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What if a lender repos your car and sells its for more than the balance due on loan?
Wiki User
∙ 13y ago
You may only owe one payment, and if it's late, they can legally reposess your car. I would expect they would give you ample opportunity to catch up on your payment first. Once your car is repoed, they sell it, generally at auction. The money they make is theirs. You could check your own state laws, but generally there is nothing at all that precludes them from selling the car for more than you owe. On the opposite side of the coin, most repos end up getting sold for less than the debtor owed. Then, they come after you for the balance.
Wiki User
∙ 13y ago
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Do you still have to pay the difference in the Loan?
Yes, you are legally bound to pay the difference is what the lender sells the car for and the balance on the loan.
Do the same rules apply to the voluntary repo of a mobile home?
Basically. YES. You decide you cant pay, you tell the lender you are moving, you move out, lender sells home(not as quik as a car), lender wants balance due on the loan.
In regulation U what is the meaning of carrying a loan?
The lender is "carrying" the loan on its Balance Sheet
How do you find out your car loan balance?
Contact your lender they will tell you.
If you have paid on time and would like to get rid of your car will this hurt your credit?
will this hurt my credit?": only if the is a balance due after the lender sells it(likely) and you co-signed the loan.
Where is the best place for a secured loan?
A secured loan is a loan where you will be required to use your property as security against the loan, so the lender is able to balance the risk of lending to you. The amount that can be borrowed differs from lender to lender and your individual circumstances.
What happens during a property foreclosure?
During a property foreclosure, the lender sells one's mortgages house and use the sales proceeds to pay off the outstanding balance on the mortgaged loan.
Is a repossession marked on your credit report when the car is repossessed or when the loan is paid off?
Think about it. IF the lender waited until the loan was paid off,zillions of repos would NEVER be reported. Sooo, they report them as they happen.
If your loan is current and you turn the vehicle back in to the lender can it still be reported as a repo?
YES! A repo is a repo. If you turn the vehicle in to the lender and stop making payments this is called a voluntary repossession. The lender will sell the car and you will be responsible for the difference in what the car sells for and the balance on the loan. It will be reported to all 3 credit bureaus as a default on a loan, and your credit will be ruined for 7 years. You would however save to repo fees such as towing. Do not do this. Call the lender and work something out if possible.
What is a finance charge?
A finance charge is interest charged by a lender on the unpaid balance of a loan.
What is finance charge?
A finance charge is interest charged by a lender on the unpaid balance of a loan.
How do you find out how much you still owe on your car loan?
Contact your lender to obtain the outstanding balance.
