pm203

Just to let you guys know, a friend of mine was looking to reduce his boat payment on his cruiser type boat. He has a loan through Key Bank and his interest rate was 7.9%. He told them he was having a tough time with the loan and after alot of calls and a couple of late payments, they reduced his interest rate down to 3.9% and extended the loan back to the original 240 months! This loan modification took almost $500 of his payment. I guess Key would rather modify the loan than get the boat back. Just wanted you guys aware of this.

P.S. His next mission? Short sale on his boat. We shall see.

Powerquest_Baby!!

Typically though they make you roll the short sale into a new consumer loan. You dont just walk away. If you do just walk away then that short sale shows up as a charge off on your credit report--which then turns into collections, judgements and who knows what else (BK?)--depending on the amount we are talking about its probably just not worth it.

Im suprised he still wants to sell it if he's saving $500/mo! How big were his payments previously?

pm203

He didn't exactly say, but I believe around $1,400 ish?

Powerquest_Baby!!

Thats the problem isnt it? He paid (ballpark) $170,000+ (depending on down pmt) for a boat (which is basically a toy to most of us). I cant even imagine what the short sale would be in this market for a boat like that..Could be over $50k!

Payton

One thing to remember in this kind of situation is that the IRS will call any amount the loan is written down, income. Not the intrest change just the pricipal change. The only way to not have to claim that write off as income is to file bankruptsy.

pm203

Easily. But in the mean time, with his lowered payments, he is still better off. He also told me that he short saled one of his homes and got most of his credit cards reduced to 1%. He says its not easy, but possible.

30ctsutphen

People need to have some self respect and pay the debts they incurr IMO.
Thats the problem a bunch of dead beats walking away from notes they signed.

They took on the debt, They made a promise to repay (thats what a note is in fact) and then they walk away a stick the person who loaned them the money and they wonder why no one is lending right now.

WTF is wrong with people.
Doesnt anyone have any morals anymore.

Dont borrow what you cant repay and dont spend what you dont have.


This country continues to reward those who act like A$$Hol^ES.

Look at the banks, The ones who screwed people and wrote crap loans got bail out money and the ones who played by the rules (not lawsmade by lobbyists) did the right thing and are in good shape got NOTHING, ZIP Makes me sick. Let the dead beats go under and reward the banks that did the right thing. Help them do better and get ahead.


Get rid of variable rate mortgages, Cap credit card rates ,limits and require 20% down on any loaned purchase and this drop in the economy would be in much better shape.

Powerquest_Baby!!

You need to run for political office! All of these suggestions would go a long ways towards fixing the credit markets and reducing bankruptcy's. Think about all the billions that have been lost due to shrinking market values of homes, cars and boats as a result of zero down and reposessions. If people had put 20% down it would be interesting to see how different all of our lives would be (from a market value/equity standpoint)--I know for a fact the boat industry would be smaller but that would have helped maintain values and repos would be a fraction of what they are now...

pm203

I'm not suggesting anyone stiff anyone. But, if you can reduce your interest rate, why not? The bank is certainly happy that their loan isn't going into foreclosure.

Jupiter Sunsation

Was it one of the teaser rates to start with 1.9-3.9% for 24-36 months then it jumped up to 7.9? If so I could see them dropping it back down but if it was a 7.9 fixed from the start I would think they would play hardball. I agree with you, if they will take less then knock down the rate for the guy.