My question involves an auto loan or repossession in the State of: PA
We leased a truck through Chrysler Financial in March of 2006. After about a year of keeping the payments current, we started to fall behind. We have been late on the payments frequently (probably about 12 times in the past year and a half). Sometimes the payments were only a week or two late, a few times they were 30 days or more late. I was current as of Aug. 1st, but have not yet made august's payment which is now 25 days late.
About a month ago, Chrysler Financial suggested to me that if we were having trouble affording the truck that we should try to take it back to the dealership, turn in the lease early, and try to work out a deal on getting a cheaper, more affordable car. On Friday, we did that. We worked out a deal on a used vehicle with a much lower payment and the dealer agreed to "buy-out" the remainder of the lease. We left the leased truck at the dealer, signed over the title, and signed the paperwork for the new "used" vehicle we purchased. However, we had to get a co-signer for the new one due to our bad credit, and my Mom agreed to co-sign for us. But, she is currently out of state and the dealer had to "overnight" the paperwork for her to sign and then she will overnight it back. Until then, the dealer won't send the payoff to Chrysler.
Today, I get a call from Chrysler demanding that I send August's payment plus late fees (a total of $571) by 6 p.m TODAY or they are going to either repo or charge off the vehicle. I explained the situation...number one, I just don't have that amount of money to send TODAY, and number two...they will be getting a payoff from the dealership (a Chrysler dealership) within a few days. They are refusing to wait.
What I'm wondering is...
Can they reposess the vehicle when it's at the dealership and we've already signed over the title and made arrangements for the payoff?
If they can do this, do you think the repo will affect the loan for the new one which we've already been approved for and are in possession of, but which is not "complete" just yet while waiting for the co-signer to return the paperwork?