Title Loan

[dkblakemore]

Hello. I got a title loan over 18 months ago and have been paying monthly. I got laid off last year and now it is very difficult to make the monthly payments, much less to pay the loan off. What recourse do I have?

 

[army judge]

Hello. I got a title loan over 18 months ago and have been paying monthly. I got laid off last year and now it is very difficult to make the monthly payments, much less to pay the loan off. What recourse do I have?

You should read the contract you signed.
A title loan is secured by the car you own.
Your car is collateral for the loan money you received.
If you fail to honor the contract, your car will eventually be repossessed.
You can see if the lender would be willing to modify the loan, that could mean lowering the payments for 90-120 days, until you find new emplpyment.
You could even ask a payment waiver for 90-120 days, and then resume payments when you are reemployed.
You should immediately ask the lender what they can do to work with you.
As far as legal options, you have none.
Even a bankruptcy won't allow you forget or ignore the payments.
Although a bankruptcy filing could stall you paying the note.
That would make no financial sense, however, as a BK filing and lawyer fees would likely exceed the monthly payments.
A title loan is just like any other secured loan, usually furniture, you pay or they take your junk away.
Plus, you'll still owe the remaining amount unpaid after the dust settles.

 

[dkblakemore]

thanks for all of your help. have a great day

 

[txls]

Communicate with them and hopefully they will be willing to work with you. Just don't ignore them and try to avoid them. One other option is to try to find a cash buyer for the car, assuming the car is worth more than the balance of the loan. You can then bring the buyer to the loan office, pay the balance and get the title to sign over to the new buyer.