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siren
LIF Infant
Member since 8/07 219 total posts
Name:
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financial question - car loan
My brother has terrible credit and my mom took out a car loan for him using her good credit (don't even get me started on how this was not a good idea). My brother was making the payments for a while, but stopped a few months ago. My mom is making the payments, but cannot afford to keep doing so and will deplete her small savings shortly. I already pay her mortgage and some of her living expenses, and I am not taking on this loan.
Any advise on what she should do? What are the penalties for not paying a car loan - I assume they take the car and I think there was a pretty stiff penalty for defaulting the loan (around the price of the loan). Is there anyway we can renegotiate? Return the car?
Thanks!
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Posted 12/1/08 9:56 AM  |
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Long Island Weddings
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: financial question - car loan
is it a lease or a loan?
can you sell the car?
you really don't want to go with having it re-possesed. Why can't your brother pay it? if he can't pay it, I would sell the car.
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| Posted 12/1/08 10:50 AM |
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siren
LIF Infant
Member since 8/07 219 total posts
Name:
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Re: financial question - car loan
It's a loan, not a lease. My brother is kinda a jerk and won't talk about why he's not paying (part of it is b/c he bought his fiancee an engagement ring that he can't afford) and if my mom brings it up he yells at her and says that she's giving him a hard time. If I bring it up, he just hangs up on me or leaves the building if we're face to face. He also won't surrender the car to be sold.
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| Posted 12/1/08 10:54 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: financial question - car loan
tough situation. If you let the car get re-po'ed he will lose the car and your mom's credit will go bad.
Did you threaten to let the car get re-po'ed?
can you have someone else intervene?
Obviously there is so much more to this. He sounds like he has so many issues and this is just one of them.
I would threaten will default on the loan. It will kill his credit more and hurt your mom's credit if it happens but he will lose the car and it will get sold at auction.
I guess he feels no remorse about treating your mom like crap?
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| Posted 12/1/08 11:44 AM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: financial question - car loan
Posted by siren
he also won't surrender the car to be sold.
If the car loan is in your mom's name--she could work out a deal with the car company for a voluntary reposession...basically they take the car back many times will sell it at an auction and subtract the value of the car or the amount they got at the auction to what is owed on the vehicle--and the remaining amount is negative equity that needs to be paid. she could call up the loan company and let them know about this, and tell them where they can find the car. he doesn't have to surrender it--they will just take & reposess it by tow truck.
chances are -- this will wind up being the best option for her if he refuses to pay the car note and her credit is already getting affected. at least this way she might be able to work something out with the loan company.
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| Posted 12/1/08 3:05 PM |
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siren
LIF Infant
Member since 8/07 219 total posts
Name:
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Re: financial question - car loan
There are so many problems with my brother and he treats my mom so badly. It hurts to watch - what's worse is that she puts herself in this position over and over again. I think I have finally gotten her to realize that her lending my brother money is really her lending my brother MY money, since she doesn't have any. We're working on preventing her from doing this any more.
Thank you for the voluntary repossession idea. I didn't know that was a possibility. That really might be the best thing....
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| Posted 12/1/08 4:04 PM |
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Re: financial question - car loan
thats a really tough situation. Can you sell the car? I don't think there are very many other options. They will take the car if you are 90 days past due.
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| Posted 12/1/08 6:47 PM |
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