Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Car loan-722? Any input on 722 redemption?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Car loan-722? Any input on 722 redemption?

    I was answering a post in the repossession section about an auto loan (http://www.bkforum.com/showthread.ph...lateralization) and this 722 redemption talk came up. I had recently also received a flyer in the mail about this 722 redemption thing, where they assure they are an alternative to a reaff. Being me, I emailed my attorney inquiring about this as an alternative to us (we are doing a reaff with Ford) and he readily admitted having heard about it but never having done one. Does anybody here know how this works, what happens to the settled balance, etc?

    Thank you
    Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
    AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC

  • #2
    Bump
    Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
    AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC

    Comment


    • #3
      A 722 redemption supposedly allows you to cram down your car loan to what the market price of the car is. It's good for cars that are underwater a great deal. A 722 also allows you to have a positive trade line reporting to the credit bureaus post bk. A 722 redemption loan will report to the credit bureaus. This is better than keeping the car and not reaffirming, although reaffirming the car should also report to the bureaus.

      Sometimes the interest charged on 722 redemption loans is really high though. Ymmv of course. If you are not underwater and have a relatively decent interest rate on the car, 722 redemption probably isn't going to help you much.
      You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

      Comment


      • #4
        Once again, thanks B2S. I'm going to talk with them today, but from what I gather, they will not be an avenue for me..one of my lawyer's associates calls the rates he's seen almost predatory. Bottom line I'm a bit upside down on the car, but that won't be enough for the difference between the 5.9% I have now to their high 20's or whatever. We'll see what they say, but thanks for the input.
        Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
        AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC

        Comment


        • #5
          Redemption works if you are already WAY upside down in value and have a somewhat high interest rate already. But, there is more to the deal than interest rate. The 722 redemptions that I have seen do actually put the debtor in a better position with the car, the reduction in principal more than makes up for the higher interest rate of the redemption loan. Over the life of the loan, the debtor pays less to pay off the car.

          You just have to run the math. I have a few examples floating around in the different threads on this issue.

          Comment


          • #6
            Thanks HHM. That's what I intend to do after talking with them, run the numbers. Doubt it'll work for me, but we'll see.
            Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
            AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC

            Comment


            • #7
              And the result on 722redemption.com is:

              I have a 2010 Ford purchased in february with no down at a 5.9% with full maintenance plan and extended warranty thrown in to 75K miles. Right now, my monthly payments are 519. The difference between loan outstanding and KBB private party (good condition) value is approx 8.5K.

              I called this company to explore the option. What they do is they will offer your creditor KBB private party fair condition value on your car and "hope" they'll agree to settle for that. In my case, this created a differential of about 10.5K between outstanding loan amount and the "fair market value" they used.

              Their base (starting) interest rates are in the high 20's. They do not determine your minimum rate by your credit report or score. Once you apply, if you have a history of car payment problems, repo's, etc, they may actually raise your rate beyond high 20's, but never lower.

              Given the above, the best they were able to come up with for me was monthly payments in the amount of 569, so effectively higher than what I'm paying now. The 10.5K loan amount difference was not enough to offset the jump in interest rate from 5.9 to high 20's. Even their rep, who gets paid to make the sales, told me in my case it was not an advantage and that I was better of with a reaff.

              You have to be extremely upside down on your loan and/or have an already high interest rate to begin with in order for this to really be an option for you beyond reaff or surrender.

              Footnote: If you lender does not agree to settle for the reduced value they offer, they also offer a myriad of previously owned vehicles at "wholesale" prices so that you can purchase a vehicle if you need to surrender yours. Again, the interest rates make it a no go for me, but someone else may make sense for someone else.

              Cheers.
              Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
              AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC

              Comment

              Unconfigured Ad Widget

              Collapse
              Working...
              X