Reaffirm vs 722 Redemption?

[Debbie2]

Ok I'm gonna' try make this as simple as possible...

I received reaff. papers w/ HSBC for my car because I really do want to keep my car. I've been lurking on here and found out about the 722 redemption loan program.

I was approved for a cheaper amount on my car w/ 722 redemption.

I never signed the reaff. papers for HSBC even tho I'm still making my payments on time. I will be discharged on Jan.29. Is it possible for 722 to still help me or should I just get prepared to let my car go?

I really can't afford to let my car go because that's my only transportation to/from work.

I'm sooooo confused

[prid]

From what I understand from all of my reading here, you should be fine without reaffirming. If you can get the 722 and it's less for you, then you may want to go that route. If you continue to make your current payments, they will not take the car.

[TEW]

has the lender or your lawyer tell you that you MUST reaffirm or redeem the car to keep it?
If not you can just keep making the payments and keep the car.

[jencz]

Can someone tell me what a 722 is?
I tried searching for iot on this forum but no luck.....

[Debbie2]

Can someone tell me what a 722 is?
I tried searching for iot on this forum but no luck.....

https://www.722redemption.com

[jencz]

www.722redemption.com

Thanks Debbie, unfortunately they are w/US Bank whom I have a cc that I am bankrupting so they may not work with me, but hey, I can always ask...

Thanks again!

[prid]

Probably won't work. We were denied because of US Credit card.

[jencz]

Probably won't work. We were denied because of US Credit card.

That's what I thought.....

[endisnear]

Do you have to have had the car for so long, like with doing a cram down? Or does that not matter? Does the current lender have to agree to the redemption loan? We bought a new car in July and added almost 10k of negative equity from the vehicle we traded in.

[SubPrimeME]

That's what I thought.....

there's another one called fresh start loans, google them- I have no idea if they are any good though, maybe others can chime in as to experience with them.

[coloradomrg]

we were approved by 722... fresh start denied us due to late car payments before the BK

[jencz]

722 redemption and credit unions

Hello all,

I reeived a call from the 722 program saying I was approved for up to $415 a month in payments for up to 60mths, when I asked what amount (total purchase price) I was approved for, the gentleman said he didn't know, US Bank did and they have a dealer for me to work with. Does this sound right? Has anyone else done this before? I owe $33,000 on my car which is worth about $20,000-25,000 (it's a Lexus) and has high lmiles as I drive A LOT for my work.

Also my attorney said because both of my cars (husbands too) are financed at the same credit union we must do both cards under the 722 or none at all. She went on the say that credit unions have special laws that allow them to roll the discharge from one loan unto the other when you go to reaffirm.

Anyone familiar with this?

Wow, the things we learn through this process.....

[StartingOver08]

Hello all,

I reeived a call from the 722 program saying I was approved for up to $415 a month in payments for up to 60mths, when I asked what amount (total purchase price) I was approved for, the gentleman said he didn't know, US Bank did and they have a dealer for me to work with. Does this sound right? Has anyone else done this before? I owe $33,000 on my car which is worth about $20,000-25,000 (it's a Lexus) and has high lmiles as I drive A LOT for my work.

Also my attorney said because both of my cars (husbands too) are financed at the same credit union we must do both cards under the 722 or none at all. She went on the say that credit unions have special laws that allow them to roll the discharge from one loan unto the other when you go to reaffirm.

Anyone familiar with this?

Wow, the things we learn through this process.....

Yes this is called cross collateralization. But, if you want to keep one of the cars with the CU, try to negotiate with the BK dept of the CU to drop the cross collateralization. I did - and my CU dropped it out of the reaffirmation agreement (I also got them to reduce the payment, skip a month etc). So your attorney was referencing the cross collateralization - but the assumption that they will not drop it is an unknown ....each lender/CU is different. See what they will say.

[jencz]

Yes this is called cross collateralization. But, if you want to keep one of the cars with the CU, try to negotiate with the BK dept of the CU to drop the cross collateralization. I did - and my CU dropped it out of the reaffirmation agreement (I also got them to reduce the payment, skip a month etc). So your attorney was referencing the cross collateralization - but the assumption that they will not drop it is an unknown ....each lender/CU is different. See what they will say.

Thank you!! I will definitely take your advice! We really wanted to keep my husband's car. His truck is the one thing we have that isn't upside down and it runs wonderfully!! We had the same type of truck before for almost 9 years and would love to that again with this one.

Thanks again, wish me luck!

[brokenbuthealed]

If you do the 722 redemption will your new loan still be with the credit union? If a different bank is financing the redemption then I wouldn't think cross-collateralization would be an issue because the credit union would be getting paid a lump sum to release the collateral to the new lender.