insurance fraud is a FELONY
old john

Hello, don!
You wrote on Fri, 13 Jun 2008 01:14:43 -0500:

d> Do you think that he could buy a used car for around $8000 and have the
d> dealer make the loan for $10000 so that

d> the remaining balance on his old car loan can be buried/hidden in his
d> hopefully new car loan. This idea is just a thought

d> I had because my friend is really strapped for cash right now and needs
d> a car ASAP. I'm not even sure if this would work

d> or is too far fetched an idea, but I know that sometimes stuff like this
d> happens with house mortgages where loans are written for more than the
d> house is

d> worth.


With best regards, ajeeperman (AT) comcast (DOT) net. E-mail: ajeeperman (AT) comcast (DOT) net

My friend totaled his car and insurance is paying him $8000, but he owes
$10000 on the car loan !

Do you think that he could buy a used car for around $8000 and have the
dealer make the loan for $10000 so that

the remaining balance on his old car loan can be buried/hidden in his
hopefully new car loan. This idea is just a thought

I had because my friend is really strapped for cash right now and needs a
car ASAP. I'm not even sure if this would work

or is too far fetched an idea, but I know that sometimes stuff like this
happens with house mortgages where loans are written for more than the house
is

worth.

Thanks for opinions.

ajeeperman (AT) comcast (DOT) net wrote:
How is there any insurance fraud in this story?

This is routinely done with car sales. Most people tend to be "Upside Down"
with their loan-to-car value ratio. I assume your "friend" plans to trade
in the old car. Assuming this, and that your "Friend" is otherwise credit
worthy, it can and will be done.

John


"Commentator" <commentator (AT) nospam (DOT) com> wrote