by ncapron » Tue Nov 04, 2008 01:41 am
I have a loan through one of those Title Cash places. I borrowed $1200.00 and have made payments totaling $650.00. I was at no fault in the accident and the other drivers ins. company said the car is totaled according to Missouri law and will pay $3600...I want to keep the car b/c it is still drivable and I need a car for work. To buy it back is $750.00...The ins. company offered the lienholder $1600.00 to pay it off so that I will have enough left to fix the car, but they will not budge....although they do not know that the pay off is $3600
My question is....Can the Insurance Company tell the lienholder that $1600 is all they will pay and leave me owing the balance and still keep the car? Also, does the ins. company have to tell them that the payoff is $3600 or is that between me and them?
Sorry this was so long :)
My question is....Can the Insurance Company tell the lienholder that $1600 is all they will pay and leave me owing the balance and still keep the car? Also, does the ins. company have to tell them that the payoff is $3600 or is that between me and them?
Sorry this was so long :)
Posted: Tue Nov 04, 2008 01:40 am Post Subject:
well ncapron first off it's not too long, in fact maybe it could've been longer...not sure I'm understanding all of this...
I borrowed $1200.00 and have made payments totaling $650.00.
Is this amount in addition to what you owe the lein holder? I was at no fault in the accident andthe other drivers ins. company said the car is totaled according to Missouri law and will pay $3600
ok they are saying that is the value of the vehicle right? ...I want to keep the car b/c it is still drivable and I need a car for work. To buy it back is $750.00
Then that would be $2850.oo and you keep the car......The ins. company offered the lienholder $1600.00 to pay it off so that I will have enough left to fix the car, but they will not budge
well of course they won't why would they take 1600 if you owe 3600...or do you mean you owe 3600 but you are only getting 1600? i'm confused ... please break it down like this....1/ How much do you owe the lein holder to pay off this car?
2/ Do you owe a pay day loan place ON TOP of what you owe your lein holder? If so how much, and who has the title to this car?
3/How much TOTAL is the insurance company willing to pay? Not counting what they would subtract for the salvage value?
4/Who do you make payments to?
5/Were you injured? If so do you still have a pending bodily injury claim?
My question is....Can the Insurance Company tell the lienholder that $1600 is all they will pay and leave me owing the balance and still keep the car?
Yes, no and maybe...it will depend on what the lein holder does...Also, does the ins. company have to tell them that the payoff is $3600 or is that between me and them?
See here's where I'm confused...tell who? The leinholder KNOWS what you owe them, no one has to tell them...please explain this better..Answer these questions and lets see if we can sort this out better...also are you sure they gave you an acurate and fair estimation of the value of your vehicle? If you want I'll run a value, I need year/make/model/options/mileage/prior UNREPAIRED damage...
Posted: Tue Nov 04, 2008 06:50 am Post Subject:
Well, this is my understanding
The OPs total loan was of $12,00. He paid back $ 6, 50 and he still owes them $7, 50 (may be including the interest).
The insurer is ready to pay him $3,600 including the outstanding to the lien holder.
However, the OP certainly needs to clarify more.
~Jeremy
Posted: Tue Nov 04, 2008 11:03 am Post Subject:
but then jeremy where does this come from?
although they do not know that the pay off is $3600
Also, does the ins. company have to tell them that the payoff is $3600 or is that between me and them
The ins. company offered the lienholder $1600.00 to pay it off so that I will have enough left to fix the car, but they will not budge.
I'm sooooooooooooooo :?Posted: Tue Nov 04, 2008 11:59 am Post Subject:
Lori, it reads to me as if OP has two separate loans on the one vehicle.
Kind of like a first and second mortgage.
I think he wants to pay off one lienholder, fix the car, then continue to make payments to the other.
How else do you get a $1,200 loan on a car that has a $3,600 pay-off?
I borrowed $1200.00...
....although they do not know that the pay off is $3600
Except that doesn't make sense either.
Unless, it's one of those "Rule of 78s" loans whereby you owe the interest on the loan regardless whether or not you pay it off early.
See THIS LINK.
Also known as the sum-of-the-digits method, the Rule of 78s is a term used in lending that refers to a method of yearly interest calculation. The name comes from the total number of months' interest that is being calculated in a year (the first month is 1 month's interest, whereas the second month contains 2 months' interest, etc.). This is an accurate interest model only based on the assumption that the borrower pays only the amount due each month. If the borrower pays off the loan early, this method maximizes the amount paid by applying funds to interest before principal.
It would be nice if OP would clarify his post.
Most buy-here-pay here places or so-called title loan establishments are nothing more than legalized loan sharks.
Posted: Tue Nov 04, 2008 12:04 pm Post Subject:
Lori, it reads to me as if OP has two separate loans on the one vehicle.
That's the way I took it as well Gary...What I think is they owe 3600 at the org. leinholder, but about 600 at a pay day loan place, the ins company is agreeing to pay 1600 and the op keep the car...but wants to know if the 3600 lein holder needs to know about this...that's what I 'think' hopefully they will be back and clarify.Posted: Tue Nov 04, 2008 06:53 pm Post Subject: Lienholder Payoff
I apologize that is so confusing....ok
1. I owe the lienholder (Title Max) $2500.00
2. They are the ones who have the Title. I borrowed $1000.00 in June of this yr and I still owe $2500
3. The car was declared total out by other drivers insurance although it is drivable (1998 Chrysler Twn & Country Mini van..I would say it is in fair cond.
Since I am buying the car back from the ins. company, can the ins. company tell Title Max that they are only paying $1600 so that I can get what is left from the $3600 so that I can fix the car? Also, to buy the car back, does the ins. company have to actually get the title from Title Max to sign over to me?
The reason I am trying to get some of the payoff is to fix the car and I lost my job due to no transportation and I need it to pay my rent, utlilities, etc...Thanks for your input :)
Does that make more since?
Posted: Tue Nov 04, 2008 10:33 pm Post Subject:
can the ins. company tell Title Max that they are only paying $1600 so that I can get what is left from the $3600 so that I can fix the car?
No.
If you owe $2,500 that will be paid to the leinholder to retire the debt.
You'll get the $1,100 balance.
The insurance company then owns the car and from your post they'll sell their car back to you for $750, the salvage value.
Some of the adjusters will be along shortly to perfect what I said.
Posted: Tue Nov 04, 2008 11:24 pm Post Subject: Lienholder Payoff
Thanks for the input.
I have been researching similar situations on this forum today and if I am understanding it correctly, if I can get the repair shop or adjuster to give an estimate for less than the blue book value minus the salvage value then it does not have to be considered totaled right?
Posted: Wed Nov 05, 2008 12:11 pm Post Subject:
If you owe $2,500 that will be paid to the leinholder to retire the debt.
Gary there is no contractual obligation to pay the lein holder on owner retained vehicles in third party claims...the ins. company does not get this title...it's basically the same as them paying the owner direct for the repairs, without adding the lein holder to the draft, which they would be required to do with 1st party claims, but NOT on 3rd party...Ncapron, this is state law thing...the company I work for and the state I work in, you would be happy...On owner retain salvage that are claimants we would pay you NOT your lein holder (on owner retained only)....On a claimant owner retained vehicle all they must do is verify you are the owner of the vehicle they have no contact with your lein holders to protect them (3rd party claim)...so you should just be able to request that the draft/payment be made to you..now depending on your state laws, they likely will advise the state so your title will be changed to salvage title, and you'll likely have a hoop or two to jump thru to satisfy the state your vehicle is safe..
At any rate, just ask that the adjuster make full payment to you minus the agreed salvage buy back...if they say they have to put the lein holder on the draft ask them why? and tell them they have no contractual obligation to protect this lein holder...they are not acquiring the salvage so they do not need the title for re-sale...what's the issue? There could be some law in your state that requires this, but I highly doubt it...
What state are you in by the way?
Posted: Wed Nov 05, 2008 12:12 pm Post Subject:
if I can get the repair shop or adjuster to give an estimate for less than the blue book value minus the salvage value then it does not have to be considered totaled right
yes, except it's not the blue book value...but whatever the acv of your vehicle is...I don't know what this company used to determine that...i do know it likely wasn't the KBB though...Add your comment