OK so I am in credit hell, my ex bought a truck a few months ago and used me on the loan for income sake, because my credit was shaky, now he is defaulting on the loan and I cannot afford another payment, because i just got a new car a couple months ago. I talked to the bank and could bring it current but he won’t keep the payments up, so they may repo it and sell it at auction with the balance owed in our names, is there any other solution?? Has anyone been through something like this?? What should I do?
Originally posted 2009-03-28 16:01:12.
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{ 6 comments… read them below or add one }
If they repo the truck and sell it for less than what’s owed, both you and your boyfriend will receive 1099-C forms for the cancelled debt. At least one of you will have to put that on your income tax returns as INCOME.
The best thing that has come out of this is, lets hope you learned something…..never co-borrower for anyone! This will be on your credit forever. The worse thing is if they sell it for less than you owe they can come after you in the form of a collection. The best bet is to have your boyfriend allow you to sell the car and have someone take over the payments/or secure their own loan. You are better selling the car yourself then letter the bank repo it!
Well the good news is you already have a car . I would not continue to pay notes or bring it current because your just throwing away money if he will not pay. You should find out what the truck is worth by going here if you owe about what its worth try and sell it . If you have negative equity there is not alot you can do but let the truck go back. I would refer you to this site for your legal help as the bank will come after you for the diffrence that you owe and what it sells for at auction. Go here . You may also try and find some one you trust to assume the payments as its better than a repo. Good Luck
If you are upside down on the truck loan, you will be better off to try to sell the truck privately. Take out a loan to pay the difference between what you owe on the truck and what you are able to get for it in a private sale. That is much better than having a repo on your record.
If you have any ownership to the vehicle at all, try to sell it. Additionally, you may want to reach out and touch members of his family that might be willing to help. He might have too much pride to help himself keep the vehicle.
Whatever you do, don’t make any more payments on the vehicle. Think of it this way…every payment you make will be split in half (with half going to him) when the vehicle is repossessed.
Same thing happened to my sister…sorta.
She married a guy straight out of high school (oh yeah, it gets better). And it turns out this guy had a repossed vehicle on his credit when she was 14….BUT, because she married in a Common Law state, its now on her record. It was a short lived marriage, but the repo is STILL on her record…and she gave up trying to get it off too.
In this situation, though, it sounds like you two were divorced before you were put on the loan. If that is the case, you would have had to have signed the co-sponsor on the loan…if you didn’t its illegal. This can be founght and won in no time flat; but its going to be a pain in the @$$.
Now if this is an ex-boyfriend, and you DID sign the loan too…then this gets a whole lot worse. You have partial ownership of the vehicle. I would sell it out from under him and use the proceeds to pay off the bank loan. You will likely still be upside down on the loan, but at that point you can work the arrangements out with the bank….believe it or not, these people can be reasoned with.
Hope this helped.
Good luck!