Voluntarily submitted vehicle/sold for below value

[carolinagirl]

This is our situation-- My husband's grandmother signed for him to get a vehicle. The loan was solely in her name, with no money, etc. put down to get the vehicle. We were responsible for the payments on the vehicle. When my husband lost his business and we voluntarily surrendered the vehicle, it was sold for approximately $12,000 less than the payoff amount. Wachovia financed the vehicle and we received documentation stating we were liable for the unpaid balance. My husband talked to a gentleman at Wachovia and explained the situation to him, the man said he would call us back in approx. 3 mos. to try and work out an arrangement to settle the balance. We had sent some payments on the outstanding balance. Now, Wachovia has charged off the account and a collection agency is calling my husband's grandmother and my husband. The collection agency is trying to collect $12,000. She said they will settle for $5800 cash or we can send like $1300 and set up a pymt plan to collect the difference. She further stated that if we do not settle this immediately they will be "forced to take further action" on the grounds of breach of contract. What can they do? Can they take anything from his grandmother to try and sell to pay off the loan, as this is what reps from Wachovia told her they could do? We have been told in the past that since the vehicle was a non-deedable asset that they can only place a judgment against her for the unpaid balance? Is this true?

 

[Duranie]

You still owe the balance. He should not have sold the car for less than what he owed and since he did you still owe it. This happens all the time. Most people are upside down on their car loans but this does not erase the negative equity once it is sold. Seems to me the offer the collection company is making is reasonable, he is free to counter-offer. They can also place a judgement against her and possible lace a levy on her bank account or garnishment.

 

[FlaRiptide]

If you decide to work with the collection agency I would advise getting in writing from Wachovia that they have relinquished your debt to the agency. Make certain your debt is dissolved with Wachovia prior to paying the collection agency.