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  #13  
Old 08-28-2014, 01:29 PM
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Re: Might need to Sell my Jeep Quickly

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Originally Posted by 46er View Post
I would go talk to the finance manager at your dealer, not the sales guy. Explain what you need to do and that you will be coming back to buy, then just work out the price, they should take care of the rest. It's is what I did once some time ago and it worked out well. Good luck.
That's a great idea !!

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  #14  
Old 08-28-2014, 01:39 PM
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Re: Might need to Sell my Jeep Quickly

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Originally Posted by Jim_in_PA View Post
rubber', that doesn't solve the issue of debt to income if the debt is just shifted to a different instrument. The OP needs to eliminate the $27K debt totally to do that. It's not just about the monthly payment. It's the debt.
rubber is actually right. It's monthly dept ratio that matters, not really total dept.

I could refinance it or roll it into the loan effectively (psychologically that drives me nuts 30 year loan on my Jeep, but sometimes it's the best thing to do). But I'm a little short on cash too so can't afford to just pay it off, I need to pay it off and get the equity back. This is for second home purchase and it turns out I need 25% down and 1 YEAR of escrow for ALL debt. It's lot of $$$. I initially thought it was gonna be 20% down and 6 months escrow. But I'm not gonna let that hiccup stop me for our long term goals. I can deal with a beater Jeep for 7 months or so. We have another modern car too that is all paid for.
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Old 08-28-2014, 06:11 PM
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Re: Might need to Sell my Jeep Quickly

You do realize you can refinance car loans? Stretch that baby out to a 72 month term (interest rate will be worse but that's the least of your concerns) and see what it does for your DTI. Ask your mortgage guy how much of that 1100 you can keep on the books and still keep the loan kosher.

Assuming it's a MY2013, a 72 month refi gets a 3.81% rate from my bank, before any applicable discounts (which can add up to 0.5% or more). That would put your new monthly obligation at $369.06 (using the 27k figure you mentioned). There should be no closing costs or taxes associated. Maybe a small DMV fee to change the lienholder on the title.

Only caveat, it would involve a credit pull. But that might be the best and quickest solution.
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Old 08-28-2014, 06:17 PM
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Re: Might need to Sell my Jeep Quickly

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Originally Posted by 46er View Post
I would go talk to the finance manager at your dealer, not the sales guy. Explain what you need to do and that you will be coming back to buy, then just work out the price, they should take care of the rest. It's is what I did once some time ago and it worked out well. Good luck.
If you trust the dealer, this may be the best advice here... they might be quite willing to deal for you and get you right back into a vehicle as soon as your loan closes.

Your lender would see any newly financed vehicle and might be able to amend your loan as a result is about the only down side I could see...
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Old 08-28-2014, 09:22 PM
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Re: Might need to Sell my Jeep Quickly

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Originally Posted by 46er View Post
I would go talk to the finance manager at your dealer, not the sales guy. Explain what you need to do and that you will be coming back to buy, then just work out the price, they should take care of the rest. It's is what I did once some time ago and it worked out well. Good luck.
If he is going to get back in a jeep soon, trade the current jeep in but have them take it now, then order a new one, should take 8 weeks or so to come in. This will lower his income to debt ratio like he wants.
If he wants to get into a jeep soon this should work as long as the dealer will work with him.
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Old 08-28-2014, 10:03 PM
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Re: Might need to Sell my Jeep Quickly

Any alternative that includes turning the car in to the dealer will result in him being hosed on the resale value.
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Old 08-28-2014, 10:25 PM
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Re: Might need to Sell my Jeep Quickly

This reminds me of something that happened to me when my wife and I bought our first home. I had a "weekend" car that was expensive. The loan processor said no dice on the loan with that monthly payment. Sold the car quickly and ate a huge depreciation figuring that our getting into a house was worth the costs involved. Fast forward to the day we went to the escrow office to sign the papers... Figuring we only had to show up to sign, the person there said there was one more unsatisfied item before we could close on the loan... They needed a copy of the loan on the car. Told them there was no loan because I sold the car. The lady said it was funny because the loan went through WITH the car figured into the numbers. Then she proceeded to laugh her ass off that I sold the car unnecessarily. I signed the loan papers on the home and walked out of there. The insult of her laughing was too much to bear, so I busted her car windows and set her car on fire.


Oh crap, the last part was only an angry fantasy. Truth is I walked out instead of being happy with the new home, feeling flat busted and used.

Make sure you are being handed facts rather than being manipulated because some asshole is worried the loan won't go through and they will lose their commission. In the end, I think that is why they told me to dump the car.


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  #20  
Old 08-28-2014, 10:47 PM
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Re: Might need to Sell my Jeep Quickly

1100/mo sounds like a 36mo loan, refi for 72 mo and payment would drop A Lot as mentioned. Only issue would be if there is a significant early payoff penalty with the original loan (why I use my credit union for everything).

Also if in Florida, the service cotract is transferrable. Dunno about up in the slow corner.
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Old 08-28-2014, 11:19 PM
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Re: Might need to Sell my Jeep Quickly

How tight is the DTI ratio? I'm a real estate broker myself and I've thought my way out of situations like this many, many times. Feel free to PM me and give me the specifics (total monthly usable income, the target DTI, current DTI, loan program and all) there might be some way to squeak it by without you selling the Jeep. Don't automatically assume your mortgage guy is thinking outside the box...in my experience few of them are really good at that. I am...happy to offer advice if you want.

As to the question at hand, nothing more I can add to what others have said.
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Old 08-29-2014, 12:14 AM
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Re: Might need to Sell my Jeep Quickly

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Originally Posted by SW03ES View Post
How tight is the DTI ratio? I'm a real estate broker myself and I've thought my way out of situations like this many, many times. Feel free to PM me and give me the specifics (total monthly usable income, the target DTI, current DTI, loan program and all) there might be some way to squeak it by without you selling the Jeep. Don't automatically assume your mortgage guy is thinking outside the box...in my experience few of them are really good at that. I am...happy to offer advice if you want.

As to the question at hand, nothing more I can add to what others have said.
Thanks for the offer. I really want DTI ratio as low I can get it. I'm at 44% without the Car loan. Some banks allow 47%. Lots of variables and I want some wiggle room. It's not a big deal and when I'm done I may upgrade a few options I wished I had got in the first place.
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Old 08-29-2014, 12:46 AM
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Re: Might need to Sell my Jeep Quickly

Just advice for whatever its worth, take it or leave it..perhaps it may even help somebody else. I wouldn't worry about wiggle room insofar as getting it approved. Its an open and shut thing, as long as you KNOW the income is all usable (sometimes we have issues with unreimbursed business expenses, etc. Make sure the income they are using matches whats on your tax transcripts perfectly, often an issue at the 11th hour when the transcripts come back and all of a sudden the income doesn't match whats on the returns) then the numbers are what the numbers are. You either qualify or you don't, not a lot of ambiguity.

The cheapest option will be to go ahead and get a conventional loan on the new house, a loan you can keep and not have to refinance. Another option short term would be to close on the new house with an FHA loan (depending on the price point) and then refinance it conventional after your current house is sold. An FHA loan has a higher DTI ratio allowance (as much as 55-60%). This loan would be more costly because of the required monthly and up front MI but depending on the bath you'd take on the Jeep or the timing it might be an option. Bear in mind many lenders will do that FHA loan for basically nothing because they'll have to give their fee back when you refinance it within 3 months anyways, so they'll make their money on the refi.

Likely your best option is indeed to sell the Jeep and get your DTI down low enough to do it straight conventional. The bath you take there will likely be less than the cost of having to do it FHA and then refi into a conventional loan, and well worth the life upgrade of being able to buy before you sell.

Good luck with it, and if anything comes up you want some impartial advice on with the loan or the sale/purchase don't hesitate to PM me.
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  #24  
Old 08-29-2014, 05:26 AM
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Re: Might need to Sell my Jeep Quickly

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^^^ What good would clearing the auto title due if it is a debt to income issue - there would still be the debt and the monthly payments in the equation regardless of whether or not the auto title shows no encumbrances...
If he gifted the vehicle to a family member, the debt would be erased from his name. In some states this can be done with no sales tax due on the vehicle "sale".
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