This is exactly what I've been dealing with over the last 9 months. I did speak with two different attorneys and they both said that there was very little you could do. In all likelihood they will come after you for the difference. The only suggestion one of the attorney's had for me was to trade it in. In theory I could have done a trade in on my 2007 Subaru Legacy for a significantly less expensive vehicle (perhaps something in the $6-8K range) I would have probably gotten $10-12K for my Subaru, which I owed $19K on at the time. In the end I wold have probably come out of it owing $12-15K on a car that was worth $6-8K but because it was a "new" loan it would have been spread out over a new 4 year term, thereby reducing my monthly payment.
If all that didn't make sense, that's because it's stupid and you're still screwed. In my case rather than owing $410 a month on a car worth $17K (if I sold it on my own) but that I owed $19K on- I'd have come out of it paying $300 a month on a car worth 6-8K that I owed 12-15K on AND having to cover all the repair/maintenance costs on an older/less reliable car out of pocket as well.
And you can't even sell it on your own for whatever you can get for it- unless you have the cash of hand to pay the difference, because you can't get the title from the bank until the loan's paid off and you can't sell the car without the title. Grrr.
In the end I "got lucky" by getting into a very serious accident in July. I was hit by two semi trucks in the middle of a brush fire. I am very fortunate to be alive. The accident was ruled not my fault AND I had GAP coverage on the car loan, so when they determined that the car was indeed totaled, the entire loan was paid off.
Kind of a sad state of affairs in this country when getting into a serious accident in the easy way out. >:(
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Date: 2010-09-10 01:41 am (UTC)If all that didn't make sense, that's because it's stupid and you're still screwed. In my case rather than owing $410 a month on a car worth $17K (if I sold it on my own) but that I owed $19K on- I'd have come out of it paying $300 a month on a car worth 6-8K that I owed 12-15K on AND having to cover all the repair/maintenance costs on an older/less reliable car out of pocket as well.
And you can't even sell it on your own for whatever you can get for it- unless you have the cash of hand to pay the difference, because you can't get the title from the bank until the loan's paid off and you can't sell the car without the title. Grrr.
In the end I "got lucky" by getting into a very serious accident in July. I was hit by two semi trucks in the middle of a brush fire. I am very fortunate to be alive. The accident was ruled not my fault AND I had GAP coverage on the car loan, so when they determined that the car was indeed totaled, the entire loan was paid off.
Kind of a sad state of affairs in this country when getting into a serious accident in the easy way out. >:(