Volunteer repossesion of auto?
We owe $3000, but cannot pay. the car is worth 3000
We told the bank to reposses the car, They said that they will
just write off the loan, and to take the car to a junk yard.
If they write off the loan, doesn't that mean I have a free and
clear title? If not, How can I take it some where to get rid of
it if I don't have a title. I live in texas, but the bank is in Ohio
Wrong. They will auction the car at fire-sale pricing and will expect you to pay the difference on what you owe and what the car sells for. On top of that, it is still a repo on your credit report -- for FIVE years. Why don't you sell it? Even if you can only get what you owe you will still be in a million times better shape and your credit won't suffer as bad (I assume it's already trashed). You could probably talk the bank into letting you sell the car for $2500 and finish the loan through payments. Again, this is a MUCH better deal as you can still maintain some measure of control.
