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Old 07-27-2016, 11:01 AM
 
Location: El paso,tx
1,105 posts, read 417,685 times
Reputation: 1696

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Quote:
Originally Posted by chet everett View Post
I am going to suggest you read this article -- What You Need To Know About Zero-Percent Car Loans | Edmunds.com Though the focus is on "what FICO score is needed to get a 0% car loan", the fact is tht the SYSTEMS that car dealers are tied into through their relationships with the factory and third party lenders enables them to get a "real time" update on your credit score. That means that the lending systems will know that you have applied for and been approved for the mortgage and realistically any decisions made by those computerized systems will reflect that information.

Maybe a decade or so ago there were still car dealers that would fax a loan application to some third party and things might not show up so quickly but that era has passed.

That said, if you can qualify for a nice inexpensive car it really won't matter if you do the loan the same day as you close on your new house or days / weeks later. So I guess that might be some good news...

BTW, I do recommend that folks who are shopping for a car give serious consideration to the option of financing it through a credit union. 6 reasons to get a credit union car loan The structure of most credit unions is such that they have lower costs than other kinds of lenders and generally are more flexible when it comes to lenghtier loans. Using them for a loan may make it possible to get rebates / cash incentives from the dealer or manufacturer. New Car Incentives and Rebates
Except that if you have any other credit cards or loans from a credit union and default on one of those, they can repo your car, even if you've never had a late pmt. It's called "right to offset" and in all credit union loan paperwork. This is especially important if you are married and divirce, and are on a loan with your ex, and they default, even if judge awarded them that debt. Or if you cosign with a child and they default.
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Old 07-27-2016, 11:16 AM
 
Location: Hickory, NC
1,109 posts, read 847,804 times
Reputation: 1500
Yeah, we have buyers sign a Undisclosed Debt document at closing, stating that they have not applied for any credit that isn't disclosed on the form. If they answer that they have, then we have to IMMEDIATLEY stop the closing and go back to the underwriter to make sure their ratios aren't outside of guidelines. Better to not lie on that form and just wait until you sign all of your documents, then you're free to do whatever. We're talking about a few days here, so it shouldn't be a huge deal. You'd hate to lie on that form, your file get audited, and then get nailed to the wall once they see that you acquired a car loan a few days before closing and didn't tell anyone.
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Old 07-27-2016, 11:20 AM
 
Location: Hickory, NC
1,109 posts, read 847,804 times
Reputation: 1500
Quote:
Originally Posted by Spottednikes View Post
Except that if you have any other credit cards or loans from a credit union and default on one of those, they can repo your car, even if you've never had a late pmt. It's called "right to offset" and in all credit union loan paperwork. This is especially important if you are married and divirce, and are on a loan with your ex, and they default, even if judge awarded them that debt. Or if you cosign with a child and they default.

This is true. Most people don't discover this until they have two loans at a credit union and the non-car loan goes bad. I've had people (for whatever reason) default on an unsecured loan, but keep paying on the car. So we don't repo the car, but we don't give them their title when it's paid off either. We retained the title until the unsecured note was paid as well, due to the offset clause in the paperwork.

I don't ever remember repossessing a car due to default on an unsecured loan though. Usually if people were that hard up, we would rewrite the car loan to payoff the unsecured loan and extend the term to keep the payment the same.
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Old 07-27-2016, 12:02 PM
 
27,907 posts, read 65,323,142 times
Reputation: 17352
What you saying is not unique to Credit Unions. Any lender that also extends to clients any other credit, or frankly even has any other accounts for deposit associated with your banking, can assert a right to offset by seizing not just collateral but other assets you have with them.

This is a pretty basic rule associated with all kinds of financial service firms, if you have margin accounts with the same broker that you also have a money market account with and you fail to answer their request to provide liquidity to margin account that have gone negative the broker will apply the funds from your money market account.

The fact is that Credit Unions have less "desire" to repossess your car than other lenders. They are not run for a profit-making reason and the folks making the decisions about which loans are so far in arrears that action needs to be taken are motivated to ensure that you still have your vehicle to get to your job so there is a greater likelihood that you'll catch up.

What sort of fear mongering are you up to? Do you work for a finance company? Have you had a car repossessed?
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Old 07-27-2016, 10:23 PM
 
Location: MID ATLANTIC
7,384 posts, read 16,790,620 times
Reputation: 7657
Quote:
Originally Posted by chet everett View Post
What you saying is not unique to Credit Unions. Any lender that also extends to clients any other credit, or frankly even has any other accounts for deposit associated with your banking, can assert a right to offset by seizing not just collateral but other assets you have with them.

This is a pretty basic rule associated with all kinds of financial service firms, if you have margin accounts with the same broker that you also have a money market account with and you fail to answer their request to provide liquidity to margin account that have gone negative the broker will apply the funds from your money market account.

The fact is that Credit Unions have less "desire" to repossess your car than other lenders. They are not run for a profit-making reason and the folks making the decisions about which loans are so far in arrears that action needs to be taken are motivated to ensure that you still have your vehicle to get to your job so there is a greater likelihood that you'll catch up.

What sort of fear mongering are you up to? Do you work for a finance company? Have you had a car repossessed?
Thank you, the poster obviously doesn't understand non-profit, no one on the Board of Directors is paid, and as a LO, I likely make far less than my counterparts. And that's okay, I am here by choice and could not be happier! But, we do not figure how to take someone's car to meet the deficit of a default. Phfffft.
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Old 07-29-2016, 05:54 PM
 
5,096 posts, read 2,573,264 times
Reputation: 6961
Having just signed the credit attestation for our mortgage I did notice that there was a statement there saying we agreed not to open any new credit lines for 30 days after closing.

Not that I have any idea how they would go about enforcing that.
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Old 07-30-2016, 08:14 AM
 
Location: MID ATLANTIC
7,384 posts, read 16,790,620 times
Reputation: 7657
Quote:
Originally Posted by notnamed View Post
Having just signed the credit attestation for our mortgage I did notice that there was a statement there saying we agreed not to open any new credit lines for 30 days after closing.

Not that I have any idea how they would go about enforcing that.
Was this in your closing docs? Who closed your loan? (Title company or an attorney). Did you go to a broker? Bank? It sounds like whoever it was is making double certain your loan can be sold. I do not know of any credit instrument that locks a buyer in for the future on consumer debt. Secured by the subject, sure. Many bond (first time homebuyer programs) have restrictions, but I don't think what you signed is enforceable. If you need to buy a car, call an attorney first.
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Old 07-30-2016, 04:17 PM
 
5,096 posts, read 2,573,264 times
Reputation: 6961
Title company and got the mortgage through a wholesale broker who got us hooked up with the mortgage lender.

Having reread it, it's a statement saying that you do not plan to get new credit for next 30 days, otherwise explain.

So would think certainly not enforceable. Unless, maybe you wrote a post on a forum stating that you were going to do that ahead of time heh.
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Old 07-30-2016, 05:00 PM
 
Location: Durham NC
1,109 posts, read 1,088,478 times
Reputation: 852
Quote:
Originally Posted by chet everett View Post
I am going to suggest you read this article -- What You Need To Know About Zero-Percent Car Loans | Edmunds.com Though the focus is on "what FICO score is needed to get a 0% car loan", the fact is tht the SYSTEMS that car dealers are tied into through their relationships with the factory and third party lenders enables them to get a "real time" update on your credit score. That means that the lending systems will know that you have applied for and been approved for the mortgage and realistically any decisions made by those computerized systems will reflect that information.

Maybe a decade or so ago there were still car dealers that would fax a loan application to some third party and things might not show up so quickly but that era has passed.

That said, if you can qualify for a nice inexpensive car it really won't matter if you do the loan the same day as you close on your new house or days / weeks later. So I guess that might be some good news...

BTW, I do recommend that folks who are shopping for a car give serious consideration to the option of financing it through a credit union. 6 reasons to get a credit union car loan The structure of most credit unions is such that they have lower costs than other kinds of lenders and generally are more flexible when it comes to lenghtier loans. Using them for a loan may make it possible to get rebates / cash incentives from the dealer or manufacturer. New Car Incentives and Rebates
I did two car loans with Navy Federal but on my last car Toyota offered 0 for 60 months so I took that. NFCU is easy to deal with. My car broke down on the Jersey T-Pike and before the car was on the hook I was approved for a car I bought that day.
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Old 07-31-2016, 06:58 AM
 
Location: MID ATLANTIC
7,384 posts, read 16,790,620 times
Reputation: 7657
Quote:
Originally Posted by notnamed View Post
Title company and got the mortgage through a wholesale broker who got us hooked up with the mortgage lender.

Having reread it, it's a statement saying that you do not plan to get new credit for next 30 days, otherwise explain.

So would think certainly not enforceable. Unless, maybe you wrote a post on a forum stating that you were going to do that ahead of time heh.
Lol......but where there's no name, there's no problem.
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