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chargegoffs?

post #1 of 18
Thread Starter 
Has anyone on here had to do a voluntary surrender on their car, and had it shown up as a chargeoff on their credit report? I had no choice but to do this on my Eclipse, because they payments were killing us. I ended up getting a 2004 Toyota Matrix, which lowered my payments to well over $100, plus the drop in my insurance helped me. I know that they will sell the eclipse off at an auction, and it sounds like to me that my credit union will be working with us, so it won't show as a voluntary repo, that they will just work out some payment arrangement with us. I am not by any means proud to have done this, but at this time it was our only choice. I've also started cooking @ home for dinners and we dont get food every singe night anymore, either, and we take our lunches to work. I have also slashed our satellite bill in half from $80+ a month to $40 a month, by cutting out the premium channels. I also am looking for a higher paying job.
post #2 of 18
If the car was taken back by the bank ( a repo ) it will be a chargeoff, even if the credit union works something out for you on the payments. The credit agencies use chargeoff to describe any debt that goes unpaid. If they sell the car at an auction and the bank gets their money, then it could show as something else but until the debt is paid you will see 'chargeoff' on your report.
post #3 of 18
Thread Starter 
daniella,
I did a voluntary surrender, which I am assuming is better than an involuntary surrender. Do you know how long it takes before they sell the car? You work at a bank, don't you?
post #4 of 18
I no longer work at a bank. I did though for 4 years, so I'm a little knowledgeable.

I don't think there is an exact time frame. It would be difficult to say when the car would sell, but I think most auctions take place anywhere from monthly to quarterly.

Also, if its a voluntary surrender and there is still a balance due, I believe it will still stand as a chargeoff. You may want to check w/ the bank directly though. From what I remember my bank that I worked for doing, it would be a chargeoff whether its voluntary or involuntary.
post #5 of 18
Hey we have a Matrix too, an '03, and we love it!
post #6 of 18
I work for a finance company and even a volontary surrender shows up as a repo, on a credit report. I don't know how often auto auctions are held, in your area and the car may not even be auctioned off, there.

Once the lender has received the money from the auction, they will bill you for the shortage, plus the repo fees (usually $250-$350). Unfortunately, repos and chargeoffs stay on your credit report, for at least 7 years.

Sometimes, the lender will discount what's owed. My ex has vol. surr, before we got married and settled for paying less than was owed.
post #7 of 18
Thread Starter 
big Kat,
What color is yours? Mine's the cosmic blue.

I am just wondering how chargeoffs affect student financial aid from the gov't?
post #8 of 18
Tigger, is the Toyota Matrix a regular car, or one of those cars that run on both gas and electricity?
post #9 of 18
Thread Starter 
hopehacker,
It's gas only.
post #10 of 18
I've never heard a situation where a car was sold at auction for anymore then pennies on the dollar (of it's worth). Years ago I had a $15,000 car, owed 10,000 and they sold it at auction for less then $2000. They still hold you responsible for the rest and try to get you to pay. And it does go against your credit. Even though they'll tell you a voluntary isn't as bad as a repo it is pretty much the same.
post #11 of 18
Thread Starter 
Did you end up paying for it? How much did they settle with you, and how long did it take u to pay it off? So if I read it right, you were upside down by $10,000??
post #12 of 18
That's usually how it works Tigger. They sell off at the auction, take the highest bid, and the original owner is billed the remainder plus the auction cost, holding fees etc...
post #13 of 18
Quote:
Originally posted by Tigger
I am not by any means proud to have done this, but at this time it was our only choice. I've also started cooking @ home for dinners and we dont get food every singe night anymore, either, and we take our lunches to work. I have also slashed our satellite bill in half from $80+ a month to $40 a month, by cutting out the premium channels. I also am looking for a higher paying job. [/b]
Tigger
1st thing here - I applaud you for having the sense to do what you have done in respect of the car - but as I know nothing on US law and how things work out there - I am leaving it there unless it gets mentioned in the text of this email.
Debt is a very cruel thing and I assume from your posting that is exactly what you have and are trying to get out of it - however, if my comments are not applicable- please ignore. I have slept very little and its just gone 6am here in the UK. Had a massive amount on my mind.
I was in a bad position some years ago - to an extent where I honestly thought that we may end up with the house repossessed. We were fine until we had Christopher. We decided that the first year Carol would not work to dedicate her time to our son. We saved for that time, however, no one can tell you how much a baby costs and the savings were gone in months flat.
Carol was suffering from Post natal and had little interest in anything and I was working late to try and get cash in. The outgoings became more than the incomings and it was crippling us. We borrowed from one bill to put on another and vice versa. Basically- we were crippled although will NEVER tell our son this. We wanted him to have everything.
So - we took the bull by the horns.
We: - destroyed every credit card we had and wrote to each of the companies involved to state what was happening.
We: - contacted the bank and we froze the overdraft and agreed that we would start paying this back very slowly.
We: - quit the chinese, pizza and indian food we were having most nights.
We agreed new terms with teh loans and bank.
.. then got rid of the clapped out car we had - made nothing on it - however - we saved on petrol every week, insurance, tax etc etc etc.
I started using the public transport.
I was still working a lot, but pulled the brakes on this - I was suffering severe exhaustion, was coming in, having a coffee, saying goodnight to our son and going to bed myself- just to get up early and do it all again now. I came home and started to help with Chris, moreso, I recognised Carol had post natal depression and got her to admit it and saught advice. I spent a lot more time with her.
I stopped having chips etc at work daily - made a butty and took it with me. That saved nearly £8.00 per week.
We - and ashamed to say this, even bought "cheaper" brands - so we would eat them. We never scrimped a cent on Chris. Meals were okay for us - we managed.
Then came the possiblity of working abroad for me - we decided to go for it and we sold the house to get where we are now.
We then paid every single person off, parents, banks etc. We now have a larger place and are renting it. The job in Cnada fell through last year.
We managed to put money away as we owed no one at all. We bought a newer car - about 15 years newer and stunning.
We have so much now (not money - we live to our budget) and are lives are richer than ever. The job mayy not have panned out - we have set our wheels in motion for another in canada next year.
The relationship between my wife and son and I is concrete and water tight. I am now able to assist people and advise if heavily in debt where to go, what to write and how to draw up a 5 year plan.
I ended up being two years ahead of schedule and now happy as a pig in muck.
I wish you every success and if I can help at all -let me give you a 5 year plan and bet you beat it financially.
Sorry its a ramble - i am far from perfect, I have struggled and wanted to show that there is light at the end of it all. The most important thing is you have your other half - that is worth more than any amount of $$$$ in the world. I have a pc system that builds resumes and concentrates on you - would love to help you with that and get the job you deserve with more $$$
well done again - I admire and commend you for what you have done.
Kev
post #14 of 18
Quote:
Originally posted by Tigger
big Kat,
What color is yours? Mine's the cosmic blue.

I am just wondering how chargeoffs affect student financial aid from the gov't?

If you are getting a Federal Stafford loan your credit plays no part of it. it's when you go for the Private student loans that it will be against you. I am currently exploring all the federal loans and such myself, and was told by numerous companies, Counslers and ect. that credit plays no part in the Federal loans.
post #15 of 18
Quote:
Originally posted by Tigger
big Kat,
What color is yours? Mine's the cosmic blue.
Ours is silver. We seriously get so much use out of the hatchback it's the perfect car for us. We have those back seats up and down every other day to fit our dog or furniture or whatever in back. Love it!
post #16 of 18
Thread Starter 
kev,
Thank you
Why be ashamed of eating the generic brands? I buy generic, and it tastes the same. My goal is to get a higher paying job, and to be able to not worry about the bills as much. I think starting next Wednesday (when my hubby gets paid), I will start to take $50 from our checking account, and put it into savings, and NOT touch it! I know I can do it -- We have done it before when we were both working @ Motorola. Heck, at one time, I was forcing us to put $500 every paycheck. So, $50 will be my starting point, and work from there.
post #17 of 18
You might want to check out this website for living on a budget:
www.stretcher.com
post #18 of 18
Quote:
Originally posted by Tigger
Did you end up paying for it? How much did they settle with you, and how long did it take u to pay it off? So if I read it right, you were upside down by $10,000??
I still owed about $10,000 on the car. They sold it for less then $2000 (can't remember exactly but it was around $1800). So after they added in all their fees etc. we ended up the same debt we started with and a huge black mark on our credit. The bank wouldn't take any less then $8000 in the end. My credit still sucks because of it. It's very frustrating. Especially when the bank kept trying to tell us it was better then a repo. It isn't.
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