Negative Equity?
Q. My husbands truck has like $8K of negative equity. It is worth about $11K and we owe like $19K. We never drive the thing because we carpool everyday becuase we certainly don't need it... What is the best thing I can do with this silly truck?
Asked by Jax - Tue May 29 16:41:35 2007 - - 3 Answers - 0 Comments

A. Keep making payments unless you want to eat the $8k. I'd just hold on to it. Dump it once it's paid off.
Answered by Ronin - Tue May 29 16:46:17 2007

How much negative equity can you roll into a new car lease?
Q. I have a car that I'm financing and it's falling apart. I have about $4000 to $6000 in negative equity with my trade and I'm thinking about a lease option with Honda. Does anyone know how much negative equity can be rolled into a lease with Honda and what the credit requirements are for Honda leases?
Asked by tim - Wed Apr 8 11:59:41 2009 - - 3 Answers - 0 Comments

A. That is never a good diea. I've seen people go in owing more than that, and they always end up screwed. I'd find some other way if at all possible.
Answered by nite_angelica - Wed Apr 8 12:03:59 2009

What is my best option with negative equity in a truck?
Q. I have a truck that has negative equity from a previous car. The truck isn't working for me and I owe more on it than I can sell for. What is my best option in getting into something else?
Asked by chad c - Fri Aug 29 23:26:54 2008 - - 3 Answers - 0 Comments

A. My first recommendation is to do your best to live with it; unfortunately, you are going to loose out if you try to trade it in on something else unless you can trade down. If you absolutely HAVE to get rid of it, try to trade down as I mentioned before, or try to sell it on your own. You can usually get more for a vehicle it you sell it outright as oppose to trading it in at a dealership. Good luck!
Answered by Connie W - Fri Aug 29 23:33:59 2008

Can i trade in a car with negative equity?
Q. I want to trade in my 2007 cobalt on a 2000 civic. The cobalt we bought for 16,000 so i have negative equity since it is only worth about 11,000. The civic i want to trade it in on is 13,000. Am i able to do this even though i have negative equity? Also would the payment go down since the civic cost less? I have about $5,000 i believe in negative equity. So would the new car loan be for like $7,000? cobalt-11,000 civic-13,000 left- 2,000 and negative 5,000 would it then be 7,000? Im sorry if im confusing im just trying not to confuse myself. I want to trade in the car because i like it, but im not in love with the car. I would prefer a standard. My husband stole my lancer and claimed that as his so i have the cobalt. I've always wanted a… [cont.]
Asked by Nicole B - Mon Sep 3 09:47:29 2007 - - 9 Answers - 0 Comments

A. the old balance,minus trade in,will convey to new loan...
Answered by $andman - Mon Sep 3 09:53:45 2007

What is the best advice for someone that has a $10,000 negative equity in a car loan?
Q. I purchased a 2005 Nissan Altima , with no money down and received a $1850 cheque back from the dealership . Now I am looking to trade my Altima in but have so much negative equity in my present car loan . Is there any logical advice for me to break even on my loan .
Asked by KG - Sun Feb 3 19:41:18 2008 - - 10 Answers - 0 Comments

A. Don't take out such a crazy loan next time... Keep driving the car that you have and stop wasting your money.
Answered by FTG! - Sun Feb 3 19:55:16 2008

How can I have negative equity on a car lease if I've made all the payments?
Q. I tried to turn in a leased vehicle early and all the payments had been made, save 2, which I was willing to make at turn-in. I did purchase a new vehicle (cash) at the same time and was charged negative equity on my returning lease - over $1,000 in negative equity. My remaining payments totaled only $496.25 on the lease I turned in. Did I get screwed on this deal?
Asked by A Tea Lady - Sat Aug 22 14:09:41 2009 - - 3 Answers - 0 Comments

A. the car devalued faster than was originally quoted in the lease or your mileage was substantially different than what was projected when the lease was signed. and yes, you got hosed the second you leased the car, instead of buying.
Answered by overnightdeejay - Sat Aug 22 14:52:41 2009

If I have negative equity on a car and I have the financer repo it, will they come after the extra I owe?
Q. I want to give back my car to Toyota Financial cause the payments are to much. I have negative equity on the car of about $15K. Will they come after me for that extra amount if I give the car to them?
Asked by copperchick - Tue May 6 14:02:51 2008 - - 7 Answers - 0 Comments

A. Yes. You still have to pay the difference. They can and will garnish your wages for it as well.
Answered by A W - Tue May 6 14:10:49 2008

Anyone know how to get out of a car when you're carrying 13k of negative equity?
Q. We're still having lots of engine problems with our '04 Nissan Titan. It's got low mileage and apparently needs a whole new engine. We want to get rid of it but the dealers we visited over the weekend aren't willing to carry over that much negative equity.
Asked by Hating Nissan - Tue Oct 30 16:55:04 2007 - - 5 Answers - 0 Comments

A. How on earth can you have that much neg. equity in a Nissan? They usually hold their value well. I'd pay it off asap and move on. There should be a warranty to cover the bad engine?
Answered by Geaux LSU Tigers!!! - Tue Oct 30 17:20:52 2007

Can I lease a car with a trade in with negative equity?
Q. I know I can, but at the end of the lease where does that negative equity go?
Asked by Crystal - Fri Nov 23 12:09:24 2007 - - 2 Answers - 0 Comments

A. Your negative equity adds to the price of the new car, just like with a loan. It means your payments will be higher so that you'll have paid off the negative equity by the end of the lease. Depending on how much negative equity you have, you may have trouble getting a lease company to accept it without a substantial down payment.
Answered by CarMan - Fri Nov 23 13:17:26 2007

Can you hide negative equity in a new car?
Q. I am looking at getting into a new car. I decided to go thru enterprise car sales. I still owe 9k on my current car and its only worth 3k (yeah i know), so I'm upside down 6k. The salesman says they are able to hide a lot of the negative equity in a new car that doesn't have a blue book price yet. Is this true? and if so exactly how much would they be able to hide?
Asked by -=OG=- - Mon Jul 21 10:48:51 2008 - - 6 Answers - 0 Comments

A. First of all, be very wary of a salesman that says they can hide negative equity. Secondly, why would you want to buy a former rental car? Most people drive rental cars very hard. They aren't hiding anything. Negative equity is there clear as day, and you are going to pay for it in your next loan and in the long run. Even with good credit, you may have a difficult time finding a lender that will finance you for $6K over what the vehicle you are purchasing is worth with a reasonable interest rate (5-7%). Even if you do find one, it isn't a good idea. Example, you trade your car in for a $20K car, with a loan for $26K. Besides probably not lowering your current payments, even when you drive that used car off the lot, it… [cont.]
Answered by Stupid Flanders - Mon Jul 21 13:06:51 2008

How Does One Pay Off Negative Equity?
Q. We are considering selling our house but are concerned we may be left in negative equity. If this is the case, how would we be expected to pay the balance? Would it have to be repaid immediately in one chunk, or would we pay it off monthly, like a loan? UK only please. Thanks Ernie. Very helpful. We won't be on the council house list anyway as we'll be moving into our other property that we own. Would you be interested in renting from us?
Asked by Xai - Tue Dec 30 11:35:04 2008 - - 6 Answers - 0 Comments

A. I suppose it all depends on your lender. When we sold our house we had to take out a separate loan to pay off the neg equity when we sold. Do you have to sell, because I really wouldn't recommend it unless its absolutely necessary. Hope this helps
Answered by dee - Tue Dec 30 11:43:00 2008

In CA, when a person forecloses on there home or short sales it- will they be liable for the negative equity?
Q. If someone forecloses there homes or short sales there home, will they or can they be responsible for the negative equity or the negative loss the banks took on the home? What if there was a second mortgage, will they be responsible for the extra dollars or does the bank lose out completely and have no recourse to collect money as the asset was reposessed?
Asked by Anselmo M - Sat May 3 17:40:25 2008 - - 5 Answers - 0 Comments

A. Both judicial and non-judicial foreclosure are available, but the non-judicial deed of trust sale is overwhelmingly preferred. California has a one-action rule, in which a lender must elect one action to take against the borrower if the borrower defaults. If the lender forecloses the deed of trust out of court, the lender has chosen one action and may not bring a lawsuit to recover a deficiency, which would be a second action. If the lender chooses to sue the borrower and obtain both a foreclosure order, and if the proceeds of the judicial sale of the real estate are not sufficient to repay the loan balance, then a deficiency for the balance is allowed. Such a suit is permitted as the lender's one action. California lenders rarely elect… [cont.]
Answered by Dawni Do Right - Sat May 3 18:49:29 2008

would paying off my cars negative equity then trading it in be a smart idea?
Q. i currently owe 14,000 on a car that's only worth 7,000 trade in value, a 2007 chevy impala im very upside down in. i want to get out of it and into another vehicle and letting go of the car is not an option because i don't want to kill my credit.i know trading it now the negative equity would just be added onto my new payment would it be a good idea to pay the cars negative equity down then trade it in?
Asked by jorge v - Tue Sep 22 22:58:21 2009 - - 2 Answers - 0 Comments

A. Don't take this the wrong way, but if you owe that much, then you probably got ripped off by the dealer - which will likely happen again. Also, I very much doubt that an '07 Impala is worth only $7k (Blue-Book numbers are created by a dealer organization, so trade-ins are very low and sale prices are exceptioanlly high), unless it has VERY high mileage, so it looks like you are already on the path to get ripped off again. Please consider keeping the car. Value for lowest model Impala: On the more general question of paying cars off and trading them vs. rolling the loan, it depends on whether the new interest rate (on the new car) is lower or higher than the old one (on the Impala). Only the remaining principal should get rolled over. [cont.]
Answered by Buy the Numbers - Tue Sep 22 23:45:37 2009

Is leasing a car a wise way to get rid of negative equity?
Q. I am looking to lower my car payment but am estimating that I have around $5K in negative equity. My current payment is really high because of I was upside down when I bought this car.A friend told me that leasing a vehicle would be a better way to go since at the end of the lease term my negative equity would be gone. Is this correct? will they not just roll it over into the new contract the way they do with purchase loans?
Asked by yadayadayada - Fri Jan 1 19:29:33 2010 - - 6 Answers - 0 Comments

A. After you lease, you have nothing to show for it. I would just pay off your current car.
Answered by REV B - Fri Jan 1 19:34:03 2010

Can I sell my car with negative equity?
Q. I want to sell my car. I owe more on it than it's worth. If I sell it to a dealer, can I continue to pay the negative equity on my loan? Or do I have to pay the negative equity to the dealer? And how does it work if I sell it privately? Would I still have to make up the difference when I sell the car? Or could I continue paying off the remaining balance on the loan?
Asked by ( -_- ) - Thu Jan 29 07:38:43 2009 - - 5 Answers - 0 Comments

A. If you trade to a dealer, then yes, they would roll the rest of what you owe onto your new car loan (not very fun). Say you have a car that you owe $5k on, and the car is worth $3k. You would give your car to the dealer, but the new car, then they would add the extra $2k you owe onto the new loan. If you sell it privately, that new buyer (or the bank they're getting a loan from) is going to want the title. You're gonna have to get it free and clear before you sell it privately. If you don't have the cash on hand to pay it off, there's not really going to be a way to sell it privately. The only way you could is if the new buyer is paying cash, and is willing to wait for the title to be delivered to you, so you can in turn sign it over to… [cont.]
Answered by SarasotaRiders - Thu Jan 29 07:59:13 2009

Selling a vehicle with negative equity?
Q. I need to sell my vehicle, as the monthly payments are no longer as affordable as they once were. I owe $12K and the vehicle has $3K in negative equity. How does this work? Will I simply have to fork up $3K to get rid of the thing?
Asked by trident_of_paracelsus - Thu Oct 5 14:25:19 2006 - - 7 Answers - 3 Comments

A. You can always backtrade we have had customers who need to lower their payment and will trade for a smaller, cheaper vehicle to get their payment lower. The 3K you are out will be financed with the new car, but your payment will be more affordable.
Answered by msdagney - Thu Oct 5 17:45:43 2006

In divorce if a family's house is upside down, does the person moving out have to pay 1/2 the negative equity?
Q. My buddy is married and has been separated from his wife for over 2 years, but still living in the same house. He is at a point where he can no longer deal with living in the same house together; however, the house is $40k upside down. If he moved out and they got divorced, would he have to pay her 1/2 the negative equity?
Asked by Notyme4BS - Tue Jul 13 15:19:21 2010 - - 10 Answers - 0 Comments

A. basically yes. Simpler answer is to continue living there but stop paying the mortgage, so the house gets foreclosed on instead, and move out at that time... So long as the divorce doesn't end up settled before the foreclosure, it would work. In the end its a 50/50 split of all assets + liabilities.
Answered by Eric - Tue Jul 13 15:35:07 2010

the house we are trying to buy is in negative equity?
Q. we have been informed that there is a problem due to the fact the sellers of the property are in negative equity.This as only come to light now all suveys have been carried out and the sale of our own property is nearly complete.We have been informed by the vendors EA that if they cannot arrange a loan to cover the negative equity the property will be repossessed.Having spent time and money on our hoped to be future home we are wondering where we can go from here?
Asked by delicia m - Wed Jan 10 12:07:07 2007 - - 5 Answers - 0 Comments

A. Not your problem to sort out the negative equity. Get solicitors to talk to each other. Their solicitor should inform mortgage company that purchase by you is immiment. The mortgage company - if informed by solicitor will usually wait a reasonable time as they stand to get more this way. The SELLERS will then need to raise a loan to pay the difference. It is highly likely that the sellers will not be able to sell so you should be prepared for this. Don't spend any further money on this purchase until this gets sorted out.
Answered by Biz Guru - Wed Jan 10 12:42:16 2007

How can a person get out of a car loan with negative equity?
Q. In April of 2006 I bought a brand new Nissan.In the loan there was a negative rollover of $3,000, so the total amount of the loan ended up being $21,000. I have it paid down to $18,900 but I'm finding the payments way out of my budget. The trade in value of the car is now only $11,500. What are my options? I really do not want to effect my credit score but I desperately want to get rid of my car.
Asked by Citygirl - Tue Jan 23 21:32:17 2007 - - 4 Answers - 1 Comments

A. Your first mistake was buying a car that ended up with you having a $ 3000. negative from there you still have not learned a lesson, you buy a brand new car and within a year you cant afford payments and now your looking for a way out being in a hole twice as deep, I am sorry to be harsh but the truth is the truth... If you dont want to blemish your credit , one option is to ask lender or shop around to re-finance for 84 months that will lower your payments and still have a car...on a 2006 model 84 months is acceptable
Answered by Ray - Tue Jan 23 23:51:27 2007

What to do in case of negative equity on home loan during divorce?
Q. The home has negetive equity. Wife has no job due to being a stay-at-home mom, but is looking for work. Husband has job, but is going to pay large amounts for spousal and child support. Neither can afford to "buy out" the other. Neither wants the house nor can afford a major repair should that happen. Divorce is pending. Many things are contingent upon wife finding employment. Bankruptcy is not an option as debt will still be owed and wife has no job! Any ideas? Thanks
Asked by Penny's from Heaven - Wed Jun 6 07:56:35 2007 - - 7 Answers - 0 Comments

A. Sell it and take the loss. Chapter 7 Bankruptcy can and will eliminate the debt. You should consult with a bankrupcty attorney. The initial consultation is usually free, and they can give you the best advice even if you decide not to file for bankruptcy protection. Don't get bankruptcy info online though, because the local rules can vary with state and locality. The Best advice I can give is: 1. Put the welfare of the children first. 2. reconcile. Divorce is hell. BTW: There is an old saw about this, I think Dick van Dike said it once in a movie: She gets the car, I get the payments She gets the house, I get the payments She gets the elevator, I get the shaft Now there is a great solution to your problem, you keep the house, and he… [cont.]
Answered by Feeling Mutual - Wed Jun 6 08:05:02 2007