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Can a creditor recover any deficit that results from the voluntary repossession of a vehicle if the borrower has no assets or property?
Wiki User
∙ 17y ago
Yes. If the borrower is employed the lender can file a lawsuit and be awarded a judgment which can be executed as a wage garnishment. Even if the borrower does not have seizable income, assets or property at the time the judgment is awarded the lender can hold the judgment. Judgments can be from 5-20 years duration and most are renewable. That means it is highly likely that at some future time the debtor will be employed or have assets or property that can be attached.
Wiki User
∙ 17y ago
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What are the laws in Michigan on manufactured home repossession?
If a borrower defaults on loan payments for a manufactured home in Michigan, the creditor can take the manufactured home. If the manufactured home is real property the repossession and foreclosure is on the manufactured home alone. If the home is being used for residential purposes, the home is repossessed according to personal property laws.
What happens if you voluntary repo a vehicle?
Voluntary repossession" is a term used to describe a situation in which a consumer voluntarily surrenders the property securing a loan, such as an automobile, to the lender that financed the purchase. Voluntary repossessions generally occur when a consumer has fallen behind on his or her loan payments, and decides to surrender the property rather than forcing the creditor to proceed with repossession. Voluntary repossessions occur most frequently with vehicles, but can occur with any type of secured loan, such as the purchase of work equipment, jewelry, etc.
What is the concept of repossession about?
Is is common knowledge that the concept of repossession is the taking back of property by a lender or seller from the borrower or buyer, usually due to default.
Is repossession a form of dissipating or disposing of marital property?
No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.No. Repossession is the procedure used by a creditor to take back property through a judicial processes, foreclosure, or self-help when a debtor fails to make required payments.
Can a lien be placed on a house for voluntary repossession the state of Texas?
There are no legal differences between the borrower voluntarily relinquishing a vehicle or the lender having to initiate repossession action (with perhaps the exception of additional monetary charges). If an outstanding balance remains on the original loan amount after the vehicle is sold at public auction the lender can file suit to gain a judgment against the borrower for the amount still owed. If a judgment is awarded the judgment creditor may execute it according to the laws of the state. This being the case it is possible for a judgment holder to place a lien against real property owned by the judgment debtor.
Sample copy of a voluntary mobile home repossession letter?
A sample copy of a voluntary mobile home repossession letter will have a number of tips which can be used for drafting your own. This will include details of the property in question, ownership details, location and so much more.
What happens when a creditor does not file a proof of claim for a secured debt in a bankruptcy case?
A secured creditor does not need to file a such a claim, the lien against the property is sufficient proof. Generally the lien holder/lender will ask for the automatic stay to be lifted so foreclosure or repossession action can continue or be implemented against the property. In a chapter 7 bankruptcy the borrower must be able to reaffirm the secured debt to avoid recovery or litigation action from the lender.
What does collateral mean in personal finance?
Security for a loan so the loan is secured by property, vs unsecured-more risky for creditor. Whenever, any borrower intends to raise a loan, or financial advances, either from the Creditor, or from the Banks, any prudent Creditor would like to secure the interest. It is, therefore, that the Creditor would ask to mortgage the property in exchange of financial advances being granted, or sanctioned. The Borrower, therefore, offers the property by way of "equitable mortgage" so as to secure the interest of the creditor. The very process is called the mortgage. And the property that is being mortgage is called the "collateral security". In case, the Borrower does not repay the debt due and payable, including cost, charges and interest, the secured creditor would be legally entitled to auction the property or sale away and recover the dues. The public sector banks recover the dues by auctioning the property that is equitably mortgaged.
Is hiding a vehicle to avoid repossession a crime?
Yes it is a crime! In NC depending on what the automobile cost it could even be considered a felony. It's called "secreting property", thats when the property has had several attempts to collect on it and its nowhere to be found. Then a criminal charge of "secreting property is taken out against the borrower. The borrower is then arrested.
Is it still considered repossession if you willing give the bank the keys to your property before it goes into foreclosure?
Yes, a voluntary foreclosure (deed in lieu of such) is a foreclosure just as a voluntary repossession of a vehicle is a repossession. All the same penalties/fees, recovery of debt laws apply and the information entered on the debtor's credit report will be as a foreclosure regardless of the circumstances involved.
What does secured loan?
A secured loan is a loan in which the borrower declares an asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who issues the loan. The debt is thus secured against the collateral - in the event that the borrower defaults on the loan, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
What does secure loans mean?
A secured loan is a loan in which the borrower declares an asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who issues the loan. The debt is thus secured against the collateral - in the event that the borrower defaults on the loan, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
