i recently heard that the government will step in and recover some of the money you have put into your auto in case of re-po. don't know if this is true but really need an answer. my car was towed while i was in the hospital having total hip replacement surgery. couldn't work before surgery due to excruciating pain upon walking so couldn't pay for car. i called the place that repoed it and they will not tell me where it is. i have personal things in the car that i am sure i will never recover. i am 72 years of age and need a car to go to work as soon as i totally recover from my surgery. i hope someone out there knows something about the gov't helping me to recover some of the payments i had put in the auto.
2007-08-04 04:24:16 · 3 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Yes, they can. See, when your insurance gets cancelled, they put "forced placement" coverage on your car - at a cost of about 5X what your regular insurance is. Then, in accordance with the terms of your loan, they bill you for it. When you mail your payment in, it goes towards the forced placement coverage, and if there's any left over, then it goes to the actual car payment. So either you pay an extra $500 a month for insurance, or the loan goes into default, pretty quickly. It will usually be repo'd in 2-3 months.
2016-05-17 23:34:27 · answer #1 · answered by ? 3 · 0⤊ 0⤋
What the government does is regulate what happens after the repossession. They have to give you the opportunity to clear the debt and retake possession, and if you do not, they are allowed to sell the car. The sale must be "commercially reasonable", but does not necessarily have to be by auction. If the sale brings less than the amount owed, you still owe the difference. If it brings more, they have to pay you the overage.
The government doesn't put any money into the deal.
2007-08-04 04:56:27 · answer #2 · answered by open4one 7 · 0⤊ 0⤋
false
you needed to be in contact with the lender on the car before you went into the hospital about the missed payments.
i doubt you'll get any help from anyone now, other than the "buy here, pay here" guys down at friendly Mike's Used Cars.
This is when you'll need your network of family and friends.
GL
2007-08-04 04:28:34 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋