Info Re: 722 Redemption

[Beach Bum]

For those of you in my shoes, I have 2 vehicles I need to reaffirm and I'm weighing my options.
I found the 722 redemption website and looked into what they have to offer.
Basically if you qualify, budget, etc, they basically buyout your vehicle and refinance it with US Bank.
The good part is that you only refi the current market value of your vehicle not what you owe.
The big negative is their rates. 24%!!!!!!!!!!
For a $25k vehicle that's around $700 for 60 months!!!!

With that said, I will be weighing my other options.

[BKTango]

The redemption loan is perfectly set up for those that have a vehicle that has greatly depreiciated in value and owe far far far more than what it is worth. For a newer vehicle with alot left on the value ....yeah the interest is gonna kill you. So if you have a vehicle that you still owe $15,000 but it's only worth $5000 you might want to consider the redemption loan. Very wise choice to seek out other options in your situation.

[SinkingFast]

You can attempt to negotiate new terms with your current Lender(s) during the Reaffirmation process. New principal balance. New term. New interest rate.

You can file an "Intent to Reaffirm" then not follow thru. If the signed Reaffirmation Agreement is not filed with the Court by the time you're Discharged, your personal responsibility to the auto loans will be Discharged as well. If you need to Surrender at a later date, you're free to do so.

Or, you can Surrender during BK. Make due until you're Discharged. Then apply for new, post BK financing and buy a different car.

Several different options available to you. You've just got to figure out what's gonna work best for you in your particular situation.

[phoenix44212]

So you can intend reaffirmation, never fill out the reaffirmation agreement, go through discharge and then after bk find a new car and surrender the old without incurring a deficiency or any problems?

[lrprn]

So you can intend reaffirmation, never fill out the reaffirmation agreement, go through discharge and then after bk find a new car and surrender the old without incurring a deficiency or any problems?

If you don't sign the reaffirmation agreement or the lender doesn't accept the reaffirmation agreement, then there's no legal responsibility to repay the loan after bankruptcy wipes it out. When you sell the asset (in this case a car), if the sale doesn't pay off all of the original loan, you don't owe whatever is left over.