Sometimes re-affirmation is not so bad....

[shark]

I got my re-affirmation agreement for our car. It is financed by Wells Fargo. We have owned it since May. Get this... They lowered my interest rate by 2.81% and knocked about 2k off the principle which brings what we owe below market value. It also lowered my payments 58.00 monthly.

[b_girl]

That's great! I'm glad your lender did this for you. Our lender refused to consider doing anything during our bankruptcy...kept saying they couldn't, but might after we re-affirmed. Course we didn't sign the paperwork and have already given that vehicle back to them.

[soleprop]

shark, that's great news and i've forwarded this thread to a friend who is considering ch7 and wants to keep their car but it is really upside down (they owe $13k for a $7k valued car). i hope my friend comes and sees this thread!

was there anything you said to WF that initiated this generosity or did they do it on their own?

thanks for sharing!

[shark]

was there anything you said to WF that initiated this generosity or did they do it on their own?

thanks for sharing!

They did it on their own. I had been riding their butts about getting it to me to review!! Maybe they thought they should make it a good offer.

[TEW]

Thats great Shark

[JRScott]

Good to hear Shark, perhaps they are figuring out that they can make more money working with folks than just to let it all be lost in bk

[downwardspiral]

WOW, I had not idea that could happen. I'm really upside down on my car, but I'm reaffirming because I know it'll be hard to get a loan loan post BK.

[JollyGG]

My auto loan was with Wells Fargo as well. When I got the reafirmation it was for a lower interest rate and lower monthly payment as well. I was almost done paying it off so it didn't make that much difference, but was still nice.

My guess is Wells Fargo does this to try and entince people into reafirming.

Oddly enough Wells Fargo Auto finance got the reafirmation to me right away, lowered my interest rate and payments. Was really easy to work with on the reafirmation and on getting payments to them during the period of time that automatic deductions weren't happening. But Wells Fargo Mortgage was impossible to get reafirmation papers from, refused to file them and kept sending me unsigned reafirmations. My lawyer had to send tons of faxs to get it done. It really seemed that they didn't want a reafirmtion on the house. It just goes to show that at the big banks the left hand really doesn't know what the right is doing.

[AngelinaCat]

That's great Shark!! Shows what being persistant can do for you. It also helps that the automobile market has been hit by the economy.

[downwardspiral]

So if they can lower the interest rate and principal, can they also increase it?

[JollyGG]

So if they can lower the interest rate and principal, can they also increase it?

In theory. However, it isn't in their best interest. A reafirmation benifits the creditor. If the debtor chooses not to reafirm they can walk away from that car whenever they want to. If presented with a reafirmation that has an increased principal or interest rate the debtor won't reafirm. A reafirmation has to be signed off on by either the debtors lawyer or by a judge who says that this agreement does not pose an undo hardship on the debtor. So therefore this isn't even an issue where an increase can be snuck by an unsuspecting debtor. They have others looking out for their interests.

Usually, you reafirm at the same terms. It seems that Wells Fargo and others have decided to offer a little extra incentive to get the reafirmation signed.

[BKdinOhio]

They may also see that since your having a ton of debts dismissed by the court that your less of a risk to default. The offer you a lower interest rate (they'll still make money off of you), and a lower payments.

It's a potential WIN-WIN for both parties. They don't have to go to the expense of repossessing the vehicle; nor do they have to the expense of trying to sell for auction the vehicle; nor do they have to worry about getting less for the vehicle than it's worth, and writing off the rest.

In the end you get to the keep the vehicle if you wanted to keep it in the first place, they don't loose near as much money on the deal than they would have.

Anyone know if Chrysler Financial does this?