lifted JK 0\|\|\|\|\|\|\|0	learn to stunt on it. give it back to them after you wad it a few times __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 09:40 PM	#26
fastfoodfred Moto2 Champion Joined: Mar 2006 From: spokane, wa I Ride: 2008 SXV4.5 + 1985 RZ350 + 2010 YZ250F +	Is it possible this is fake?! Never buy a vehicle with no title. One more time NEVER BUY A VEHICLE WITH NOT TITLE. I reread the original post and this guy is trying to sell his bike and has no title for it. What is going to happen is that you will be promised the title as soon as his check comes through for the settlement, and he will take your money and his and get the title. I don't think so. He is more than likey going to run with your money and leave you with a bike that is essentially stolen from his bank, and is still going to get repo'd. I hope I am not correct, but this makes no other sense to me. __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 09:42 PM	#27
Hawkfan79 Training Wheels Joined: Jun 2009 From: Port Orchard, WA I Ride: Trying to decide....	Pay your bills... __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 10:49 PM	#31
mikxm Endorsed Joined: Sep 2006 From: Klamath Falls Or. I Ride: 86 GSXR 750	Good Luck finding a Job flipping Burgers even. __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 11:19 PM	#32
JasonM Endorsed Joined: Sep 2008 From: Lake Stevens, WA I Ride: 2006 GSX-R 750	Best advice is to sell it, quickly. As has been said, sell it for what you owe on it and make it clear to the buyer that you can go to the bank together and have the buyer pay the bank so that the bank will relinquish the title to the buyer, not to you. __________________ Follow PNW Riders on Facebook and Twitter


07-09-2009, 11:55 PM	#34
KRAKR Licensed Joined: Mar 2009 From: Lebanon, Oregon I Ride: '09 R1, '00 YZ426f, '05 Banshee, '02 Banshee	If you still have your full coverage insurance, have your friend "steal" it. That way the loan gets paid, and you don't have to have the repo on your record. __________________ Follow PNW Riders on Facebook and Twitter


07-10-2009, 05:41 AM	#38
ninja-rida Peg Dragger Joined: Apr 2008 From: Da Hood I Ride: 2006 ZX-6R	Can't afford it? Then don't buy it. Pretty fucking simple me thinks __________________ Follow PNW Riders on Facebook and Twitter


07-10-2009, 09:24 AM	#39
Devil_Doc Superbiker Joined: Sep 2008 From: Puyallup-ish I Ride: 04 CBR1k	I think the point here isn't whether or not he should have financed it in the first place, or whether he shouls start flipping burgers. I think what he was asking was what he should do right now. Mistakes already been made... __________________ Follow PNW Riders on Facebook and Twitter

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