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Yes. The borrower is responsible for the entire loan amount. The car is considered collateral for the loan. This does not imply that the loan value cannot exceed the collateral value. In fact this happens on almost every car loan, especially with new cars. The lender can repossess the car and sell it. They are required to apply the proceeds from the sale to the loan principal, but any remaining balance is the borrower's responsibility.

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โˆ™ 2015-07-15 19:49:30
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Q: If your car is repossessed and sold for less than the amount owed do you have to pay the difference?
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Related Questions

What happens if your repossessed house is sold for less than what is owed?

You owe the difference I think.


What if your car is repossessed in NC and it is not sold for the amount you owe?

Will, that's usually the case. Then you pay the difference owed.


Do you have to pay the whole vehicle off if it is repossessed?

Once a car has been repossessed, you as the owner of the vehicle have the obligation to repay any amount still owed on the loan. Once a car is repossessed, it is often sold in a repossessed cars auction by the finance company. The amount which the car was sold for will be deducted from the total loan amount and then the difference will be owed by yourself. So yes you would have to pay the whole vehicle off if it was repossessed.


Can you still owe money after your motorhome is repossessed?

Absolutely. When an item is repossessed, it's typically auctioned off. The person who the property was repossessed from is still responsible for the difference between what the final auction price was and what the amount owed at the time of repossession was. Additionally, repossession, storage, and transportation costs will be added to the amount owed.


Can your IRA get levied upon if your car is repossessed?

Not at that stage of the process. Once the car is repossessed, it will be sold at auction for whatever amount it goes for. Usually very little. Then the creditor will apply that amount less fees (usually exhorbitant) to the amount owed and sue you for the balance. If the creditor gets a judgment for the difference, then it can levy upon your IRA.


Can they make you pay the difference between what the car brings and the amount you owed if your car is repossessed and auctioned in Arkansas?

YES, read the contract you signed.


Is it legal for the car to be repossessed and still require payments to be made?

Generally, if the car was sold for less than the amount owed on the loan the lender may demand that you pay the remaining balance owed.


If YOUR car is repossessed what can the lender do?

In most states, the lender will sell the car. If they sell it for more than you owed, they keep the extra money. If they sell it for less than you owed, they send you a bill for the difference.


When a car is repossessed and the value is less than the amount owed can they garnish your wages for the balance since the car was the collateral?

Yes. Once they sell your car after ropossession, they can garnish your wages, for the rest of the balance owed.


I live in Houston Texas. my car was repossessed from a auto repair shop. can they keep my car forever.?

yup The creditor who repossessed the car has to sell it (usually at auction) within a reasonable amount of time (2-3 months). They have to notify you that it will be sold. They have to give you any amount above what you owed plus reasonable attorney and other fees, or if there is a deficiency (the sale price and fees was less than what you owed), they can sue you for the difference.


When car repossessed can you pay the cars value?

Yes. And the payoff, will usually be less than the amount owed on the loan. Work with the bank. They do not want the car, only their money.


When a car is repossessed does the finance company have to sell it for the amount it is worth?

no, they will sue you for the balance owed after the sale


What happens when returning a car to a financial institution and the car is of less value then the loan amount owed on the vehicle?

The lender will expect you to pay the deficiency which is the difference between the amount owed on the loan and the amount they get for selling the car.


If your house is repossessed and it sells for less than what is owed are you responsible for the balance?

Usually, yes. The same follows with cars.


Where do you stand if repossessed truck is sold for less then the loan?

You are responsible for the remaining balance of what the vehicle sells for and what you owed when it was repo'd.


Do you really have to pay the difference between the amount owed and the auctioned amount?

YES


When a vehicle has been repossessed and then resold for more than what was owed does the previous owner receive the difference or does the car dealer?

The debtor GETS the surplus, the debtor PAYS the shortfall owed.


Can your paycheck be garnished from a repossessed vehicle?

Yes. If the car's value at repo was under what you owed they can get the difference, court costs and interest.


Why would you get a refund for overpayment on a repossessed car?

When a vehicle is repossessed, it will eventually be sold at auction. Occassionally, the amount received from the sale is greater than the balance owed. On these occassions, the excess is sent to the debtor.


Can a dealer sue me for money if he repossessed my car?

If the sale price he gets for it doesn't wipe out the amount owed, yes, he can attempt to get the balance from you.


Can a car be repossessed if money is owed to mechanic?

Yes


If you had a car repossessed and you owed very little if they sell it and get more than what you owed who gets the difference?

YOU DO, if there's anything left after the sale. Remember, if they sell at auction, it will be wholesale and NOT as much as you would pay for it.


Will gap insurance pay anything if you owe less than the cars worth?

No it will not pay anything in that case. GAP only covers the difference if the value is less than amount owed.


How can I get my repossessed truck back in Indiana?

The only way to get a repossessed truck back in the state of Indiana is to pay the balance owed. Sometimes, you can contact the lender and make arrangements to get the truck back without paying the whole amount.


You owe money on a repossessed car but the car was refinanced to someone else do you still owe?

I believe you would owe the difference. If you owed 10,000 on the vehicle and it was repossessed and someone else bought it for 8,000 you would owe 2,000.