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The automotive manufacture has two options when repossessing a vehicle. They will either tell you to keep the vehicle and they will put a lien on your house for the value of the vehicle if there is enough equity in the house, and pressure you into selling it. If you do not sell the house then the lien will stay there until such time. The company will have to go to court to get a judgment against you in order to attach a lien to your property. Most judges will not give the judgment against your home for a vehicle. It is rather difficult to lead a normal life living in a vehicle!

The company will repossess the vehicle and that should be the end of the problem for you. They will send the vehicle to an auction to be sold for what they can get for it. They can't take the vehicle and then get a judgment against your house. They can do one or the other. They may tell you that you will have to pay the balance of what they got for the vehicle and what you owe on it. A bailiff I spoke with said that he had never heard of that happening. They took the vehicle away from you so you are not liable in any other way. If they try to come back on you, consult a lawyer.

Here is more advice from FAQ Farmers:

  • Never purchase a home without going through a title company. The title company guarantees you clear ownership to your home.they make sure there are no liens against your property. that's why you pay them at closing for the extensive search of your home title. Where I live in Texas, you cannot even get a loan without clear title.
  • Very simple answer. DON'T get re opened and if you do, pay before the lender gets a JUDGMENT for the balance due. Once the lender gets a JUDGMENT, many things are possible.
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βˆ™ 2010-03-06 16:24:45
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βˆ™ 2017-03-18 16:16:20
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This is a complicated area of law and the laws vary in different jurisdictions. You need to check the laws where you live. In a state where a judgment lien can be attached to your home, you may be able to simply wait until the recorded judgment lien has expired as long as the creditor takes no further steps. This is not an infrequent result. If the creditor moves forward on the judgment lien then you need to pay it in order to free your home from the lien.

In some states the creditor must choose to repossess or sue you for the amount owed. It cannot do both. In other states the debtor may be liable for any deficiency after a repossession. In Massachusetts the deficiency must be over $2,000.


In jurisdictions where a deficiency judgment is allowed there are various exemptions such as:


  • retirement accounts
  • some of your wages if you make under a certain amount
  • homestead exemptions for your residence in some states
  • some equity in your home in some states
  • certain public benefits


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βˆ™ 2017-03-18 16:16:20
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Related Questions

Can a lien be placed on a home if the owner owes a loan deficiency amount when a vehicle is repossessed?

Yes.


Can a car be repossessed in California without a lien being placed on the title?

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In the state of Colorado if a vehicle is repossessed do the personal items in this vehicle have to be returned?

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Can a car dealer resell a repossesed car in Illinois?

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