You owe the difference I think.
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.
Will, that's usually the case. Then you pay the difference owed.
You are responsible for the remaining balance of what the vehicle sells for and what you owed when it was repo'd.
They are sent to an auction and sold.
Start by reading your contract. Then CALL the lender who sold it to get the balance due.
Any leftover debt from that car repossession can be put in your bankruptcy petition..so if you owed $12k and the bank sold it for $6k..then you can file bankruptcy on the remaining $6k.
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.
Chris, I dont know the answer to the question YET. I will find out today. Email me latyer on and Ill have it for you. What does the lender "say" they will do???
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 house is repossessed and is sold for more than you owe, you are supposed to get the extra, less the costs of the sale and perhaps also costs that the back incurred.
If your car is repossessed you are responsible for the difference in what it brought when sold by the loan company and what you owed, plus the repossession charges. That is more than likely where the $9,000 comes from. Rarely does the car bring even close to retail, and most often is sold at wholesale price. This leaves you in the hole for the balance which you will have to pay. This is repossession is such a bad idea. You need to seek legal advice from a lawyer.
personally that's more of a question for a lawyer to handle. if i were you i would speak to a lawyer its your best bet. good luck
The vehicle will be sold at auction, the proceeds will be applied to the loan and to the repo fees, then you will still be responsible for any remaining amount owed to the loan.
The vehicle will be sold. That amount will be applied to your balance. You will be responsible for the remainder owed along with any fees associated with the legal aspects etc
Let me get this straight. You filed B/K over 5 yrs. ago and the car was/is repoed recently? If this is correct, the car will be sold and the lender will want you to pay the balance still owed.
The car goes to auction, then you owe the remaining balance of you loan + repossession and storage fees minus what the car was sold for at auction.
Yes. When a vehicle is repossessed, the lienholder has to try reclaiming what they can of the loan that was made for the vehicle. A repossessed vehicle typically gets sold at wholesale auctions, and the amount paid for it is typically substantially lower amount than what's owed on the lien. You as the lessee are still liable for the remaining balance owed on the vehicle, plus the fees for repossession, storage of the vehicle, auction fees, etc.
NO, there are no more "DEBTORS PRISONS".
NO. It can be sold any way the bank wants it to be sold
To redeem collateral, the creditor sends a letter authorizing an employee or person to repossess the vehicle. The VIN number, as well as any amount owed, must be displayed on the document. This way, if the client wants to pay the money owed he/she can do so. At that time, after paying all monies owed, the secured party can not repossess the vehicle, and the payment agreement continues for the duration. If the money owed is not paid, after the vehicle has been seized, the police are notified that the vehicle has been repossessed. This way, if the person who owned the car phones the police, the police can let them know that the car was repossessed. The vehicle is stored for 30 days to give a chance for the client to pay off the amounts owed. If not paid, the vehicle is sold. The creditor has to try to get full market value. If the vehicle is sold for less than the money owed, the client is on the hook. If sold for more than the material value, then the client receives any residual money left over after ALL creditors have been paid.
Yes some repossessed vechicles are sold in auctions. There are some that the banks own, but they try to recover their moneys lost as soon as possible.
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.
The answer depends on what state you live in. In Florida, it used to be the vehicle would be auctioned off and normally could not be sold for more than what was owed. If it was sold for less than what was owed, the defaulter of the loan would be held liable for the difference. If the car was bought at a "buy here, pay here" lot, the car lot could resell the vehicle for whatever price they could get. Not sure if the laws have changed.
ASK the lender.