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

Where does negative equity leave a not current 2nd mortgage?
Q. Home has $16,000 in negative equity regarding the 1st mortgage which we have current. Where does that leave our 2nd mortgage which is not current due to loss of job?
Asked by midwest73 - Tue Jun 9 10:32:27 2009 - - 3 Answers - 0 Comments

A. Totally in the negative---no equity. A 2nd mortgage is subordinant to the first. Doesn't matter why it is not current, it is, and it will affect your credit. If they go to foreclose on it, then your first lender may take action. Go to HUD approved credit counselor to learn your options. Talk with lender about loan modification, loan forbearance, and the new Obama Help for Home owners program. Keep calling and speak with more than one person at lender.
Answered by chatsplas - Tue Jun 9 10:42:31 2009

Can you roll negative equity from one house to another?
Q. Because our needs have changed, we want to sell our current house and purchase another one. The problem is, is that we owe more than it is worth. We aren't in any financial danger on our current loan, and our credit is excellent. Is there any loans or programs you can do to roll negative equity into a new house? Thanks!
Asked by Tenenbaum - Mon Dec 3 02:58:23 2007 - - 4 Answers - 0 Comments

A. There are several solutions that may work for you. A lot of key factors to consider ( besides excellent credit which is obviously a + ) are : How long have you owned the house that you are 'upside-down' on , how long has it been since you refinanced. Are there any liens on your house etc... However even if the answer to all of these questions are unfavorable and even if your credit was not great... there are still several solutions to consider. I am a professional real estate investor and would be happy to help. One of my areas of expertise are creative / private financing. Feel free to email me or give me a call ( 877 ) 397 - 5162 at your convenience. Confidentiality Guaranteed.
Answered by Benjamin B - Mon Dec 3 03:24:22 2007

What happens when a car is repossessed that has negative equity on it?
Q. Lets say a person couldn't make payments on a car anymore, the car is only worth $20,000 but they owe the bank $35,000. If they were to have their car repossessed, what would happen? Would they have to come up with the extra $15,000 in cash or would it just go away? Basically, what happens in car repossession when there is negative equity involved?
Asked by Mrs. Dwight - Sat Oct 24 16:04:00 2009 - - 3 Answers - 0 Comments

A. you still have to pay the $15000 plus all court costs
Answered by pickmefirstplz - Sat Oct 24 16:12:22 2009

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

Should I trade in an expensive car with negative equity for a cheaper one to lower my payments?
Q. I have a 2006 Dodge Charger R/T that I owe about $30,000 on. It's now worth $20,000. I pay about $690 a month for the car and I'm a few months into a refinanced five year loan. I was looking at trading the Charger in for a $17,000 Toyota Corolla and rolling the negative equity into the new loan. My payments would be about $510 on a 6-year loan with a total finance of $27,000. The Charger gets 20 mpg at best and costs $1500 a year to insure. A Toyota Corolla gets nearly 40 mpg and would cost less to insure. Plus the Charger attracts police and traffic tickets because of its appearance. However, I would be trading in a top-of-the-line car with all the options in for a very basic commuter car. The question is, "Is it worth the trade? The… [cont.]
Asked by Some Nerdy Guy - Thu Aug 16 15:34:22 2007 - - 5 Answers - 1 Comments

A. i think you should be able to answer this question yourself. you just have to first work out your priorities. eg. are you trying to save more money for your family, for an investment opportunity, or for another material possession...etc etc. think about them (eg. cool car, family well-being, financial stability, new toy...etc) and list them in order or priority. your answer should be in that list :O) of course the move will need to be financial sound in the first place... considering your outstanding amount on the Charger. your loan agent should be able to advise you on that.
Answered by ckowyong - Thu Aug 16 19:35:14 2007

How is a used car trade-in financed when it has negative equity?
Q. Example, car being traded in is worth $26K with a loan payoff of $30K. If the car I want is $26K, is the full $30K financed again (the dealer gets my trade-in, pays off the $30K then finances $26K for the new car + the $4K negative equity)? If the car I want is $34K, is $38K financed (the dealer gets my trade-in, pays off the $30K then finances the $4K negative equity + $34K for the new car)? If the car I want is $28K, is the amount financed $32K (the dealer gets my trade-in, pays off the $30K then finances $28K for the new car + the $4K negative equity)? If the car I want is $24K, is the amount financed $28K (the dealer gets my trade-in, pays off the $30K and finances the $4K negative equity + $24K for the new car)? These calculations… [cont.]
Asked by Sammy - Wed Jun 21 23:31:42 2006 - - 6 Answers - 0 Comments

A. You basically pay more for the car than the selling price - the new amount financed is the price of the car plus the excess loan amount, added together into a new loan. You should really keep a new car that is on a loan for at least 2/3 of the loan period and you won't get in this situation. If you are paying too much interest, make about $40 more in principal payment per month and you will pay the loan off sooner and incur less interest.
Answered by jstmother - Wed Jun 21 23:37:16 2006

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

if i sell my home, what happenes to the negative equity?
Q. I am interested in selling my condo in CA, however it has negative equity of around $20k. What happens to it? Do I have to pay it back? Do I have to pay any of that back?
Asked by meeee_3 - Fri Nov 16 01:17:24 2007 - - 5 Answers - 0 Comments

A. If you owe 100,000 on your home and can only sell it for 80,000 THEN you will have to pay 20,000 just to get rid of it!!! yep - sorry and nope - it's gone so - you have 20,000 reasons NOT to sell at this time
Answered by tom4bucs - Fri Nov 16 01:21:46 2007

What to do if you have Negative Equity on an Auto Loan?
Q. I currently have about $4000 negative equity on my auto loan. I don't know what to do because I need to sell my car but I cannot get what I owe. I can't come up with the $4000 difference. The reason I want to sell it is because my payments are way to high..about $600/mo and I can't afford it. My credit isn't that great either. I have been to many dealerships and they will not finance an older car and lower my payment. I can get a newer car but have the same payment, wich doesn't help me because that's the entire reason I need to get rid of this car. Very Frustrating! I don't know what to do...Any suggestions will help.
Asked by rachaelmoon - Thu Jul 19 18:42:03 2007 - - 3 Answers - 0 Comments

A. if you can't afford the payments you should not have financed the car to begin with... the only way to get rid of negative equity is to pay down the difference... and make better financial decisions on future.
Answered by Ksyrium - Thu Jul 19 22:03:29 2007

How are some car dealerships able to make you a deal REGARDLESS of negative equity and credit issues?
Q. But other dealerships won't even give you the time of day? I have had this happen just about every time I have purchased a car. The dealership will run my credit and tell me my score is too low, and that I need to have $4,000 to $5,000 down before they can do anything. I may walk into another one that will tell me the same thing. I wait a few days or a week later, go into another dealership and they are able to put the deal together. Most of the dealerships use the same lenders, so what is the problem? For instance, in May of '05, I purchased an '06 Isuzu Ascender. I traded in a car that my aunt had leased in her name only. Until I purchased the Isuzu, I had not financed a car in my name since '96. Before I got the Isuzu, at least… [cont.]
Asked by Hoping he will bless me with #1 - Thu Jun 28 12:57:23 2007 - - 10 Answers - 0 Comments

A. The dealerships that are showing you the door are doing you a favor. You have "rolled" negative equity into new loans to the point that the "structure" is out of line with a prime lenders guideline. Most prime lenders will only finance 120% of invoice or low book if it's a used car. Sub-prime lenders (read that high interest lenders) are more flexible because they are making so much more money. That is how some dealers can "get you done". Look at what the "total of payments" line on the contract. When you sign up for this type of loan you can easily double what you actually pay for the car. Do yourself a favor and listen to the ones that are telling you no. Stick with the car you have and try to refinance it with a lower interest rate… [cont.]
Answered by Tom S - Thu Jun 28 16:44:02 2007

how to dealers bury negative equity on a NEW car?
Q. i owe 20,000 on a 10,000 dollar car an want to trade it in for a new car worth 21,700 how much negative equity can be buried.
Asked by college bound - Sat Aug 22 01:02:19 2009 - - 5 Answers - 0 Comments

A. It depends on the lender. Tacking on 50% more to the car price will be hard to do though. You better have great credit though.
Answered by Anon - Sat Aug 22 01:07:52 2009

How much negative equity will a bank approve?
Q. How does negative equity work. I owe 20,000 on a 10,000 dollar car? trade it in for a 2010 mustang for 21,700
Asked by college bound - Sat Aug 22 00:59:31 2009 - - 3 Answers - 0 Comments

Can a proprietorship convert to a partnership and transfer over negative equity?
Q. I've heard that you can't transfer negative equity when going from proprietorship to corporation but does that same rule apply to a conversion to partnership? By the way, if anyone can provide sources of documentation for the answers to this question, that would be great. In response to Ronald, the client wants to transfer his property from his sole proprietorship to the partnership of which the two partners are himself and his LLC property management company. Therefore, he doesn't care about the negative equity since it's still all his anyway. Apparently you're not very familiar with this kind of thing so maybe you should refrain from answering questions you know nothing about. You're just making yourself look like the fool. Umm yeah,… [cont.]
Asked by whitelightning - Thu Feb 15 14:33:29 2007 - - 2 Answers - 0 Comments

A. I'm no expert but surely his accountant would be the one to ask
Answered by The Fat Controller - Sun Feb 18 13:28:17 2007

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

Where to refinance high interest mortage when the property has negative equity and all payments are current.?
Q. I have owned a house which is my primary residence for 2 years. Every payment is CURRENT and they have never been late. The property currently has negative equity and the second mortage company won't even talk to me regarding refinancing it. The interest is over 9%. My credit is ok but given the tough financial times I am not likely to get a better rate. My question is, how to I refiance to a lower rate when I've demonstrated 100% on time payment.
Asked by rocket_scientist_guy - Mon Nov 24 10:06:58 2008 - - 4 Answers - 0 Comments

A. Unfortunately, you can't - banks will not willingly take on a negative equity mortgage, especially given the problems they have already had with sub-prime loans and negative equity.
Answered by Steve D - Mon Nov 24 10:17:09 2008

Can you vaccinate against negative equity?
Q. My mortgage company told me I got negative equity. That's so unfair, I've never slept around or been immoral. Is there a vaccination against this so I don't get it again?
Asked by __A_YAHOO_USER__ - Sun Mar 15 14:32:28 2009 - - 4 Answers - 1 Comments

A. I would venture a slightly humourus reply, in the same vein as your question, and not being sure if Poo Poo is your possible cure or your name, in this medical forum, I would suggest that there is no vaccine at this time for these symptoms. So,although there is no cure, other than economic recovery, leasing will cure the negative equity problem by absorbing it into the lease payment. Alternate measures may be undertaken by a financial injection, which I am assured is quite painless and relieves the symptoms almost immediately. Hope this helps matador 89
Answered by matador 89 - Sun Mar 15 14:51:13 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

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