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.
You owe the difference I think.
Will, that's usually the case. Then you pay the difference owed.
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.
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.
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.
YES, read the contract you signed.
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.
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.
Yes. Once they sell your car after ropossession, they can garnish your wages, for the rest of the balance owed.
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.
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.
no, they will sue you for the balance owed after the sale
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.
Usually, yes. The same follows with cars.
You are responsible for the remaining balance of what the vehicle sells for and what you owed when it was repo'd.
The debtor GETS the surplus, the debtor PAYS the shortfall owed.
Yes. If the car's value at repo was under what you owed they can get the difference, court costs and interest.
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.
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.
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.
No it will not pay anything in that case. GAP only covers the difference if the value is less than amount owed.
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.
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.