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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Lending company will not refinance because of the economy.

Resolved Question:

I have been paying on this loan for nine years.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.
Hello,

There is no need to continue to submit new questions. It is easier if you stay on the same thread.

I had sent you a request for information asking if you work?
Customer: replied 8 years ago.
I am retired with a small pension ans SS.
Expert:  Ellen replied 8 years ago.

Hello,

Thank you for your information. I am sorry about your situation.

Unfortunately if you do not pay the loan, the lender may foreclose on the boat.

Typically lenders will reduce any deficiency to judgment and attempt to collect on that judgment against the borrower's assets or wages.

However in your situation, you do not have any assets or wages that can be attached. You are what is sometimes known as "judgment proof". This means that once the lender obtains a judgment, he will not be able to collect on it.

You may be able to use the fact that you are judgment proof to your advantage negotiating with the lender. You can contact the lender and try to negotiate the surrender of the collateral (the boat) for full settlement of the amount you owe.

This procedure allows you to transfer your boat voluntarily to your lender in exchange for having your debt or deficiency forgiven. This will not save your boat, but it will help you with your chances of getting another loan in the future. Although it is a negative strike on your credit rating, it is less harmful than a boat repossession. The lender benefits because the lender does not have to waste time and money on the repossession.

You will still owe the boat storage fees.

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,
FLAandNYLAWYER

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Customer: replied 8 years ago.
Reply to FLAandNYLawyer's Post: If the home is in my wife,s name and she is on the loan documents can they come after her home?
Expert:  Ellen replied 8 years ago.
Hello,

The Homestead exemption amount in Oregon is $25000. The limit for couples is $33000. A creditor can attach the amount in excess of these numbers.

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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE
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