0
Then the lender can proceed collection efforts, which can lead up to a lawsuit, a judgment, wage garnishment, or lien on your property.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What happens when a car is repossessed and you are the cosigner?
You will also be liable for any deficiency balance
Can your wages be garnished for a car that was repossessed?
Yes, if there was a deficiency balance owing after the car was sold at auction. Your creditor would have to sue you and obtain judgment in order to garnish your wages.
What is a deficiency judgment tied to property and how do you benefit when trying to rent an apartment?
I will answer the 1st part of the question "What is a deficiency judgment tied to property".A deficiency balance is whatever is left of a loan when the security has been sold--such as a repoed car is sold for less than the loan amount plus repo costs, storage, title & taxes, the balance remaining on the loan after applying what the car sold for is a deficit balance.A judgment was filed by the lending company to recover whatever money is still due them anda judgment automatically ties to real estate property if the borrower owns a home.
What happens if you don't pay your car loan?
The repossess the car, can get a judgment against you and your credit is badly damaged.
Approximately how long after your car is repossessed do they come after you for the deficiency?
As soon as the lender sells the car, they will know what the balance due is. Then they will come after the money. You will know when that happens.
Can a car be reposessed after judgment?
Whether or not a car can be repossessed after a judgment depends on the judgment.
What happens if you dont make any payments on your car loan?
u eventualy lose your car
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.
What happens if you cancel car insurance and dont return tag?
Most of the time, your car may be de-registered.
What happens to people inside a car during a collision?
when your inside a car, and you dont have your seat belt on, your like a missle
After a car is repossessed what happens to the owner of the car does he have to pay it off or what happens?
The former owner of the car, now still owner of the DEBT, gets to pay the debt. The leinholder will likely get a judgment for the balance due and proceed to collect. Uless your name is 'turnip", you will pay.
When do you know if the bank is getting a deficiency judgment against you?
This is an news story I stumbled across while looking for the same answer you were. The third paragraph explains it. In my case, they did not seek a deficiency judgment because I owed 64,000, they foreclosed and sold it for 34,000 and the fair market value was 30,900.I was negotiating on a very large problem mortgage today with a high-up executive at the servicing firm. He made a comment that I thought peculiar and I called him to task on the matter.The comment was that "after the foreclosure sale, lenders seldom bother to get a court ordered deficiency judgment". I knew this to be false, because lenders today - more than in the past - are investing a few hundred more in attorney fees to get a deficiency judgment. I will tell you why.But first, lets all get on the same page. A deficiency judgment is obtained when a property is foreclosed and sold (usually at the courthouse by the clerk of the court) to the highest bidder. In most states a "deficiency" judgment can be obtained for the difference between the high bid and the higher foreclosure judgment amount. Usually the court determines which value is higher, the high bid or the appraised value of the property on the date of the public sale, and the higher of the two is taken to determine the difference from the judgment amount, and this difference is the deficiency judgment.Ok, back to the discussion. Deficiency judgments are just that - judgments. They are a pain in the neck to the debtor and can only be removed by paying it off or by bankruptcy. Further, money judgments usually earn interest until paid.Now the bank that gets the deficiency judgment might have said that they seldom enforce a deficiency judgment. They are right. They sell the judgments for 5 to 10 cents on the dollar. So for a $100,000 deficiency judgment they invest $500 in attorney fees and get $10,000 in return just for pushing paper.The problem with a money judgment, which is just what a deficiency judgment is, is that it won't allow you to buy anything on credit! New house? Forget it. New car? Forget it. You want to sell a house? You got to pay off the judgment (there are some exceptions to this rule).So the question then can be brought over to unsecured promissory notes on short sale shortages. Yes, the banks do the same thing. They get about 5 cents on the dollar.The executive on the phone laughed and told me I was right - both in the concept and in the pricing and that his firm helps companies that hold these packaged notes collect them from the borrowers.There is a lot of discussion about how a short sale vs. foreclosure affects a FICO score. Frankly, even if it were the same, the differences in having a deficiency money judgment and a negotiated note are HUGE differences and that alone should settle the dispute.
