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  1. #1
    Join Date
    Nov 2018
    Posts
    2

    Default What Happens if You Drop Your Car Off in a Voluntary Repossession

    My question involves a consumer law issue in the State of: New Mexico

    I just move to Albuquerque from ohio with the move i can no longer afford my car.
    What happens if i voluntary give my car back to Wells Fargo Dealer services?
    Will they have me go base off the repo rule in ohio because the car still registers in ohio or would they go off New Mexico rules cause this where am turning the car in?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,163

    Default Re: Voluntary Repossession

    What rules are you taking about?

  3. #3
    Join Date
    Jul 2018
    Posts
    1,061

    Default Re: Voluntary Repossession

    Quote Quoting Ijnewport17
    View Post
    What happens if i voluntary give my car back to Wells Fargo Dealer services?
    This is an awfully vague question, but it is safe to assume that some or all of the following will happen:

    1. Assuming that, in addition to surrendering the car, you also stop making payments, you will suffer a hit on your credit reports.
    2. The lender will auction your car off to cover some of the unpaid balance of your loan.
    3. Assuming the sale of your car doesn't generate enough money to pay off the loan and the costs associated with the whole process, the lender will hound you to pay the unpaid balance.
    4. You'll get sue and lose and, as a result, get a judgment against you.
    5. Your wages and/or bank account(s) will be garnished/levied for as long as judgments are enforceable (apparently 14 years in New Mexico).

    Quote Quoting Ijnewport17
    View Post
    Will they have me go base off the repo rule in ohio because the car still registers in ohio or would they go off New Mexico rules cause this where am turning the car in?
    What rule(s) are you talking about, and what do you think are the relevant differences between "the repo rule in [O]hio" and the "New Mexico rules"?

  4. #4
    Join Date
    Jan 2019
    Posts
    1

    Default Re: Voluntary Repossession

    Your credit will suffer any time you default on a loan. Credit scores try to determine whether or not you’ll stop making payments, and they base the prediction primarily on whether or not you’ve done so in the past. But nothing is permanent: Defaults typically fall off your credit reports after seven years, and your scores should start to improve within a few years of repossession. You can even rebuild your credit after repossession by getting new loans and paying them off over subsequent years.

    A voluntary repossession is essentially the same thing as an involuntary one: a defaulted loan. Either one will drag down your credit scores. But there is a slight difference: A voluntary surrender shows up differently on your credit reports, and that might matter to somebody who reads through your report manually.

    For example, a loan officer at a small credit union might read through each item on your report. Computerized scoring models, on the other hand, probably won’t treat voluntary surrenders any differently.

    If anybody tells you that a voluntary repossession won’t hurt your credit, evaluate what biases that person has. Will they benefit financially (by selling you a product or service, for example) if you decide to take your car back? If so, get advice elsewhere.

    Quote Quoting bougti
    View Post
    Your credit will suffer any time you default on a loan. Credit scores try to determine whether or not you’ll stop making payments, and they base the prediction primarily on whether or not you’ve done so in the past. But nothing is permanent: Defaults typically fall off your credit reports after seven years, and your scores should start to improve within a few years of repossession. You can even rebuild your credit after repossession by getting new loans and paying them off over subsequent years.

    A voluntary repossession is essentially the same thing as an involuntary one: a defaulted loan. Either one will drag down your credit scores. But there is a slight difference: A voluntary surrender shows up differently on your credit reports, and that might matter to somebody who reads through your report manually.

    For example, a loan officer at a small credit union might read through each item on your report. Computerized scoring models, on the other hand, probably won’t treat voluntary surrenders any differently.

    If anybody tells you that a voluntary repossession won’t hurt your credit, evaluate what biases that person has. Will they benefit financially (by selling you a product or service, for example) if you decide to take your car back? If so, get advice elsewhere.
    If anybody tells you that a voluntary repossession won’t hurt your credit, evaluate what biases that person has. Will they benefit financially (by selling you a product or service, for example) if you decide to take your car back? If so, get advice elsewhere.


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