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Thank You Toyota Financing?

I’m quick to discount the honesty and integrity of loan companies. OK, let me put that in more accurate terms…

I think loan companies are as trustworthy as criminals.

But, I will fully admit when I am pleasantly surprised by lenders (it doesn’t happen often).

I sent the most recent truck payment and was a bit angry when I received my payment coupon a few days later. The coupon noted my next payment due date – late summer of 2011. I distinctly noted ‘PLEASE APPLY THE EXTRA PAYMENT AMOUNT TOWARD PRINCIPAL. DO NOT ADVANCE PAYMENT’ on the payment coupon I mailed with my check.

I e-mailed Toyota financing and asked them to explain how payments were applied and, if I my payment was improperly credited, to remedy the situation immediately.

Within 24 hours of my initial e-mail, Toyota responded, “Thank you for contacting Toyota Financial Services. Interest is calculated on your loan using the simple interest method. This means that any funds received in excess of the amount scheduled are automatically applied to the principal loan balance.

Any payment in excess of the standard monthly payment, given that there are no late or miscellaneous charges on your account, is applied to the principal balance of your loan. As a result of our billing method, the subsequent billing statement will show that your account is paid ahead. The net result with your type of loan is that extra funds are applied to principal.

For verification, we will mail an account history to the address listed on your account. This will provide a list of all payments received as well as a breakdown of principal and interest for each payment.”

The day after I received the Toyota e-mail, I received the financial breakdown in my mailbox.

I won’t ever get another car loan but I was impressed at the level of response from an auto lender and can’t help but wish…

My home loan could be financed through Toyota.

Do you think they would finance me if I said it wasn’t a house but a several hundred thousand dollar Toyota Sequoia?

Oh, and about the whole principle vs. principal debate brought up in the earlier post, it made me feel better when Toyota wrote ‘principal’ in their response and Wells Fargo also addresses it as ‘principal’. Frankly, I don’t know which is which. ; )

Posted by Beks on July 13, 2010 at 5:00 AM in Loans | 15 Comments »
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Making Home Affordable Tips…

I learned a lot about the Making Home Affordable/Home Affordable Modification Program (HAMP) in my 2 hour call with Bank of America.

1 – If you are hoping for a huge change… this is not the answer. Not all changes are permanent and/or large. Some adjustments may last as little as 3 months.

2 – Loan modifications are not quick. If you can’t wait the standard 9 weeks for the review of your file and another 5-9 weeks for paperwork processing, you don’t have enough time and you may want to move forward with other options like a short sale or foreclosure.

3 – Give an accurate listing of all your expenses. Don’t exaggerate but don’t minimize either. Have a good understanding of exactly how much you are paying. Keep this information available for when you call the bank.

4 – You will be rejected if you have recently made large purchases or if your credit score is low. You shouldn’t be making large purchases anyway so I can’t say as if I blame the banks for this stipulation.

5 – If you have a second mortgage with another lender, they will likely require you to get approved for the Making Home Affordable Program on your first loan before they will consider a change to your second mortgage. If you are accepted for the program on your first loan, it’s easy to submit the same paperwork for your second mortgage.

6 – This should not be your only option. It’s worth a try, but don’t fool yourself into thinking this will solve your problems.

7 – If your home is not a Fannie Mae/Freddie Mac mortgage, this program does not apply to you… BUT some lenders are still willing to modify other types of loans.

8 – This is a voluntary program. No one HAS to help you. Sure it’s good business sense to lessen foreclosures on the banks part, but if you are a problem child, don’t expect any help. Banks don’t want to keep you as a customer anyway. Be kind, courteous, and polite even if you are frustrated.

According to the bank’s calculations, my husband and I qualify. We are now in the first 9 week waiting period while they review our files. We have stellar credit scores and we haven’t made large purchases in a long time. We are good candidates for an interest rate reduction from the over 7% it is currently, down to the market rates of 5-6%.

Do I really think it will really happen?

No. But it’s worth a try.

Posted by Beks on October 23, 2009 at 5:00 AM in Credit Reports/FICO, Debt Updates, General Debt, General Personal Finance, Good Info, Home Ownership, Loans, Making Home Affordable Program | 13 Comments »
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Dealing with Making Home Affordable…

I am throwing the white flag…

and applying for the Making Home Affordable program.

Yesterday, I left work early and made THE call. My call started at 5:07 p.m. and ended at 5:57 p.m.

I called the Making Home Affordable number on my Bank of America mortgage website and waited 17 minutes on hold. Someone answered and transferred my call since my mortgage used to be a Countrywide mortgage and they had a separate division.

I’m fairly certain they routed my call around the world because really, what else can explain the 24 minute hold time and the gentleman who sounded like had lunch in Bangladesh. He asked for my name, account number, checked my account, thanked me for paying on time, and told me I would be transferred yet again to a representative. 9 minutes later, a message said, ‘Our office is now closed. Please call back another time.’

I would give you advice on dealing with the Making Home Affordable program but since I didn’t talk to anyone, I will tell you this… you need more than an hour.

Dear Bank of America… I had far better things to do than spend 50 minutes of my life listening to Kenny G. and the recorded reminder that someone will be with me shortly. Obviously you and I have VERY different definitions of ‘shortly’ AND, I had to drink three glasses of Chianti just to keep my ears from bleeding.
Ugh. Kenny G.

I’ll let you know how it goes… if I ever get through.

Posted by Beks on October 15, 2009 at 5:00 AM in Confessions, General Debt, Home Ownership, Loans, Making Home Affordable Program | 25 Comments »
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Sliding Backwards into Credit Card Debt Again…

Our credit card WAS paid off. Obvious emphasis on the past tense.

My husband is attending a bachelor party this weekend and the event required one credit card to book the trip for all five attendees (the bill could not be split). Most of our friends know about our recent credit card payoff (maybe shouting that fact from my roof and breaking into song was a clear sign) and naturally suggested that since we ‘had the room’ on our card (as if it were free), that my husband pay for the entire trip and be reimbursed later.

I’m not going to lie. I am upset.

Perhaps I’d be more trusting if this hadn’t happened before with concert and event tickets and in the end, we were always short. People conveniently ‘forget’ to pay or promise to pay later and then get annoyed when reminded. Plus, the credit card will be kept on file in case there are damages to the room or if alcohol is consumed.

When I asked why someone else couldn’t pony up a credit card, he told me it was because everyone is nearly maxed out but us. Um… isn’t that a good reason NOT to loan these people our credit card?

My husband and I rarely fight but this is a sensitive issue for me and I feel like we are opening ourselves up to a lot of potential debt.

Am I overreacting?

Posted by Beks on September 11, 2009 at 5:00 AM in Confessions, Credit Cards, Debt Updates, Life Experiences, Loans, Money & Relationships, Spending Money | 42 Comments »
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Info from a savvy reader…

Last week, I talked about our next debt payment step and how we intend to pay off the truck loan rather than the student loan even though the student loan has a lower balance. Dave Ramsey suggests paying lower balances first but I decided to rid myself of the high truck payment instead just in case job loss is in our future.

Ann, a brilliant reader, also pointed out that if I paid off my student loan first, I would lose my tax deduction.

As someone who gets WAY too much joy from writing off the student loan interest, I am grateful to Ann for reminding me of this fact.

I’m sure a lot of you have student loans and this should be a consideration in your debt payment plan.

Thanks Ann!

Posted by Beks on September 9, 2009 at 10:38 PM in General Personal Finance, Good Info, Loans | 7 Comments »
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Our next step…

Now that our credit card debt is gone, a reader asked what our next step is going to be.

Dave Ramsey suggests paying the extra amount on your lowest debt (which would be the student loan) but the minimum payment on our truck is more 4 times higher than the student loan. Plus, the interest rate on the truck is twice as much.

Another good reason to pay more on the truck is to quickly rid ourselves of the hefty payment. In the event of job loss, a student loan can be deferred due to financial hardship – auto loans are not nearly as forgiving.

We’re hoping to have the truck paid off in 10 months or less.

Here we go!

Posted by Beks on September 3, 2009 at 5:00 AM in Credit Cards, Debt Updates, General Debt, General Personal Finance, Loans, Reducing Debt | 21 Comments »
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