My car is all mine!!!!

[LadyInTheRed]

I posted in another thread 2 days ago that the trustee would make the last payment on my car in August and wondered whether I would get my title after the trustee sent the last payment or after discharge. But, I got a letter from Honda Financial yesterday telling me my loan is paid in full and I will receive the title within 15 days! This is not a complete surprise. My plan provides that Honda will receive 6% interest even though the original loan was at 1.9%. Honda is apparently satisfied that it has been paid what is due under the original terms of my loan.

I wonder if they will accept the additional payments from the trustee or if they will send them back. Doesn't really matter to me. What doesn't go to Honda Financial will go to unsecured creditors. I'm just happy that my car is all mine! I bought it right before filing BK and it would have been another year before it was paid off if I hadn't filed. Actually, I probably wouldn't have bought a car if I weren't filing BK. I wouldn't have been able to afford that while paying on my 2nd mortgage and credit cards.

[TooMuchCredit]

Congratulations! I know i'm looking forward to getting my grubby hands on my car's title when my discharge is complete! It's interesting that you paid a higher interest rate than the original contract.

[dmc-2008]

Congrats! You are almost done too right?

[LadyInTheRed]

Thanks for the congrats.

I know i'm looking forward to getting my grubby hands on my car's title when my discharge is complete! It's interesting that you paid a higher interest rate than the original contract.

I thought it was weird when I saw the rate on my proposed plan. The attorney told me that it is the standard rate paid in our court for secured debt. I started to argue that it wasn't fair, but then realized that it was the unsecured creditors, not me, who would be hurt. My plan payment would be the same regardless of the interest rate. So, I dropped it. So far, I've only paid what was in the original contract. It will be interesting to see if the trustee keeps paying Honda and if they accept the payments.

You are almost done too right?

I guess that depends on what is almost. I just made payment number 48. 12 more to go! I guess 80% done is almost. My next milestone is in August when I make the last payment on my 401k loan. That will give me another $300 a month. That's when I'll start working towards building savings equal to 3 months of wages. I think I'll try to forget the 12 months and look forward to 4 months from now.

Actually, what I really look forward to is when I will stop being so anxious for time to pass. I'm not getting any younger!

[sophieanne]

Congratulations Lady...i understand your situation totally. I was in the same situation...purchased a car just before filing (at the strong suggestion of my lawyer). The rate was also set at 6%. Interestingly enough, my trustee chose to pay if off before anything else as it was the only secured debt (all the rest was unsecured credit card debt). Car was paid off and the title back to me within 5 or 6 months after fi,ing...i was very happy. (I'm in a 100% plan)

You and I have had a few similiarities..this and the adjustable rate mortgages we both currently enjoy at 3%. I was wondering how home values are doing in your area? In mine (western wa) the values are still down...my home is still 80,000 underwater. I'm still taking a wait and see attitude ...may walk away before the end of the 13 if I don't see an improvement. Right now the mortgage payment is so low, it would be dumb to walk away (other than no taxes, HOA dues, etc.).

Anyhow, again, I'm very happy for you!

[AngelinaCat]

YEA!!! CONGRATS!!!

[LadyInTheRed]

Hi, Sophieanne. Values here in the S.F. Bay Area have been rising slowly overall. San Francisco itself never really crashed like most other places because there is so much demand by high paid tech industry workers. There are also a lot of foreign investors paying cash. My house across the bay crashed from a high of about $426K to a low of around $150K. I paid $355K a couple of years before the crash. I'm in an area of low income for the Bay Area, so there have been a lot of foreclosures in my neighborhood. I live within commute distance of S.F., so that helps a little and keeps me cautiously optimistic. I rely on Zillow for value of my house, which I know isn't very reliable. When I filed, it showed the value at around $180K. It now shows it at $234K after a $2500 drop in the last 30 days. The balance of my 1st mortgage is at about $250K. So, it is possible I'll be about even when I am discharged.

California is a no-recourse state. So, I can walk away at any time without worrying about a deficiency. I also figure that when I bought the house, I knew I'd be paying the mortgage for 30 years. That hasn't changed and I don't plan on going anywhere. But, I will feel a lot better when I have enough equity to refi to a fixed rate loan, even though I'll have pay more interest than the 2.85% I am paying now. At least with the 2nd gone, if I can't refi, I will have the ability to absorb payment increases when interest rates start to go up.

[sophieanne]

Hi Lady,

Thanks for writing back. I love San Francisco and I believe nothing but good should happen in your area. Like I said you and I have been in a similar situation, my mortgage rate also goes to 2.85% effective May 1st. Unfortunately my part of WA state has not started recovering, values are still going down. I like reading all your posts because of the knowledge you have to share and because some of our situations have been similar. WA state is also a no-recourse state...so i guess my need to leave while in 13 may not be as much of a decision as I thought. I guess i was thinking doing it through the 13 might be easier...was that a wrong thought?
Thanks again for your note back, I've been meaning to ask you about home value for the last couple months.

[LadyInTheRed]

YEA!!! CONGRATS!!!

Thanks!

WA state is also a no-recourse state...so i guess my need to leave while in 13 may not be as much of a decision as I thought. I guess i was thinking doing it through the 13 might be easier...was that a wrong thought?

The only advantage of having the mortgage discharged that I can think of is that if you walk away, they won't be able to report your late payments on your credit report. I don't care much about that. But, I'm not as underwater as you and the chances of me walking away are pretty small.

I love S.F. too. I just wish I could have afforded to buy a house there. I moved out of S.F. so I could own my home and have some dirt to garden in. The nice thing is that I commute on the ferry to work in SF and get to enjoy the beauty of the bay views every day... when I'm not posting on bkforum, that is.

[keepmine]

Congrats here as well.
I just wish people who are horrified at the prospect of a Chapter 13 read your posts and realize it really is doable.
It's like a lot of things in life-you just find a way to handle it because there aren't many other options.

[dmc-2008]

Congrats here as well.
I just wish people who are horrified at the prospect of a Chapter 13 read your posts and realize it really is doable.
It's like a lot of things in life-you just find a way to handle it because there aren't many other options.

Isn't that the truth esp. After you file! Gotta keep your chin up and move forward. I try to go one day at a time.

[spidge]

Congrats on the car payoff. I did not buy a new or newer car and am now struggling with repairs on my '01.

Still fighting.

[LadyInTheRed]

I just wish people who are horrified at the prospect of a Chapter 13 read your posts and realize it really is doable.

Me too. That's a big part of the reason I stick around. The more scared potential Chap 13 filers who see my signature, the better.

[angel2002]

Congrats Lady! It is a great feeling to get that title in the mail!

[pamkev]

Great News Lady and Aug will be here before you know it