Okay. Here's the sit. I had a Toyota repo'ed by Toyota Motor Credit in September 2004. This was a terrible loan with a balloon payment at the end. The car's original cost was around 14K. I paid car payments of about 400 (actually it was like 403 or 404) for 4 years. Then the balloon payment was due. When I got the loan, they said "of course it will be easy to re-fi when the time comes". Shortly before the note expires the car's engine explodes for good. So I have a car I can't drive that needs around $3,000 in repairs and, surprise, surprise, Toyota will not re-fi the balloon payment. I was willing to pay and try to figure out how to fix the car (I had a kind mechanic who was willing to work out payments with me). Ultimately, after a lot of back and forth I surrender the car to Toyota. They sell the car at auction and get around $5,800. I've made around $19,200 in payments and they've gotten another $5,800. But, yep, they still want the $9,000 balloon payment plus interest which brings it to more like $9,500. So, at the time I pretty much tell them to go pound sand. I don't have $9,500. In my humble opinion, they got 25K for a 14K car, so they aren't getting anything more. Well, now, it's 3 years and some change later. I want to get a mortgage. My credit scores aren't entirely sucky anymore, so I'm eligible for a FHA mortgage with a decent rate. Unfortunately, this damn repo is on my credit reports. My mortgage broker says get rid of it and he'll get me pre-approved. His suggestion is try and make a deal with Toyota. That's where it gets hairy. The SOL in PA is 4 years which means I'm within less than a year of them not being able to sue me for this. Or at least I'd have an affirmative defense against it. I'm afraid if I offer to settle I'll either (a) re-awake their interest in getting this $$$ out of me or (b) re-start the clock. Consequently, my question is: How do I play "Let's Make a Deal" with Toyota and get them off my credit report (or settled, the mortgage broker doesn't care if it comes off as long as it's settled) without negative repercussions? Any thoughts?? Anyone??? Anyone??? Bueller??? Thanks for any help.
Thanks, E. I recently found my title to the vehicle with a notation "lien released" and a signature from Toyota Motor Credit. For some reason I was sent this original title in December 2006. I think I'm going to use it as ammunition to get the CRA to remove. The argument being, "if I have a title showing Toyota as the lien holder on that title it says "lien released" with a signature from Toyota representative, why are they claiming that I owe them anything?"
Yes. It was repo'ed in September 2004. That's why it was so strange that out of the blue, 2 years later I got the title in the mail. The title does show first lien released (from Toyota) and no second lien or anything. Hmmm, maybe I'm do a Carfax and find out where my car is (in general terms, of course).
