Expert: David - 7/15/2009

Question
I have a 2003 Kia Sorento that I still owe about $10,000 on.The engine has "jumped time" and will need a complete new engine to be driven. The vehicle has 103,000 miles on it and I was advised against putting the money (which I don't have since the divorce) to put into it. I have another vehicle which I am driving and was going to trade both in on a new or used vehicle. The drawback is my credit is not good (550) and the Kia is in mine and my ex wifes name. I inquired about getting her name off of it which the divorce decree states that I would retain possession of it but that I would have to refinance it, which they probably are not going to do any way with my score the way it is. I was advised to just let the Kia go back and keep driving the other car. My concern is should I do this since my score is bad and will it greatly affect her score, which I don't want to do, and will they come after me or her for the balance after auction, or do I keep making payments on a vehicle a can't get any use out of? Your help would be appreciated. Thanks

Answer
Lynn,

If the vehicle goes back they will sell it at auction for a low price and subtract that from your loan balance.  The rest will still be owed and they have the legal right to sue you and your wife for payment.

I can help you raise your score if you like but you'll still have to decide what to do about the KIA payment.

David
www.financialscoringsolutions.com