Can I maintain a bank loan for a vehicle that is destroyed w/ no insurance? February 13, 2010
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Horribly enough, my husband attempted suicide in his truck and the truck burned up and he received horrible burns in the process. If that isn’t enough to deal w/ the police said that if we file an insurance claim for the 1.5 y/o truck that they will prosecute him for arson and insurance fraud. So, I have a loan for 3.5 more years. If we maintain possession of the truck and continue to insure it, can the bank call in the loan if they find out? I changed the insurance to storage insurance only which is legal. I don’t know if I should come clean w/ the bank and try to get them to refinance it as a signature loan, or if I should just keep quiet. I don’t have the $24,000 that is owed on it, and don’t have that much equity in my home. I have 2 kids, and can not lose my house. Does anybody have any knowledge on where I stand w/ the bank? We have a very good relationship w/ our bank and we hate to lose it and not have them help us in the future. So don’t want to screw them over.Submited by:Trouble