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Got reaffirmation agreement in the mail

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    Got reaffirmation agreement in the mail

    The one for the vehicle we're keeping regardless. (The other-not so sure!)

    I was a little concerned when I read it, it lists a total amount that is higher than what our 'current' payoff amount is but I think they listed the total amount, including interest, of our remaining payments. Does this sound about right? Or if I sign it, am I agreeing to pay back extra? (Our current payoff amount is about $17,500 but the letter says $20,593. We have about 41 payments remaining at $504.02.)

    I will try to get them to agree to less... FMV is about $10-12K depending on the source. I figure if we surrendered it, they would sell it at auction and get $4-7k at best. It has some minor defects (minor dent on one side, needs tires, windshield has a crack) but it is a reliable vehicle and should last a while if well cared for. I'm going to suggest I repay $12,000 at the current interest rate & # months. No harm in trying!
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

    #2
    If the vehicle is worth less than what you owe, I would not reaffirm it. Just keep paying for it or let them come and take it.

    However, if you can get them to agree to the lower payback amount then it might work in your favor.

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      #3
      That is my intent... We are keeping the vehicle-I think it would be in the lender's best interest if I had an obligation to pay & it would be in mine to adjust the terms. We'll see! If they don't see it that way, we will not sign the reaffirmation. (I think any positive gain we'd have by credit reporting/score would be offset by having a $504.02 monthly vehicle obligation. We HOPE to buy our house in 2007.)
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

      Comment


        #4
        Originally posted by StaciMM
        (I think any positive gain we'd have by credit reporting/score would be offset by having a $504.02 monthly vehicle obligation. We HOPE to buy our house in 2007.)
        That is our plan as well. For the past month I've been working on Experian and got my score to 655 and my wifes to 651. Not great, but not bad considering we are only a month discharged.

        I checked the other two the our scores were in the mid 500s, with many of the tradelines still not reporting correctly.

        We didn't reaffirm either our house, or our minivan.

        I would think that 12 - 18 months should be enough time to get your scores back up.

        Anyway, good luck negotiating with the bank!

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