Our vehicle was repossessed. The loan company sold the vehicle
and now they say we are responsible for the balance of the loan.
Is this legal?
2007-02-09 09:51:19 · 17 answers · asked by Christina B 1 in Business & Finance ➔ Renting & Real Estate
Yes, they can. The amount you borrowed for the car is now quite a bit more than the car's worth. You owe the balance, plus the late fees for the payments you missed, and you will continue to rack those up if you don't make the payments.
2007-02-09 09:57:02 · answer #1 · answered by trai 7 · 1⤊ 0⤋
each and every new purchase is a clean own loan, with each and all the alternatives open to the lender. in the experience that your credit has long previous down, dramatically, given which you first have been given the non-public loan, then you rather won't be waiting to get a clean own loan and/or the expenditures of interest they (or the different lender) could quote you are able to properly be lots larger. authentic regulation seems to omit the element that nonetheless you may get the money - lots extra probably, nearly all of the settlement will bypass to the holder of the observe, to no longer you - you may nevertheless have the relax debt on the non-public loan. If what you get from the coverage business enterprise pays better than what you owe, you are able to desire to word the version on a exchange motor vehicle, or as a down fee on a clean own loan for a replacemeent. yet you won't be in a position to have the two the money and a paid-off own loan.
2016-11-03 00:31:01 · answer #2 · answered by ridinger 4 · 0⤊ 0⤋
Yes, they can repossess and require you to pay the balance of the loan. But -- there is more to this answer.
Most loan companies realize that their chances of collecting the balance of the loan are slim. Knowing that, they will be highly motivated to work with you on some kind of repayment arrangements. Two options:
(1) If you can afford ANY kind of monthly repayment plan for the remaining loan balance, they may work with you. For instance, you could offer $50 a month.
(2) Or, you can offer to settle the full balance for a lump sum, for pennies on the dollar. In other words, if the difference owed is $2,000, you might offer to settle for $500. Use an income tax refund if you have one coming, to come up with the lump sum.
If you simply have no money whatsoever to pay the loan balance, and they start garnishing wages or taking other negative action, then filing bankruptcy may be the most practical way out.
Good luck.
2007-02-09 10:30:28 · answer #3 · answered by Anita C 1 · 0⤊ 0⤋
uhhh yeah, you signed a contract, that contract is still going, even with a repo.
You owe $10,000....its repo'd or you give it back. They sell it at auction (they don't care to get top dollar, not their concern, they just want it gone as they are not a car lot, but a bank). Say they get $6,000 at auction. You know own them $4,000 instantly. Not payments, not another loan, instantly. And that is the law.
The repo alone has now destroyed your credit for at least the next 10 years, not 7 like most think. You will only be at buy here pay here lots paying 3 times the price of a piece of junk. And this extra money owed will also go on there as money not paid and no one else will give you a stitch of credit as long as that is on there...
And with all this, once your other credit cards or what not get a wiff of all this on your report, don't be surprised if they cancel you on the spot as they will now deem you as super high risk.
Smartest move would of been to make the payments, even 1/2 payments is better than nothing or just sold the car off yourself.
Cause you think it was tight before.....its past tight now.
2007-02-09 09:57:00 · answer #4 · answered by Anonymous · 2⤊ 0⤋
WAIT! :-)
This happened to my friend last year.
Just saying YES is incorrect, well incomplete.
The answer is "it depends" and especially note: if they repossess it and sell it, in most jurisdictions they have to DEDUCT THE DIFFERENCE FROM WHAT YOU OWE. Of course if there is more than one (Honda, Honda finance, Citibank, etc) you may to negotiate a three party deal but you are entitled to do so.
"If your car is repossessed, you can get it back by paying the entire loan balance and the cost of repossession or, in some cases, by paying the cost of the repossession and the missed payments, and then continuing to make payments under your contract. If you don't get the car back, the lender will sell it at an auction almost always for far less than it's worth. In most cases, you'll owe the lender the difference between the balance of your loan and what the sale brings in."
http://bankruptcy.findlaw.com/bankruptcy/debt-relief-options/repayment-faq.html
Of course check with your jurisdiction.
If California, try NOLO, they are excellent.
http://www.nolo.com/
Good luck!
2007-02-09 10:02:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Sorry, but you still owe for the vehicle and if you don't pay for it, the loan company can garnish your wages or put a lein against some of you other property. The only way you can get out paying for the vehicle is filing bankruptcy.
2007-02-09 10:01:50 · answer #6 · answered by ? 5 · 2⤊ 0⤋
Absolutely. When they reposess they resale the vehicle. The difference from what you owed and what they get is still your balance due. If you don't pay, it will go to court. The court will decide what balance you must pay. Beware, don't miss your court appointment, because they will sock it to you and collect from your employer. If you do show up, chances are the court will take into consideration why you didn't/couldn't pay for the vehicle and may reduce your balance, or do away with it.
2007-02-09 09:56:02 · answer #7 · answered by cowboys21angel 4 · 1⤊ 0⤋
Yes. They mitigated their damages by selling the car. Fact of the matter is, they paid the company you bought the car from, you defaulted on the loan, they sold it for what they could get, and now you owe the balance.
Sorry, but it's just the way the law works.
2007-02-09 09:55:01 · answer #8 · answered by deerslyr_71 3 · 2⤊ 0⤋
Yes they can. My husband and I had a car repoed when he lost his job after 9/11 and we owed $17,000 and they only got $7,000 when they auctioned it so we still owed them $10,000 that we are still paying on, and until it is paid off we cannot get a loan for a newer car, even though he has a job making more money than he did at his last job.
2007-02-09 10:27:28 · answer #9 · answered by Ryan's mom 7 · 0⤊ 0⤋
Yes they can.This is happening to me as I speak.Pay these people 50.00 bucks a month or else you will be getting garnished just like me.They take more out of my pay check then I was paying on the car in the first place.Pay Up,Pay Up,Pay Up.Call them and work out a payment quickly because once that lawyer gets it.It's over.
2007-02-10 05:36:30 · answer #10 · answered by spice 1 · 0⤊ 0⤋