[needadvice336]

My question involves an auto loan or repossession in the State of: North Carolina.

So this is the situation. I received a auto loan from a major bank for $29,000
After having car for a few months. I realized that the car had some major accident in its carfax report that i was never aware of. So that is when I decieded i wanted to sell the car since i had the title and no lien was apparently on the car at the time. (this is after about 6months of payment).

I sold the car on ebay for $24,000 due to its car fax report.
I was still making the payments on the loan for the next few months.
But I had a few credit card debt that was charging me 24% interest which was barely paying off the interest. So I used the Auto Loan money to pay off the cc debt. Since the auto loan was at 7% interest.

After about 3 months, Things went downhill due to medical bills and me getting laid off from work due to the medical reasons. Which resulted in 0 income. Now I havent been able to pay the auto loan payment for last 6 months. They had defaulted and charged off the loan.

Now i havent heard much from them but they sold account to collection agency. I have not been served with a judgment yet.

My real questions is What are my options here? Can this result into a criminal matter? Can I still make a payment plan with collection agency? What will happen if they find out car is sold? I am trying my best to come into some resources to pay off loan. But I fear that it might take me a few months. Will I be served with a judgment first or will they try to pull a warrant out? THANK YOU FOR THE HELP

[cyjeff]

The short answer is that you committed fraud.

The bank had a lien on a car which you no longer have possession on. You do not get to choose what to do with the money you realized on the sale of that car... the bank HAD to get their money first.

So, you turned a 30,000 secured debt into a 30,000 unsecured debt. Banks do not like unsecured debts.

Your problems are actually just beginning. When the person that you sold the car to tries to get it titled in their name, they will be denied based upon the bank's lien.

So, you will get sued by the bank for the money. You will get sued by the new owner of the car for the money... and there is a medium chance that the bank will repo the car from the new owner.

You basically spent the money you didn't have twice.

I would call the bank today. You have some really big issues coming at you and you need to take this bull by the horns.

[aaron]

If the title was successfully transferred with no notice of lien to the buyer, I doubt that the bank has any recourse against the buyer, who appears to be a bona fide purchaser for value. If the transfer is denied, that's another story.

[needadvice336]

The buyer of the car has had the car last 6 months. He has my home number and cell number. He hasn't contacted me since the sale. he did call 1 month after sale but that was to ask if there was a 2nd key copy.

At the time i did not realize that it was illegal.
But I still would have payed it off if it wasnt for me being laid off.

Right now I am hoping to try to pay them off in full within 3 months.
I am extremly worried that i will have a warrant out for me.

If there is a warrant out in next 2 months but i pay off by 3rd month.
will the warrant dissapear or will i still have to face charges?

Also I had never registered the car under my name due to the fact it took the dalership 3 months to send me title after sale, They had kept on giving me 45 day dealer tags. Once i got title i found out about the accident in car history.

I sold the car before temp. tags expired, and didnt want to pay $2,000 to register. So i sold car directly from dealer to new owner. Dealer never wrote my name under buyer and left it blank.

[needadvice336]

I would appreciate any advice on this matter.
If it is that serious for a criminal matter, I would be willing to sell my condo
and get whatever equity i have to try to pay them off.

But i'm hoping I can go 3 months, So i can pay them off without selling my home(also home prices are down right now), and i dont want to lose that money.

I have looked allover for Laws in NC for this but cannot find anything.
I need to take care of this, because i am getting panic attacks just by thinking of it, as i have never been in trouble with the law. Will they still come after me even if i pay in full??

[Mr. Knowitall]

You want the future predicted? Call a psychic.

You want to minimize the chance of something bad happening to you? Pay off the loan, ASAP.

[skc0651]

I have a similar experience, though for a much smaller amount. I got a loan to buy a used truck off of eBay for $3900. The the bank financed $3400 and I paid the rest cash. Since I bought from a private party instead of a dealer, I put the truck in my name and received the title. I had the truck for 2 months, and sold it for $4500 to another private party. They had no problem transferring the vehicle to their name much like the buyer of your car.

Due to financial difficulties, I quit paying the loan and defaulted. They charged it off and filed a collection for the amount. That was last October. Nothing has happened since then, and it's another collection to include in my impending Chapter 7.

I'm in California by the way.

Obviously since it's a much smaller amount, my tale may be of little help to you, but I figured I'd share it anyway. It sounded like you needed encouragement. I'd try to settle with the collection agency, they might take less than the original amount, and you might not need to sell your condo. Good luck.