722 Redemption

[StaciMM]

We looked into getting a redemtion loan on the car (worth $5k, owe 21 X $369 + $7k balloon payment). Applied w/ 722 Redemption (.org) w/ just DH's name as he has less on credit and my job history is brand new. They came back that they couldn't do a redemption loan (not surprising, his name isn't on the car) but did approve us for their wholesale program to purchase a used car w/ low mileage.

I'm going to talk to him today for more info-will post here an update in case it might help anyone else. So far, I like them. Have been doing contact by email, which I prefer, and I haven't had to send anything yet. (Though I told him we had no issue w/ sending check stubs, as DH has income from 2 jobs.) When we gave him the go ahead to run the app, he did say the payment would be $250-300 / mo generally. APR will be high, but it won't be an inflated purchase price.

The car we have is in questionable shape. We got it new in Aug. '02 but used it for a part time job that puts alot of mileage & wear & tear on it. I mainly want out from under the balloon payment, and figure if we can get something decent for wholesale rather than retail, that might be a good move.

[StaciMM]

Edited to remove the glowing praise, in case someone reads the top of the thread and not the final result...

Might be good for someone who has no car and needs something before discharge. But, if you have options, this isn't a good idea...

[StaciMM]

Shoot! They have what I want now. Hope they have something similar in a month or so! (Its an '03 Taurus. A Taurus (00) is what I wrecked, I liked that car and I was told that if I had been in something else I would not have survived the accident.)

Even though its the same year as what we have, it has nearly 20k less miles.

[sunshine08]

Our attorney refered us to redemption financing. Did check into, given good rates, etc. Pre-approval was fast. Also, FYI, we have gotten about 25 offiers from local car dealers specializing in helping people that have filed bankruptcy. We did check into a couple of them, you had opportunity to see the cars,etc. Also many had factory warrant or you could get an extended warranty reasonably. The interest rate we were quoted was a little less. We just got lucky and got into another vehicle, newer, better shape, less that 19,000 miles @ 18%. We did that and turned in one of our vehicles. Our other vehicle is 15 months old and was new when we got it. Hopefull we can save some money and in a couple years be back to normal. We too put about 900 miles a week on our vehicles, (together).

[StaciMM]

Update-
I had to say thanks but no thanks in the end...

He came back to me today and said $9100 was the 'wholesale' for a 2002 Taurus. I don't have access to NADA wholesale, which is what they supposedly use-but NADA retail for the same vehicle is $9375 and wholesale should be less. I'm not going to pay 24% APR for that.

So, between now & December we'll most likely keep making payments on both of the vehicles we have-not reaffirm either, and get a replacement for the Mitsubishi sometime in the next year or so.

[AnnieG]

722 Redemption after discharge?

Hello-
We are about 3-weeks away from discharge.
We are in the situation where we owe far more than the car is worth. I don't want to make any waves until discharge, so my question is, can you use the 722 services AFTER discharge to negotiate a fair market loan on a vehicle - I believe it's call "cram down"?

[StaciMM]

Cram down is in chapter 13, where the overage is treated as an unsecured debt and gets paid back at a portion while he secured part is paid in full.

Chapter 7 allows for redemption-where you can redeem the vehicle from the lender by paying the fair market value. You have to do it before discharge, though. If you have family that you can borrow from, this could be a good move. 722redemption does offer redemption loans. If you're upside down enough, the high APR may be offset by repaying a lesser amount.