Christine, while you didnt have coverage , you were in default of the contract. Then they could repo the car. Until the lender gets the notice that you have coverage again, you are still in default. maybe there are other issues that put you in default???
2010-09-21: It has been my experience that when notified of non-insurance, the creditor (bank or credit union or otherwise) can demand immediate payment of the balance of the loan. Not repossession. They don't really want the car; they want the money. They didn't select the car; you did. See how it works? You don't insure? They want their money. Where i live, it is a requirement that an insurance company notify the lien holder (bank) upon no insurance on a vehicle. Would you rent a safety deposit box at the bank and let them leave the box outside for the night? Well, maybe bad analogy, but you get the point.
2 factors: 1. Are you current on your payments? - if you are not current on your payments the creditor will most certainly repossess your vehicle. however you will not be liable for any deficiency amount. 2. Who is the creditor? - Most creditors will gladly continue to accept payments on the vehicle and not repossess it. however some creditors such as Ford Motor company will repossess regardless of whether or not you are current.
If the creditor is the loan holder of the vehicle a lien is already in place. The title will show the loan provider as the primary lien holder. That insures the vehicle as collateral and if default occurs the lien holder can repossess the vehicle without going to court. Except in the few states that require the creditor to obtain a replevin order before seizing the vehicle.
Unless you are a creditor, I assume you mean can you surrender a car to the lender in a voluntary repossession. If the creditor will do it, you can. Obviously it will depend on the mileage and condition of the car, but these days it is complicated by the state of the economy, so not likely. You can surrender the vehicle in a Chapter 7, where the creditor has no choice.
If you want to know if the creditor must put insurance on your car. The answer is No. They don't have to do it, it is your car and it is your responsibilty to do so. Apart from being the law in most states as to certain types of coverage, it just makes good common sense. (and financial sense too!) Generally, the loan contract that documents the money borrowed for the car will state that you will keep the car insured for physical damage (generally, collision and comprehensive coverage). This is important from the lender's standpoint, because the insurance provides a source of funding for the repair of the vehicle and therefore preserves the value of the collateral that secures the loan. In that regard, if you as the borrower do not present proof that the insurance requirements have been met, the lender will generally have the right to acquire physical damage coverage to protect its interest. The lender will usually initially pay for it but add it to the balance that you owe on the loan.
If you cannot pay the creditor and have not made any arrangements with the creditor to remain on the property then you should be prepared to vacate the premises immediately. As soon as the sale takes place there is a new owner and the property is no longer yours. There can be problems with liability and insurance coverage from that moment on and it is not in the buyer's interest that you remain on their property, uninsured.
Pledge of Life Insurance Policy to a Creditor(Download)______________, referred to as DEBTOR, and __________, referred to as CREDITOR, agree:______________ is indebted to CREDITOR in the amount of $_____(_________________________&___/100 dollars) by virtue of _________________ dated ____________. DEBTOR assigns to CREDITOR the following policy of life insurance:Policy number: _______________________________________Face amount: $_____(_______________________&____/100 dollars)Amount of loans/charges against policy: $_____(__________________&____/100 dollars)as collateral for the debt.Any and all proceeds from the policy are assigned to the CREDITOR, to the extent of principal and interest due upon the debt, and any renewals and extensions thereof. The DEBTOR shall prepare any further instruments required to effect this pledge.Dated: _____________________________________________________________________DebtorInsurance Policy Number:________________________________________________________________, by an authorized officer of CreditorPledge of Life Insurance Policy to a CreditorReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. A pledge of life insurance proceeds is a common request by major creditors including financial institutions buying stock from the Company. It secures their interest should a key principal die.
How many 3s in 313433535333?
Is it true that one human year is equal to seven dog years?
How many fifths are in 6 tenths?
What is half of 74?
Who has won World Series both as a player and manager for the New York Yankees?
How do you spell water with 3 letters?
The more you take the more you leave behind what am I?
What Roman Numeral is xxx1x?
What is doomscrolling?
How did the Wiffle Ball get its name?
Do schools still teach cursive writing?
Can eggs break inside a chicken?
Why do books come out in hardback first?
What happens when a beehive gets too full?
What is the difference between an optometrist and an ophthalmologist?
How can you tell when someone's lying?
What are the advantages of stress interview?
Why the story entitled origin of fair complexion and fair hair?
Ano ang kahulugan ng iskolarling pagpapahayag?
What is a classified data spill or negligent discharge of classified information?
Ano ang papel na ginagampanan ng mga impormasyong ito sa mapa o sa globo?
Which of the following statements is true about storing classified documents?
When two pieces of cui or other unclassified information are posted online together?
What are the solutions to the crazy kiwi game?
Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.