Carolyn,
When the car was purchased, was the car inspected by a certified mechanic? Did the inspection form note any areas of concerns? Such as, an oil leak, leak at the oil pan, leaks at the seals etc. When an inspection comes back to us, we always call the mechanic to seek their opinion and advice. If the vehicle appears to have issues, we discuss those with the mechanic to determine how critical. We have told clients the could not buy certain cars. They are not happy but they also avoided a potential disappointment. Will the dealership provide any assistance?
Do your local Dept of Jobs and Family Services, have Prevention, Retention and Contingency funds?
Our local office does and they will assist one time in a 12 month period with certain things. A car repair is allowed.. if the client is working. They provide up to $1000..not to exceed the value of the car. I would check this out and refer the client.
Regardless the client owes for the car. The best possible thing you can do is assist in finding someone that will assist her with the repairs. In Canton Ohio we assisting a client with a second loan occurs only after 12 months of consecutive payments with good history has been achieved.
It is not worth repossessing. The fees could be more then proceeds from the sale.
How much risk is there with this client? If your gut tells you low and your committees can approve a second loan in such a short period... perhaps that is the way to go. Perhaps your partnering bank will refinance the vehicle with the repair included at a two year term, which will relate in only one loan for the client. The title would then secure this one loan.
Robin Seemann in Canton, Ohio
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Sent: Wednesday, March 12, 2003 2:06 PM
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Subject: Re: [WTW] Blown engine
I have a borrwower that has only had her car about 4 months and the engine blew. The original purchase amount was only $2200. I found a engine mechanic that will replace the engine with a 6 month guarantee for about $1000 and we could give her a car repair loan. The car is sitting at a garage about 18 miles from here. I have spoken with the borrower several times regarding options. Without an engine the best she may get is around $500.
Have any of you been faced with this delema and how did you handle it. I don't seem to be getting much of a response from her because she has too many people giving her advice. Do I just repossess it and sell it to a junk yard? What a difficult situation. The good news is. The longer the program goes on the more I learn about cars!
Carolyn in Danbury
