722 redemption

[deadmonetree]

did some reADING ON THIS REDEMPTION THING AND IT SOUND AWESOME!!! WE BOUGHT A VEHICLE ABOUT 5 MONTHS AGO AND WE LOVE IT. WE ARE THINKING THAT WE WANT TO KEEP IT IS THERE A REDEMPTION FOR PEOPLE UNDER 3 YEARS OR WILL BANK CHANGE YOUR LOAN AMMOUNT? IT IS THROUGH PENTAGON FEDERAL AND INT RATE IS 4.5 SO GOING THE 722 ROUTE WOULD CHANGE PAYMENT BY 50 BUCKS BUT IT WOULD BE WORTH KELLY BLUE BOOK VALUE. ANY THOUGHTS?

[JRScott]

During the course of your bk, the lien holder will send a reaffirmation agreement for the vehicle in question. They may or may not seek to change those terms from the original agreement.

A 722 is generally when you surrender one car to get another car despite being in bk. Usually the car acquired is cheaper than the one surrendered to more easily fit within your budget.

[okiemom2008]

did some reADING ON THIS REDEMPTION THING AND IT SOUND AWESOME!!! WE BOUGHT A VEHICLE ABOUT 5 MONTHS AGO AND WE LOVE IT. WE ARE THINKING THAT WE WANT TO KEEP IT IS THERE A REDEMPTION FOR PEOPLE UNDER 3 YEARS OR WILL BANK CHANGE YOUR LOAN AMMOUNT? IT IS THROUGH PENTAGON FEDERAL AND INT RATE IS 4.5 SO GOING THE 722 ROUTE WOULD CHANGE PAYMENT BY 50 BUCKS BUT IT WOULD BE WORTH KELLY BLUE BOOK VALUE. ANY THOUGHTS?

When we met with our lawyer this is what he said about the 722 redemption.

Basicall if you are upside down on your loan you can try to get the loan reduced to the kbb (kbb.com) value. But you usually have to pay outrageous interest (24% for us) but you can atleast keep your vehicle.

For us,we decided against it and just going to give up the car. But alot of people do the 722 and it works for them

Good Luck in whatever you decide

[deadmonetree]

okay i did some more checking and i guess some companys will let you do a redemption on a car under 2 years. does anyone know of this first knowledge?? if you did who did you use and what was the interest rate?

[deadmonetree]

anyone? i found bk autos is 21% and every 3 months it drops a little doesnt say if it can be 08 model has anyone done this??

[scla]

How 722 Redemptions Works

722 Redemption is used mainly in Chapter 7 bankruptcy for people whose vehicle is worth substantially less then the outstanding loan on the car. 722 redemption requires that you be able to obtain a loan for the market value of the vehicle. This loan is then used to pay off your current lender in a lump sump payment. The lender must then release the lien against your vehicle. Generally 722 redemption loans do have a higher interest rate because of the risk involved for the lender. If you want more information on you can find it here [removed URL]