Showing posts with label repo cars. Show all posts
Showing posts with label repo cars. Show all posts

Friday, December 21, 2012

Maine Repo Boats, ATV's, RV's, REO Property, Cars, Trucks, Airplanes, and More.


New York Repo Boats, ATV's, RV's, REO Property, Cars, Trucks, Airplanes, and More.


Tuesday, February 1, 2011

http://repofinder.com - http://money.cnn.com/2011/02/01/news/companies/repo_spike_mtv/

Repo men: The new face of reality TV
By Aaron Smith, staff writerFebruary 1, 2011: 1:14 PM ET


NEW YORK (CNNMoney) -- The producers of "Jersey Shore" are launching a reality show about a topic that's attuned to tough times: repossessed cars.

Spike TV, which is part of MTV, is about to begin production of "Repo Games," a quiz show hosted by repo men and starring hapless car owners who fall behind on their payments, according to MTV spokesman David Schwarz.

0Email Print But all is not lost. On this show, they'll have one last chance to save their cars. The dispossessed owner can earn their cars back, fully paid, if they correctly answer three out of five trivia questions.

"They're fun questions, seemingly easy questions, the stuff that the majority of people can answer," he said. "We're not trying to stump people with impossible questions."

For example, they might have to identify state capitals, said Schwarz. But if they don't get three questions right, it's off to the impound yard.

"It's a show with real stakes involved," he said.

Sneak peek at Super Bowl ads
The show brings to mind "Repo Man," the cult comedy flick from the 1980s starring Emilio Estevez as a suburban punk who gets recruited into the often-hazardous job of repossessing cars.

But unlike the movie, "Repo Games" is actually hosted by real repo men who snatch cars for a living, not actors, said Schwarz.

The show won't just be about people who are too broke to make their car payments, he said. It will involve a cross-section of cars and people, including rich owners with luxury cars who space out on making payments.

"People who have had their car repossessed range from Paris Hilton to your average Joe," he said.

Schwarz said the show is currently in production and will air this spring.

Wednesday, December 15, 2010

http://www.wnep.com/news/countybycounty/wnep-lacka-scr-theft-kevin-prasi,0,7771735.story

Man Charged With Stealing Thousands From Employer



A man in Lackawanna County is accused of ripping off more than $300,000 from his employer.

Investigators said he did this to feed his gambling problem.

Kevin Prasi, 28, of Clark's Summit handled the finances at Vullo motors in Scranton. Prasi told investigators, he had a serious gambling addiction.

Investigators said he stole more than $300,000 from his former employer.

Prasi worked at Vullo motors in Scranton, as the finance manager.

Investigators said he stole the money by selling vehicles and not reporting the sales to the dealership. He pocketed nearly $80,000 doing that.

Prasi would also take out fake loans, and keep that money for himself, which was another $80,000.

"On cars that were sold from Vullo motors, that were repossessed, he would then resell them, and then not use the proceeds to pay the loan off, he would keep that money for himself," said District Attorney Jennifer McCambridge of Lackawanna County.

Investigators said Prasi did this for almost a year, until Vullo owners confronted him about it.

In court papers Prasi admitted to stealing the money and said it was his gambling illness that led him to do it.

He even worked out a deal to try to pay all the money back.

He began paying $300 a week until last month. He stopped because he didn't have a job, and he said he couldn't afford the payments. To date, Prasi has only paid back about $5,000.

Owners said Prasi worked for them for several years, they treated him like family, and this is all too disappointing.

"You never want to think that this could happen to a business, surely in this economy it's affected their bottom line, and ultimately I think that's what led them to the discovery is the numbers just weren't adding up," said District Attorney McCambridge.

Prasi is charged with seven counts of theft, and seven counts of receiving stolen property.

He is out on bail.

Sunday, November 7, 2010

http://wcfcourier.com/news/local/article_589933d4-b7a1-56b7-be3b-691c89f41e85.html?mode=story

Lenders: Repossession the last option

Lenders: Repossession the last option
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WATERLOO --- Lenders say repossession is the last --- and least preferred --- option in dealing with a lapsed vehicle payment plan.
Veridian Credit Union in Waterloo reported a 38 percent increase in repossessions from 2008 to 2009 but also emphasized that its loan volume also rose 26 percent in that same period and that it is "on track" to finish the 2009-2010 period with a 10 percent decrease in repossessions.
Trina Becker, manager of collections at Veridian Credit Union in Waterloo, answered some questions about her institution's end of the process.
Q: Where are repos trending currently? New cars? Used cars?
A: The majority of our repossessed vehicles are used cars --- only about 6 percent of our repossessions are new vehicles.
Q: What, if any, effect did the so-called "Cash for Clunkers" program have on repossession trends?
A: The main effect of the Cash for Clunkers program was the prices repossession businesses received at auction for cars. Dealers were looking to put used cars back on their lots, so they were willing to pay a little more at auction for the vehicle, which helps in the recovery of losses on repossessions. This trend has since slowed down as more used cars are now in the market.
Q: How does the repo process work? What does Veridian do to try to work out avoiding a repo situation?
A: Repossession is our last resort. We don't want the vehicle to return, as it causes more loss for the member and for the credit union. At Veridian, we try to look at every member's situation separately and see if there is any way we can help them keep their vehicle. There are situations where the member just cannot afford the vehicle and repossession is the only option. In that case, if the member is cooperative, works with us and brings in the vehicle voluntarily, it will save on costs and expenses for everyone.
Q: How many repossession agents does Veridian work with?
A: Veridian works with several repossession agents throughout Iowa and out-of-state.
Q: How long does Veridian wait before contacting a repossession agent?
A: This varies on the member situation.
Q: What happens then?
A: Once the repossessor is notified of a vehicle that needs to be picked up, they find it, clean it up and prepare it for sale. Members are responsible for the remaining balance of the loan, as well as any repossession and clean-up fees incurred, even on a voluntary repossession.
Q: Does Veridian sell its repossessed vehicles?
A: Veridian currently sells vehicles several different ways. We send them to dealer auctions and public auctions that are open to anyone. We have sold them in our Swap Sheet and also online. We use several different dealer auctions in Iowa and out-of-state.

Thursday, October 21, 2010

http://money.cnn.com/2010/10/21/real_estate/buying_a_foreclosure/index.htm

How to buy a foreclosure in a robo-signing world

evicted.gi.top.jpg By Les Christie, staff writer



NEW YORK (CNNMoney.com) -- You want to buy a foreclosure? It has gotten a lot harder the past couple of weeks.
The fallout over "robo-signing" -- where bank executives sign off on foreclosure filings without reviewing the paperwork to make sure they're valid -- has led to a freeze on foreclosure sales, limiting the number of properties available.


In South Florida, for example, the inventory of repossessions -- also known as bank-owned properties -- for sale sank nearly 20% between late September and October 18, according to Peter Zalewski of Condo Vultures.
"The whole distressed property market is probably going quiet until the freeze ends," he said.
But, there are still bargains out there to be had for buyers who are willing to do some extra work.
"The safest and best way to buy is still when it's a bank-owned property," said Rick Sharga, a spokesman for RealtyTrac, the online marketer of foreclosure properties. "As long as there's a clear title and the buyer can get title insurance, it's a great time to buy."
In addition to bank-owned properties, there are two types of foreclosures you can buy: 1. pre-foreclosure; 2. sheriff's auction. All three are affected by concerns over the way foreclosures have been handled.
Pre-foreclosure: These homes are in the foreclosure process, but they have yet to be sent to auction. Owners are typically trying to unload them because they are "underwater," owing more on the homes than they are worth.

As a result, potential buyers must negotiate a deal with the lender as well as the owner. That makes buying complicated and slow. But, you have the advantage of being able to inspect the home before purchase -- which isn't the case at foreclosure auctions. Sharga warned, however, that prices are usually higher than at other stages of foreclosure.
Should you be afraid to buy? There are no special concerns over ownership rights of former owners. The sellers agree to the deal before it's a completed foreclosure, so buyers can purchase with confidence.
Sheriff's auction: These sales yield the lowest prices, but they are fraught with difficulties. Often the house is unavailable for inspection, leaving buyers with a long list of expensive repairs -- and much larger bill than they intended. This stage is usually best left to professionals, contractors and investors who regularly bid on these places and know what they're doing.
Should you be afraid to buy? The foreclosure freeze means that these sales are not taking place right now but the banks have already started to announce that they are planning to refile cleaned-up foreclosure affidavits and expect to resume auctions soon. Once they restart, the banks will have presumably cleaned up the paperwork, meaning these homes shouldn't have any paperwork problems.
Repossession: This occurs when the bank buys the property at a sheriff's auction, which usually happens when there are no other bidders. Homebuyers may not get the best bargains during this stage, but they can nearly always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property normally comes with a clear title.
Should you be afraid to buy? The robo-signings have now muddied the issues of who actually owns the property, making these purchases more of a crap shoot. Buyers may be concerned that former owners could challenge the legality of the foreclosure process.
On the plus side, the banks often extend preferential financing terms to buyers and may have made some repairs before putting the property on the market.
Homes are still usually sold in "as is" condition. "That means the bank won't pay for cosmetic issues," said Adam Wiener, a spokesman for the Redfin, the online real estate marketer. "Although, they will often pay for some or all of repairs that are health and safety issues. That makes the home inspection even more critical."

The freeze on foreclosure auctions means that new REOs are not hitting the market, shrinking REO inventory. Some lenders have even pulled repossessed homes from the market to double check their paperwork and make sure they have clear title before they sell them.
Once it opens up again and you've decided which type of home to buy, there are several common mistakes foreclosure buyers should take care to avoid. These include:
Getting caught up in a bidding frenzy: The banks often under-price repossessions, hoping to generate excitement, attract multiple bids and sell them quickly. The problem is, as in any auction-type sale, bidders get excited and pay too much.
"Remember," said Sharga, "there are 800,000 REOs in the banks' inventories. There'll be another home to bid on tomorrow."
Underestimating repair costs: Take full advantage of the home inspection and don't delude yourself about much the repairs will cost.
"Take along someone who can give you a good estimate of how much repair costs will come to," said Sharga.
Redfin coaches its agents to warn buyers to factor in a cushion of 10% to 20% of the purchase price to pay for unexpected repairs. "If you end up not using it, go on vacation after 6 months," Wiener said.
Not knowing what comparable properties cost: This is important in any market but especially in this endeavor. In high foreclosure areas, prices can be eroding very quickly. You want to have the latest homes sale prices on repossessed properties and try to keep your bid comparable or lower.
Buying in a neighborhood flooded with foreclosures: This is most important for people buying for the short-term. Any neighborhood saturated with REOs and foreclosures may be headed for further price falls. If you're planning to relocate within a few years or buying a bigger house, that could mean selling at a loss. A better bet, if you can find it, is to buy the only foreclosed home in an otherwise stable community. That's more likely to hold its value.
Not having financing in place: If you don't have a pre-approved mortgage, you're really not in the market. "You have to be able to move quickly," Sharga said.
Banks don't want to dilly-dally on sales; they're losing money every day that homes sit on the market. That means they'll often jump on the highest bid with the best financing already in place.
Having a loan beforehand carries another advantage: It tells you how much credit you have available. You won't spend time shopping for homes that are too expensive.

Thursday, September 16, 2010

http://www.ksl.com/?nid=148&sid=12447945


Utah remains in top 10 states for foreclosures
September 16th, 2010 @ 8:00am
SALT LAKE CITY -- The number of homes lost to foreclosure nationwide jumped nearly 4 percent in August. Utah is still in the top 10 for foreclosures, and the experts say the situation is likely to get worse before it gets better.
Related:
US homes lost to foreclosure up 25 pct on year
Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The numbers from RealtyTrac, Inc. show there were more repossessed homes in August than in any other month since the mortgage crisis began three years ago. The report shows 95,364 homes were foreclosed -- that's up 25 percent from August 2009.
There is some good news. The number of properties entering foreclosure actually slowed for the seventh month in a row. Experts say that is due to lenders allowing borrowers who miss their payments to stay in their homes longer.
Highest foreclosure rates
  • Nevada
  • Florida
  • Arizona
  • California
  • Idaho
  • Utah
  • Georgia
  • Michigan
  • Illinois
  • Hawaii
Rick Sharga, RealtyTrac senior vice president, says the number of foreclosures may continue to increase before the economy stabilizes. He predicts at best we'll see another record-level year of foreclosures in 2011 before the numbers begin to improve.
In Utah, one in every 230 housing units received a foreclosure filing in August. That's slightly worse than the one in 242 homes foreclosed the previous month.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
Nevada posted the highest foreclosure rate last month, with one in every 84 households receiving a foreclosure notice.

Tuesday, September 14, 2010

http://www.wpri.com/dpp/news/12_for_action/call12-car-loan-modifications-buyer-beware

Buyer beware for car loan modifications

Companies prey on fear of repossession

PROVIDENCE, R.I. (WPRI) - Could you deal without your car? If you're having trouble making payments on your car loan, beware if a company comes calling, offering to modify your car loan -- many of these companies are simply not keeping their promises, and stranding drivers with worse debt.
Paula Flemming of the Better Business Bureau tipped off Call 12 For Action to this unscrupulous practice. Auto loan modification companies are following in the footsteps of mortgage modification companies -- targeting struggling families just trying to keep their heads above water.
Flemming said there's been an increase in cars being repossessed due to high unemployment in Rhode Island and around the country. Last year, 1.9 million cars were repoed.
Crooked companies are preying on the fear of repo. A family or individual might get a phone call from a company offering to lower their payments, and "they quickly act," said Flemming.
But if you act before researching that loan modification company, you could find yourself in even bigger trouble -- like a driver given the wrong directions. Some of these companies, said Flemming, don't just fall short on their promises -- they might not even modify the loan at all!
If you're having a hard time making payments, first ask your lender to adjust your payment plan. If you do want to go to a new company, at least do your research, and check the company's reliability report with the BBB.
And always beware of advance fees; it's a red flag, even if the company says they'll give you a money back guarantee.
"You could have initially dealt with your lender and not pay any fees," advises Flemming. "[The crooked loan companies] are digging you further into a hole."
The final common sense check: get everything in writing. Ask the company's rep to send you documentation, a copy of the loan agreement or contract. Make sure it discloses the services they will provide and their terms, including any refund policies.

Monday, September 13, 2010

http://www.siskiyoudaily.com/news/x907387807/Many-questions-arise-over-YAC-incident

Many questions arise over YAC incident.Zoom Photos. Jamie Gentner.The Yreka Auto Center Service and Wash center has been closed since cars were taken from the car lot on Aug. 26. Owner Steve Long said the decision to keep the businesses closed came when he was told any cars he tried to sell on the lot would be taken, and he didn’t want to take any chances of anything happening at the other two YAC branches.


Yreka ApartmentsYreka AttorneysYreka Auto DealersYreka Auto PartsYreka Auto RepairYreka Beauty SalonsYreka Car RentalYreka DentistsYreka DoctorsYreka FlowersYreka HotelsYreka InsuranceYreka LoansYreka MortgagesYreka MoversYreka PizzaYreka RealtorsYreka RestaurantsYreka StorageYreka Tax PreparationYreka Travel.By Jamie Gentner

Siskiyou Daily News

Posted Sep 13, 2010 @ 08:39 AM

Yreka, Calif. — It’s been almost three weeks since cars disappeared from the Yreka Auto Center lot on Main Street in Yreka. Nineteen days after the event, there are still questions about what happened and different sides of the story to be heard.

Yreka Auto Center

When YAC owner Steve Long showed up for work Thursday, Aug. 26, almost every car that had been on the lot was gone and the door to the office was ajar, he said.

Long called the Yreka Police Department to report the cars stolen. He received a call back informing him that the cars had been repossessed, Long said.

He had received an e-mail the Monday before, but he didn’t get around to reading it until days later. The e-mail was from Express Auto Funding, the bank from which YAC had borrowed money for several of the cars on the lot. The e-mail demanded payment of $346,000 on eight cars by Wednesday or Long would be put in default.

But Long wondered several things: how had the company gotten hold of the keys for the cars? And why had they taken almost every car on the lot – including some belonging to local residents that were on consignment or in for service?

Long said he was told that the local man who repossessed the cars for Express Auto Funding, Nolan Henry, had told police that Long had given him the keys for the cars the night before. But when he left at around 5:30 p.m. Wednesday, Long said, the keys were locked in the closet as usual. He also said a cleaning lady who left around 7 p.m. reported that the keys were in the closet – which is where all her supplies are kept – when she left.

“If I had handed him the keys Wednesday night, why did he come at 3 in the morning for the cars?” Long said. “And why would I have given him the keys to every car?”

The police had told Long that Henry had called around 3 a.m. Thursday morning to tell them he took the cars and would look into which cars he needed to return, Long said.

A police officer had been there that morning, Long said, and Henry wasn’t stopped.

In the days that followed, Long said he retained an attorney and had several meetings with YPD Chief Brian Bowles and Lt. Dave Gamache.

But the police wouldn’t take any stolen car reports, Long said, because they determined the case was civil and not criminal. Instead, Long and the individuals seeking their cars should get ahold of Henry directly, Long said he was told.

He discovered that the cars had been taken to a ranch in Montague before being shipped to Fresno and Bakersfield, Calif.

“There are people who have their titles but don’t have their cars anymore,” Long said. “I’m not concerned about the YAC cars; I’m concerned about the 18 cars that belong to our customers that were taken.”

While working to help those individuals figure out how to get their cars back, Long said he and his staff were also trying to regroup and figure out how to stay open.

“We were told if we put cars on the lot again, they would be taken,” Long said. “So we weren’t going to take any chances until we get this settled.”

So the lot and the service center and car wash across the street remained closed – though Long has remained at the lot to field questions.

Long said he knows of a few people who have received their car. But he was told the rest of the cars would be back Wednesday, and they weren’t.

“The District Attorney’s Office says the case is civil so they can’t issue warrants, and the police say it’s civil so they can’t arrest anyone,” Long said. “They say he isn’t ‘permanently depriving’ people of their cars.”

But Long said he questions whether the parties involved have something to do with why the police won’t take action.

“I feel like I’m in a different country. ... How this went down, how the police and district attorney won’t get involved – I don’t know how all this works, but it doesn’t smell right. It doesn’t feel right,” Long said. “The character of a vehicle doesn’t change whether it’s on my lot or at someone’s house. You can’t take someone’s car.”

Long said he has never seen a repossession handled like this in his 25 years in the car business. Had it been handled differently and had the police gotten more involved from the beginning, Long continued, three businesses would still be open.

“I don’t know how more to help my customers,” Long said. “Now I’ve got to figure out what, as a business, to do and where to go.”

Finance Company

Henry was contacted several times for comment, but Express Auto Funding would only issue a prepared statement.

In the statement received Friday, the company states that it made loans to Yreka Auto Center so it could buy cars to sell on its lot.

“Several months ago, Yreka Auto stopped making payments on these loans. Now it has been discovered that Yreka Auto is guilty of several serious violations of contract,” the statement reads. “In response, Express Auto Funding took lawful steps to obtain possession of certain Yreka Auto vehicles. ... Express Auto Funding regrets the harm done by Yreka Auto to Yreka customers.”

When contacted by the Daily News for further comment regarding repossession procedures, why a list was not used so only YAC cars were taken and why several individuals had not received their cars back 16 days later, Express Auto Director David Lachtman said the company had no further comment.

The police

Bowles said the YPD got more involved in this case than they would normally get involved in a civil case. All their information on the case has now been turned over to the district attorney.

He called the situation a “mess” and said his department has spent an “extensive amount of time” trying to solve the situation at a community level.

In contrast to Long’s statement, Bowles said anyone who has requested to make a report has been allowed to do so.

But it doesn’t appear Henry was stealing any vehicles.

“If he was stealing the vehicles, he wouldn’t call the police department. You have to have intent to permanently deprive,” Bowles said. “This was a creditor collecting assets from a business. ... He said he will release the vehicles he’s not supposed to have.”

With that in mind, Bowles said, he doesn’t want to make any false arrests.

“We don’t want to intrude on someone’s rights, but yet we want to protect potential victims,” Bowles said. “So we’re still continuing to help people get in contact with him.”

He has been told that all but a few cars have been returned to their owners, Bowles said. But there has been some questions about whether cars that were on the lot on consignment had been signed over to YAC, so there was an extensive effort to determine which cars belonged to whom.

A look at the consignment form sellers sign revealed there’s no act of signing over a title or rights to YAC.

The police have to look at the physical evidence available in a case, Bowles said.

A police officer was called out that morning, requested by Henry, to check the premises before he left, Bowles said. This is a common practice to ensure owners don’t try to pin damage on a repossessor, he said. And there was no physical evidence of forced entry at that time.

In addition, Bowles said, a look at the contract involved reveals that Express Auto has the authority to take assets if balances are unpaid.

“Can keys be considered an asset?” Bowles said.

He dismissed the idea that the police aren’t getting involved because of the parties involved.

“I was told when I took this job that I could arrest anyone who has committed a crime – it doesn’t matter if that means arresting the mayor, city council members, law officers,” he said. “Otherwise, I wouldn’t have taken this oath. My department knows that if you do the crime you do the time.”

But while there appears to be some bad business practices and some tricky situations in the mix, for now, there has been no determination that a crime has been committed, he said.

Bowles said that he, too, has not seen a case like this in 20 years.

He encouraged any individuals who have not received their car and who believe it to be stolen to file a report with the police department, and he said that it’s now just a matter of waiting to see what happens.

District attorney

District Attorney Kirk Andrus said his office has taken on the role of mediator in this case.

“There may be a criminal case some day, but knowing whose vehicles these are is a prerequisite to a criminal investigation,” Andrus said.

He said several people have come forward with proof of ownership for their vehicle and there has been an effort to return those vehicles.

Any vehicles that have not already been returned, Andrus said, are expected to be returned this week.

And to this point, the case is civil, Andrus said, because of intent.

“When you talk about criminal intent, if a person did something because they felt legally entitled to, it’s not a crime,” he said. “They might be wrong, and in that case it would be up to a civil court to determine who’s right and wrong. But it’s not a criminal matter when someone truly believes they are right. ... It does have to be reasonable, though.”

Andrus said he has no indication that YPD is not taking reports or is not getting involved when they should be.

“I have not noticed any amount of prejudging who is right and who is wrong or the police giving the benefit of the doubt to anybody,” he said. “People can feel confident that the Yreka Police Department has handled this the best they can.”

His department has not ruled out the possibility of a crime having been committed, Andrus said.

“What we’re doing right now is trying to solve problems and make people’s lives easier,” he said. “This dispute has interrupted people’s personal and business lives.”

Customer

One resident whose life has been affected is Mike Harris, who said his daughter’s car was on the lot for repairs when the cars were taken.

As of Thursday afternoon, he had not received the car and he had not been able to file a stolen vehicle report, he told the Daily News.

His finance company had called and told him he would have the car last week, Harris said. When he didn’t get it back, he said he talked to Henry, whom he said told him he didn’t know where his car is.

Andrus said his records indicate there are issues with that car, but there was no record of contact from Harris.

Andrus added that the promised return of cars is an important event in this case. Once that is done, or is not done, more will be known about how to proceed.



Copyright 2010 Siskiyou Daily News. Some rights reserved

Wednesday, August 18, 2010

http://www.cutimes.com/News/2010/8/Pages/NCUA-Warns-CUs-About-Perils-of-Indirect-Lending.aspx

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NCUA Warns CUs About Perils of Indirect Lending 8/18/2010



By David Morrison

The NCUA wants credit unions to exercise significant care when making loans in partnership with third party vendors or organizations.

“NCUA examiners are reviewing Call Reports for increasing amounts of repossessed autos or increasing indirect lending delinquency and loan losses,” the agency wrote in an August letter to credit unions on the topic. “In addition to those obvious danger signs, examiners are also looking for other warning signs or red flags that may require a credit union to slow down indirect lending.”



Some of the red flags include having a high concentration of indirect loans to total loans or net worth without adequate controls in place; tying loan officer bonuses to indirect loan volume incentive programs and not performing adequate analysis of overall indirect loan portfolio performance.



“Credit unions should regularly test for compliance with the contract terms by comparing delinquency, loan losses, and rates of return to previous results and budget levels,” the agency instructed. “These statistics and those from the static loan pool analysis should be compiled for each vendor and the overall program. Credit unions should implement changes based on the analysis of the program and individual vendors participating in the program,” the NCUA added.

The NCUA wants credit unions to exercise significant care when making loans in partnership with third party vendors or organizations.

“NCUA examiners are reviewing Call Reports for increasing amounts of repossessed autos or increasing indirect lending delinquency and loan losses,” the agency wrote in an August letter to credit unions on the topic. “In addition to those obvious danger signs, examiners are also looking for other warning signs or red flags that may require a credit union to slow down indirect lending.”



Some of the red flags include having a high concentration of indirect loans to total loans or net worth without adequate controls in place; tying loan officer bonuses to indirect loan volume incentive programs and not performing adequate analysis of overall indirect loan portfolio performance.



“Credit unions should regularly test for compliance with the contract terms by comparing delinquency, loan losses, and rates of return to previous results and budget levels,” the agency instructed. “These statistics and those from the static loan pool analysis should be compiled for each vendor and the overall program. Credit unions should implement changes based on the analysis of the program and individual vendors participating in the program,” the NCUA added.

Tuesday, August 17, 2010

http://www.sltrib.com/sltrib/money/50125049-79/loans-auto-credit-loan.html.csp

Consumers loans harder to come by, except those for autos


By LESLEY MITCHELL



The Salt Lake Tribune



Updated 1 hour ago Updated Aug 17, 2010 04:38PM

It’s more difficult — impossible for some — to get a home loan or refinance these days. Ditto for credit cards. And small business loans? Don’t even consider applying for one unless you have a financial house in order.



But auto loans? Not so much. Bad credit, bad credit — it seems like most people these days are still able to finance the purchase of an automobile.



“It’s amazing just how the auto loan industry has relaxed their lending standards, even in just the last 90 days,” said Al Bingham, the Utah author of The Road to 850,” a book about the nation’s credit scoring system.



The goal, of course, is to move cars off lots at a time when many consumers can’t — or don’t want to — make a major purchase.



That’s why General Motors recently agreed to purchase AmeriCredit, a provider of subprime loans made to borrowers with less than perfect credit. Analysts say the acquisition could boost the automaker’s sales by 10 percent to 20 percent a year by giving the carmaker broader control over auto-loan approvals, especially to those with less than good credit.



So why has subprime car lending continued long after subprime home loans have virtually disappeared amid the housing crisis?



For starters, auto loans to those with less than perfect credit don’t carry the risk to lenders than high-risk mortgages do. Customers pay exorbitant interest rates — in some cases pushing 30 percent — and cars can be repossessed fairly quickly and easily if borrowers stop paying. Seizing a home is a much more time-consuming and expensive process.



And many borrowers remain highly committed to their car loans and will stop paying on their credit cards and other debts — even on their mortgages — before they stop paying the loan that gives them a way to get to work or anywhere else the need to go.



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Updated Aug 17, 2010 06:19:35AM 0 Comments

But there are signs of trouble in the auto lending industry. Auto loan defaults rose sharply in July by 16 percent from June, according to a report released last week by Standard & Poor’s and credit-reporting company Experian.



While mortgage loan and credit card default rates fell slightly, rates for second mortgages and auto loans rose. The default rate on auto loans in particular increased to 1.9 percent in July from 1.6 percent in June, reversing six months of declines.



“It may be an early warning sign, “ said David M. Blitzer, a Managing Director at Standard & Poor’s.



The problem for many car dealers right now, Bingham said, is that the people who can truly afford to buy a car right now don’t want to buy. Many people are holding on to cars longer and delaying vehicle purchases.



But there are a number of borrowers who need a car or want to buy one even if they aren’t in good shape financially.



Since the economy has tanked, the federal government has been pushing incentives for consumers to buy homes, cars and other items — and encouraging financial services companies to lend — in an effort to stimulate the economy.



But credit experts like Bingham aren’t sure that subprime auto loan ultimately are good for consumers — or the economy as a whole. “Is a 20 percent interest rate going to help someone, or make their financial situation worse?” he asks. Plus, a rash of auto-loan defaults down the line could hinder the nation’s economic recovery.



But Craig Bickmore of the New Car Dealers of Utah said it’s important to note that the car-loan industry didn’t bring on the financial crisis and that default rates on vehicle loans overall are much lower than default rates on other types of loans.

http://www.glendalenewspress.com/news/tn-gnp-autos-20100818,0,2410783.story

Car dealers hanging on to improved sales figures



If anyone is pleased with the lukewarm national retail sales figures for July, it is probably auto dealers.




Car sales represent the brightest spot in the Department of Commerce figures released Aug. 13, which overall showed a 0.4% gain in retail and food spending over the previous month. But auto sales were up nearly 9% from July 2009 and 1.7% from June.



"It is better news," said Jeanne Brewer, owner of Acura of Glendale. "We're seeing a little increase over what we were doing last year. The good news is we're also starting to see a few more people out into the marketplace, making decisions to repair their vehicles."



At Star Auto Group on Brand Boulevard, sales of Mazdas were up 67% compared to the same period last year. Sales at the group's Ford unit were up at least 21%, said owner Steve Bussjaeger.



"We are selling more cars and trucks, no question," he said.



Buyers remain mileage-conscious, with makes such as the Ford Fusion and Focus leading the charge, he added.



But Bussjaeger saw reasons for caution, as well.



The relatively large increases in sales mask what was "a very deep low" last year.



"The auto sector probably got hit harder and were down further than everybody, so it doesn't surprise me that we are up," he said.



The Brand Boulevard of Cars is an especially important source of sales tax revenue for the city, so any recovery there would impact city coffers.



The uptick in sales was stronger earlier in 2010, with sales flattening out in summer. The Department of Commerce statistics show car sales up overall in July compared to June, but that was after a slowdown compared to May.



Comparisons to last year will grow tougher next month, when the federal cash-for-clunkers program was at full throttle.



Brewer and Bussjaeger said the business continues to experience a hangover from the credit crunch, with some car buyers returning autos to the lots to be repossessed by lenders.



"That never used to happen at all until about a year-and-a-half ago," Brewer said. "



Still, bright spots in the entertainment and film production industries in terms of job recovery has had a noticeable effect on business, she added.



"Fifty percent of our business comes from people in the entertainment industry, which creates a lot of jobs in our area," Brewer said. "A few more projects getting funded, and we're starting to see that population come back into the dealership, which has really been terrific."

Monday, August 9, 2010

http://newsblaze.com/story/20100807152043j112.nb/topstory.html

A Personal Tale of Murder, Depression and Deprivation in Flint, MI



diggBy John Danz Jr







Somehow, I'm still surprised to see Flint, MI in the headlines.



I moved away from my hometown of Flint just two months ago. It was the best move I ever made in my life. My mom decided to move back to Flint from Texas after three years because she missed her family and hated the fertile, full of opportunity economy of Texas. Trouble is, Flint is an abysmal cesspool financially and socially. She didn't think, and now she wonders how she'll get by without a job from week to week. I can't say I didn't warn her.



Let me put the job market of Flint in perspective for you in a personal manner: In eight months in Flint, my mom had one temporary job for three weeks. I never came close to finding a job. However, within ONE WEEK in my new hometown, I had two job interviews and a job. Call it chance, but I think that speaks volumes for not only Flint's depraved atmosphere, but my mom's foolishness.



Enough insipid tales about my life.



Thirteen stabbings and five deaths later, Flint has made CNN headlines again for its bleak, murderous stigma. To put this in non-boring mass media news terms, an idiot in Flint is acting like he's in distress, only to shank the Good Samaritans that attempt to help him.







What was once 235 acres of prosperity for Flint is now a barren wasteland.







I must say, this is more entertaining than the usual gang shootings. Hearing gunfire every other night for six years got boring, after all. One time, these Emmy award winners decided to entertain me in the neighbor's yard. Soon after, my dad soaked the house in gasoline, threw a match and swept us to a more docile city.



Yeah, I thought I was done talking about my own life, too.



Thirteen stabbings and five deaths later, Flint once again asserts itself as one of the worst places to live and the loud, proud anus of the state of Michigan. All that seems to be left of Flint are the scars in the Earth where automotive factories used to proudly roll out fresh new cars. My mom, grandfathers, grandmother on one side, aunt, uncle and father all made a living through General Motors and Delphi. My grandfather was once vice president for the Chrysler division of UAW. Today, all they have to show for their work are the ashes of the useless certificates they got for their 10-20 years of service resting comfortably in their respective fireplaces. They're still there, because their repossessed houses haven't been sold yet. That explains all of the boarded-up houses on the block I grew up on.



Nope, not done yet. Don't worry - my mom bought a repossessed house with the meager restitution she was given to quit GM. We found a former Fannie Mae executive living in the basement living off of the crumbs of a more prosperous yesteryear. Bitter crumbs, they are.



Thirteen stabbings and five deaths later, Flint now has the attention it needs from the media. Now, everyone can be reminded of how much of a fecal smear Flint has become. A fecal smear of which is becoming less and less conspicuous on the map by the year - but just as smelly. Good news, because it's the only media attention Flint will get until another second grader takes his mom's gun to school and shoots it up.



I finally understood how bad Flint was when I heard a friend of mine was starting a bullet casing collection - from his front yard. When I returned, I saw roaches and rats vacating the city with their belongings on their backs. Now-homeless retirees of GM return to the remains of the once-bustling GM plant to make-believe the tasks that once gave them and their children a future. If walls could talk, there would be a cacophony of screams permeating the dead air from the likes of crack houses, meth labs, condemned shacks and soon-to-be-demolished buildings.



Perhaps you read about the stabbings in Flint on CNN and it was your first time being exposed to the city of Flint. Hell of a first impression! Perhaps you said to yourself "Well, all of Michigan is screwed beyond belief thanks to the collapse of GM and the rest of the automakers." I defy you to take a twenty-year walk back in time and find a city in this state that has filled the toilet full of feces and traveled down the pipes into the deepest, darkest realm of the sewer faster than Flint. Detroit? Sure, but it's a big city. That's not fun, nor is it entertaining. They still have the Red Wings and Eminem. I doubt you'll see any of the few famous faces to come out of Flint "reppin'" any time soon.



Perhaps, like me, you call or once called Flint home and feel the same way I do, and wonder if things will ever change. I mean, come on, even Hiroshima was able to be rebuilt after they were decimated with an atomic bomb. The radiation killed off thousands over time, but at least they had pretty buildings! Flint needs more than simple restoration and urban development - it needs an extreme makeover that would make Ty Pennington run screaming. It needs a complete overhaul financially with competent leaders and minds who can set up the rebuilding process.



This just in - Flint and Michigan is essentially broke. Well, so much for that idea!



Then again, speaking of money, Flint could use what Kalamazoo got - a bunch of billionaires giving millions of dollars towards guaranteed scholarships to schools thanks to their lazy, unmotivated students adding up to a massive dropout rate. It was dubbed "The Kalamazoo Promise." Would Flint have too much pride to accept such a gift? Who knows.



I finally digress.



Thirteen stabbings and five deaths later, Flint still needs help. And thirteen stabbings and five deaths later, Flint still won't get the help it needs. Which means, that's thirteen stabbings and five deaths I'll just experience somewhere else in this depressing, depraved state.

Wednesday, July 7, 2010

http://www.wdio.com/article/stories/S1642274.shtml?cat=10359

Car Shoppers Beware of Online Scam


Posted at: 07/07/2010 4:48 PM







The Better Business Bureau of Minnesota and North Dakota (BBB) is warning car shoppers to beware of websites offering too-good-to-be-true deals on repossessed cars. According to a news release, the BBB says they heard from people across the country who thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships.



The release says a fraudulent website claimed to sell repossessed cars at prices well below market. Buyers were instructed to wire a deposit—as much as $5,000—to an individual rather than the company, which, according to the phony website, “helps us avoid taxes legally.” The balance was to be paid upon delivery at the consumer’s address within five days.





After paying the deposit, victims called the real dealership to arrange delivery of their car. Some customers even showed up at the lot to pick up the cars they had “bought” on the bogus site.





Car shoppers should look for the following red flags when shopping for a car online: Prices that are too good to be true. The dealer only communicates through chat or e-mail—never by phone. The dealer only accepts payment by money wire transfer.





The BBB would like you to notify them if you have been the victim of a fraudulent auto dealer online, log on to www.bbb.org and the Internet Crime Center at www.ic3.gov to file a complaint.





The mission of the Better Business Bureau is to promote, through self-regulation, the highest standards of business ethics and conduct; and to instill public confidence in responsible businesses through programs of education and action that inform, protect and assist the general public. Our hours of operation are 8 a.m. to 5 p.m. Monday through Friday. Contact the BBB at www.bbb.org or 651-699-1111, toll-free at 1-800-646-6222.

Thursday, April 8, 2010

http://www.dallasnews.com/sharedcontent/dws/news/localnews/crime/stories/DN-repomanbox_08met.ART0.State.Edition2.4ce25d0.html#slcgm_comments_anchor



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Economy depresses repo business

12:00 AM CDT on Thursday, April 8, 2010
Nationwide, about 1.5 million vehicles are repossessed annually. But the economy has taken a toll.
"We're picking up less cars, and a lot of that is because the dealerships are not selling the cars," said Mark Summs, president of Summs Skip and Collection service in Virginia and president of National Finance Adjusters, a trade association. "The repossession business is based on selling cars and a having a good portion of those loans going bad. So if they're selling a whole lot less, then there's less possibility of it being repossessed."
• Repossessions can occur any time on any day.
• In most cases, no physical force or threats can be used. This includes breaking into a garage.
• A vehicle can usually be repossessed from private property.
• Lenders are not obligated to grant borrowers a grace period
• Like most states – California, Florida and South Carolina are exceptions – Texas does not license recovery agents or regulate the repo industry. Although there are rules regarding the overall towing business, anyone with a working tow truck could hold act as a repo agent.
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