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Unemployed Mother of 3. Just Had My Car Repossessed. What Are My Options? – Anne

I’m a mother of 2 soon to be 3 and been unemployed since last year July. My husband works contract jobs and has been out of contract for 2 months.The car loan was in my name only and it’s the only debt I have. We don’t have another car and are currently stranded because our city barely has a bus service.

I lost my job a year ago and have not managed to get another one yet .My car just got repossessed this weekend for being 3 months behind on payment. I talked to the bank and they said I only have 10 days to pay off the loan which is about 15K or they auction it off. I know they usually auction off the cars for dirt cheap thus leaving me with a huge balance, no car and a WRECKED credit for several years. Is it possible to get new financing to buy back the car before it’s auctioned or what other options do I have now?

Anne

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Unemployed Mother of 3. Just Had My Car Repossessed. What Are My Options? - Anne by

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  • Djangodan Robinson

    I pray your financial woes become financial blessings. Your car may not come back but new doors will open for you

  • Rmartinez

    Anne,
    I’m sorry to hear that you’re having such a difficult time. It sounds like you are very frustrated with your situation. Just know that you are not alone. There are lots of people dealing with financial issues right now. It may be best to just cut your losses and move on. It doesn’t make you a bad person, it’s just a bad economical situation that happened. I hope you focus on moving forward and taking care of your own health. Try not to let your financial problems steal your joy. The material things in life can be replaced somewhere down the line, but the birth of a child is priceless and can’t be replaced with do overs. Best wishes.

  • Msullivan

    Anne,

    I am sorry for your difficulty. Certainly it would great to be able to get enough cash to pay off the $15k and get the car back. It would save you money in the long run plus give you transportation. I imagine your credit is well dinged after this episode so it would not seem likely that you could walk into a bank or credit union and get an auto loan. There are other ways to borrow money, including a number of Web-based “peer to peer” lending sites and you may have a family member or friend able to lend $15k. 

    A bigger question may be can you make the payments if you get a $15k loan? Even a 4% loan for 48 months would cost you around $380 a month. If you couldn’t afford your payments before how will you afford them now? It doesn’t sound as though you are able to earn much at this time and your expenses are about to go up with a third child. You’ll never borrow your way out of financial trouble so if you can’t afford the loan there is little point in pursuing it–you will just default again.A gift would be great, or a loan from someone who can delay getting payments for a while. Otherwise, you may have to let the car go.

    Yes, you will be on the hook for the difference between the loan amount and the sales amount and yes, your credit will take a hit, but finding a solution after a car is repossessed is very difficult. If we had had this discussion sixty days ago there may have been different options.

    When your husband gets regular work you can consider buying a another car, perhaps a used one for less than $15k. Till then you may have to use the bus.

    Sorry.

    • Anne

      Thanks MSullivan for your honest reply. I knew I was between a rock and a hard place and just wanted to make sure I had exhausted all possibilities. It just seems like I’m having the worst few months of my life . Anything that can go wrong has gone wrong and it doesn’t help that even after sending about 100 million resumes I’m still unemployed . It makes me wonder why I ever went to college. I should have just used that money to start a business and probably by now I would have become one of those” self made millionaires”. Anyway I guess I’ll just try and keep my head up and try to stay positive despite all these damn setbacks!! I still have about 7 months before I have my new baby and I guess some walking will do me good- I bet I will be the fittest mother in the block. Again I really appreciate your quick response. Thanks.

      • http://GetOutOfDebt.org Steve Rhode

        Anne,

        If you could afford the car payment and to bring it current then a very fast bankruptcy filing may get your car back. But that doesn’t sound like the current situation.

        Just keep your eyes open for a huge bill due for the car once they auction it off. That might be the better time to file bankruptcy to get a financial fresh start and help you to get back on your feet again.

        Steve