2007-06-27 14:08:32 · 6 answers · asked by christie m 1 in Business & Finance ➔ Personal Finance
You still owe money. If they sold the car at auction and the sales price didn't cover the loan value - you owe the difference.
2007-06-27 14:16:04 · answer #1 · answered by pepper 7 · 2⤊ 0⤋
Good question...
First, I'd like to write about what you can do before repossession. Because... afterwards you might have to hire an exorcist. A joke. Sorry.
One of my favorite links is about a lady fighting cancer
and how she got advice on avoiding the repo.
http://www.bendover.com/askbenquestion.asp?faq=3&fldAuto=702&chapter_fldAuto=63
Another way is to find someone to pay part of the loan.
Then you get an unsecured loan to cover the remaining balance. Example:
You owe $9000, the car is worth $6500 retail at best.
You find someone willing to pay $5500.
Ok. $9000-$5500= $3500.
You ask the bank for an unsecured loan for $3500
and get them to accept the $5500 and release the
title to the new owner.
Now you owe $3500 on an unsecured loan.
You're still paying the bank.
That's all they really care about, anyway.
---After repo---
Depends. There's a book called, How to
Get out of Debt, Stay out of Debt, and live Prosperously
by Jerrold Mundis
It will give you some answers.
Just remember... you're not living for your creditors.
You owe them money, not your life. That's a quote.
Best
Robert
2007-06-27 15:32:54 · answer #2 · answered by 1090 4 · 0⤊ 0⤋
You owe the money, it will destroy your credit as long as it's unpaid, and even beyond the standard 7 year period the collection agency will/can sell the collection to another agency and it starts all over. You have to DEAL with it, you don't have to pay the entire amount owed, but they will accept a lower amount. If you can get it on to a credit card, at a discounted cost, it's probably worth it to move on and get this off of your credit history. Don't forget that you DO owe the money, the repo did NOT absolve you of the debt.
2007-06-27 14:22:31 · answer #3 · answered by The Scorpion 6 · 1⤊ 0⤋
Frankly, my dear, you have no leg upon which to stand here. If you owed $10,000 on the car and they repossessed it and sold it for what they could get ($5,000 as an example) you still owe the difference of $5000, plus any expenses they incurred in repossessing the car (towing, storage, etc.)
They can and WILL go to court to obtain a judgment for this deficient amount, and will probably garnish your wages, as well as attempt to legally 'attach' anything else you own of value.
NOW you know why it's not good to have a car repossessed.
2007-06-27 14:23:47 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
You owe the money. They will send you to a collections company, report the default to the credit agencies, the collection agencies will also report to credit agencies, wrecking your credit. If the amount that you owe is a significant amount, they may sue you and a judge will require that you pay (or he will garnish your wages, which means they will take money out of your paycheck.)
2007-06-27 14:22:47 · answer #5 · answered by warmwardbound 3 · 0⤊ 0⤋
nothing, next time pay your bill on time and this wont happen dur.
2007-06-27 14:10:34 · answer #6 · answered by vinniedelmar 1 · 1⤊ 1⤋