722 Redemption

[sickandtired8]

We filed Ch 7 on June 20th. We are upside down on our vehicle about $15000 and were talking about doing the 722 redemption. Can anyone tell me what the interest rate might be? What kind of vehicles can you get? Are they descent? What scares us is that you can't even look at the vehicle until you are approved. Thanks for any help! SandT

[Beach Bum]

Rate is 24%
If you are that upside down why don't you just let it go?
You could probably get a loan for a new car with a rate between 12-19% at worst after you receive discharge.
You'll most likely be able to keep your car until you're discharged anyways. Worst case is that if you let it go they could repo it 46 days after your 341, since you need to file a reaffirmation by the 45th day after your 341. But typically they would need to file a motion to lift the automatic stay and that may take an extra 30 days anyways.

I'm in a similar situation. I thought about the 722 redemption, until I was told what the rate would be. Luckily we have 3 cars, one paid off and another we're able to reaffirm. We're letting my daily driver go and then we've been told by lenders that they will finance a new car for us the day after we receive discharge.

[HHM]

Unless the current car finance company will ALLOW you to do a redemption loan for the "current" market value of the car, then don't do it...you are too upside in the car. And yes, the interest rate could be fairly high.

[sickandtired8]

Rate is 24%
If you are that upside down why don't you just let it go?
You could probably get a loan for a new car with a rate between 12-19% at worst after you receive discharge.
You'll most likely be able to keep your car until you're discharged anyways. Worst case is that if you let it go they could repo it 46 days after your 341, since you need to file a reaffirmation by the 45th day after your 341. But typically they would need to file a motion to lift the automatic stay and that may take an extra 30 days anyways.

I'm in a similar situation. I thought about the 722 redemption, until I was told what the rate would be. Luckily we have 3 cars, one paid off and another we're able to reaffirm. We're letting my daily driver go and then we've been told by lenders that they will finance a new car for us the day after we receive discharge.

You can get a new car loan right after BK for 12-19%? Where? Thanks! S&T

[SinkingFast]

You can get a new car loan right after BK for 12-19%? Where? Thanks! S&T

StaciMM, a former poster here, actually got a car from a 722 Redemption Loan Lender. Evidently you have to pick from what they have available. Their car was "shipped" in to them from where ever. They selected it sight unseen. I believe there was one minor problem with the interior. Nothing mechanical. Other than that, they were pleased with the car they got.

When we were car shopping, the local Ford Dealer offered us 11% with AmeriCredit. As BK friendly as folks have posted Ford Motor Credit is, FMC wouldn't touch us without a significant down payment. So we applied elsewhere. We were quoted 8.95% by CapOne Blank Check. Then we applied with RoadLoans.com and got 5.99%.

No money down. Paid Gap Insurance and sales tax right at the Dealership when we bought with our Blank Check from RoadLoans.

[sickandtired8]

StaciMM, a former poster here, actually got a car from a 722 Redemption Loan Lender. Evidently you have to pick from what they have available. Their car was "shipped" in to them from where ever. They selected it sight unseen. I believe there was one minor problem with the interior. Nothing mechanical. Other than that, they were pleased with the car they got.

When we were car shopping, the local Ford Dealer offered us 11% with AmeriCredit. As BK friendly as folks have posted Ford Motor Credit is, FMC wouldn't touch us without a significant down payment. So we applied elsewhere. We were quoted 8.95% by CapOne Blank Check. Then we applied with RoadLoans.com and got 5.99%.

No money down. Paid Gap Insurance and sales tax right at the Dealership when we bought with our Blank Check from RoadLoans.

Can you tell me what kind of car he/she got with the 722 redemption? Thanks for any input! S&T

[lrprn]

Can you tell me what kind of car he/she got with the 722 redemption? Thanks for any input! S&T

S&T, here's the thread where StaciMM talks about her 722 redemption loan - http://bkforum.com/showthread.php?t=4992&highlight=722 . Happy reading!

[SinkingFast]

There are other ways too.

You can file an Intent to Reaffirm and then negotiate new terms with your current Lender. If you're upside down, get the LTV ratio back in line. Possibly keep the same rate or get a better rate than before. Maybe even extend out your term to get lower monthly payments.

Some Lenders would rather negotiate with you, and have you reaffirm, that to loose you business all together.

So that's a thought for you too.

[sickandtired8]

StaciMM, a former poster here, actually got a car from a 722 Redemption Loan Lender. Evidently you have to pick from what they have available. Their car was "shipped" in to them from where ever. They selected it sight unseen. I believe there was one minor problem with the interior. Nothing mechanical. Other than that, they were pleased with the car they got.

When we were car shopping, the local Ford Dealer offered us 11% with AmeriCredit. As BK friendly as folks have posted Ford Motor Credit is, FMC wouldn't touch us without a significant down payment. So we applied elsewhere. We were quoted 8.95% by CapOne Blank Check. Then we applied with RoadLoans.com and got 5.99%.

No money down. Paid Gap Insurance and sales tax right at the Dealership when we bought with our Blank Check from RoadLoans.

I did not even get 5.99% when I use to have excellent credit. Isn't that highly unusual? S&T

[sickandtired8]

There are other ways too.

You can file an Intent to Reaffirm and then negotiate new terms with your current Lender. If you're upside down, get the LTV ratio back in line. Possibly keep the same rate or get a better rate than before. Maybe even extend out your term to get lower monthly payments.

Some Lenders would rather negotiate with you, and have you reaffirm, that to loose you business all together.

So that's a thought for you too.

Thank you so much! S&T