Overhaulin'

Help! Big trouble n Lil' China!!!! upside down in car loan?

My mom is moving out of state to help my grandparents out. She has a cavalier worth...idk...i wouldn't pay more than $900 bucks for it. (its falling apart!!!!) She rolled over an upside down loan on it and it came out to like $17000. (yeah tell me about it....) she still owes like $9000 on it. My bro & i are try'n to figure out what to do to get her out. My bro is a co-signer for her & i'm financing my own truck (not upside down in). I suggested maybe we trade-in both cars/truck get a car/suv/truck that holds its value (honda, toyota) and bite the bullet with that 1 loan. I figured we still be upside down but we would have a better chance at bring'n what is owed down to the value at lot faster than just paying off her vehicle. And we would only have 1 car pymnt and car ins. pymnt. Any suggestions? ...btw she doesn't have GAP insurance!!! :(

Public Comments

1. slow down! take about 3 days and land on your feet...then do what is best for you! all else will fall into place...
2. The first thing you should do is try to take a breath and calm down. You need to have a clear head when dealing with finances. You should call a credit counselor. he can either point you in a good direction or even offer you a combination loan at a lower interest rate. You defaintly do not want to trade both vehicles in because you will still be upside down. If you do end up rolling over the two vehicles, try to sell your truck to a private party, you will get more to pay off the loan. But you are right, honda and toyota will hold the value the best. The last option and not a good one would be to file chapter 7 bankruptcy. It would pay off the loan and then you could go get a cheap honda for her for like 1500 or 2000. The downside is that your brother would be involoved in it too. Defiantly call the counsler though they will have more ideas and better understanding of the law in your area. btw if it has a lot of problems you might be able to get it recovered in a lemon law type thing. If you have replaced someting on it more than 3 times it could qualify as a lemon and they will give you your money back