Can a car be repossessed for a judgment lien?

Answer 1

Paul, as long as there is a lien on the car, it CAN be repossessed. It is up to the lender whether they want to repo or not. Some will, some wont. Your lender can seel the loan to another co. at a discount and the new lender could decide to repo. Good Luck

YES THEY CAN...But do they??? It depends.

There are situations when a person buys a brand new car and does not maintain it properly. Or the car begins to wear a couple yeasr into the agreement. There are situations where a person falls behind on payments because of hard times and certainly cant pay a car loan. Also they cant afford the maintainence on the car so the car breaks down bit by bit to the point its barely driveable or looks very little like the brand new car it was several years ago.

The repo people follow this guy and go to repossess the car and they look at it and call the finance company that hired them. The finance company decides they dont want the car...its in such bad shape...they just want the money. Therefore in some instances they choose not to take the car.

That happened to me back in the late 90's. In 1995 I bought a brand new 95 Hyundai Exel with AC, CD, Cassette, Power Windows, Auto Trans, etc for 7500 dollars. I pail 2000 in cash and financed 5500 dollars. My payments were 135 a month for 5 years. I paid on time and sometimes a few weeks late all along. Once I hit 30 days past due and the phone rang 10 times a day it seemed. I paid up.

Then in June of 1998 I lost my full time job. I had a part time job still and could only find another part time job quickly. With 2 part time jobs I was unable to make ends meet. Plus my live in girlfriend who made over 75000 a year broke up with me and moved out after 4 years. So from May till December I made no car payments in 1998. My long distance phone service was disconnected. I was only having to pay 15 a month for local service. I got food stamps and free electric through public assistance and my church. Plus they also helped pay my rent. My credit cards were insured so I did not have that monthly debt but the intrest accrued on them.

I just refused to answer my phone when it rang and Unavailable appeared on my ID. In January I got a new job making the 30000 dollars a year I made at the job I lost. I then contacted Hyundai and they stated the entire 2000 dollar balance was due. I arranged to pay 150 a month till it was paid off.

They then asked if I made repairs to my car. I said NO I did not have money yet. They stated they went to repossess the car but chose not to because of the moderate body damage, bald tires, cracked windshield, broken headlights, and when they followed me to my home they noticed smoke coming out of my muffler and loud noises and failed inspection sticker. They stated for 150 a month they would not repossess the car as long as I kept paying even if I restored the car. I did fix the brakes, muffler, lights, windshield, air conditioner for about 1200 dollars totally a month later. I kept making payments until the loan was paid off in the Fall of 2000. By 2001 they removed the default on my 3 credit reports. In 2002 I bought another Hyundai this time an Elantra for 10000 with 200 dollar monthly payments. So far I have kept them up.

Still in my personal experience they did not repossess the car due to the poor condition it was in. They found that they could get no money for selling it I guess.

Answer 2

If your car was repossessed and there remains a deficiency on your car loan, there is the potential for the lender to obtain a lien on your home. It must sue you in court. If successful, the court will issue a judgment lien that can be recorded in the land records. In that case, you cannot sell or mortgage your home until the lien is paid off. The laws vary according to the jurisdiction.

More on car loans:

When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car.

Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late.

Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying.

Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report.

Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance.

But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace.

Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property.

A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation.

Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold.

In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale).

In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession.

The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable.

Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing.

In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract.

Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense.

If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

Answer 3

If it's the owner of your car loan and you defaulted then the car can be repossessed. If you have a judgment against you for any other debt then yes, if you own a car it may be seized by your creditor to cover the cost of your debt.

Answer 4

If a lien is placed on real property can your car be reposessed? In: http://wiki.answers.com/Q/FAQ/2518-39 [Edit categories]

Answer 5

In that case there would be no one with the right of repossession.

Answer 6

Yes.