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A collateral contract is a contract which assigns the rights and/or obligations of an existing contract to a third party. Due to the doctrine of "privacy of contract" only those parties mentioned in a contract have rights and obligations and it is illegal to assign these rights and obligations to third parties without the consent of the other parties to the main contract. Collateral contracts overcome the privacy of contract doctrine.
Collateral contracts are used in the construction industry to make a direct contractual relationship between clients and sub-contractors. In the collateral contract the client will promise to pay the sub-contractor for the works that the main contractor promised the client to undertake. This collateral contract comes in handy when the main contractor goes insolvent or has late payments or, more importantly, when the subcontractor's performance is substandard.
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Are you responsible for the balance of a loan after the collateral is voluntarily repossessed and auctioned?
YES, read your contract.
Does your partial downpayment have to be returned to you if you never paid the balance and the dealer repossessed the car a few weeks after purchase?
NOT unless the contract stipulates that it will be. Otherwise, it is a contract in DEFAULT with the collateral in the lenders possession.
What is a collateral bond?
"What is a collateral bond?"
Can the lender charge off the remaining balance of 850 dollars on a car loan of more than 13 thousand dollars which has been paid and then repossess?
As long as there is a contract with your car as collateral and the contract is in DEFAULT, the leinholder can repo(excluding B/K).
If you pay 13000 of a 15000 loan is that taken into consideration when you stop paying?
All payments are considered when you stop paying on a loan. However, when you default on the contract, it is the contract on which you are paying. The collateral only secures the loan, and if there is collateral, it may be secured (repossessed) to be sold to be applied to the balance. If you only owe $2000 on a $15,000 loan, the collateral could be worth a substantial amount. The lender may choose to sell the property for only the owed amount and fees. If so, you are out the remaining value of the property. If the lender wishes, they may choose to sell it for its fair market value, and anything in addition to what is owed should be returned to you.
How does collateral on a contract work?
Collateral on a contract can work as follows: The collateral will serve the same as actual payment if payment is not rendered at the end of the contract. Depending on the contractual agreement, the collateral may be held until the debt is satisfied or seized altogether. Check your state laws in reference to Collateral Contracts. Collateral can be offered as 'cash' for a contract. Be careful of this however, if the collateral is appraised at a higher value than that of the contract, you may be liable to surrender the balance of value. If it is appraised to be lower than the contract value, then you will take a loss.
What circumstances other than overdue payment permit a creditor to repossess collateral?
The answer to this question depends on your contract terms. Usually, a contract will spell out what constitutes a default. The contract should also say that if you default, they can repossess the collateral.
Can your car be repossessed in Missouri if you are making payments but 45 days behind?
READ your CONTRACT. Its that simple. If you are in DEFAULT of the contract, they can repo the collateral.
Can a vehicle be repossessed if the payment is 21 days late in New York State?
READ your CONTRACT. IF the contract is in DEFAULT, the collateral CAN be repossessed.
Are you responsible for the balance of a loan after the collateral is voluntarily repossessed and auctioned?
YES, read your contract.
Can they repossess your car the day after they receive a partial payment?
As long as you are in DEFAULT of the contract, the lender can repo the collateral.
What does surrendering collateral to a secured creditor mean?
It means giving up the stuff you put up to get the loan in the first place. It means giving up the collateral before the creditor comes for it. Or of course, it means giving up the collateral before there is a legal fight about it. Depending on the state and the contract you agreed to before you put up to get, surrendering collateral before litigation (going to court) might help avoid some further legal problems. Not always. Sometimes creditors want to go after the entire debt, not just what you paid off with the collateral, and your really nice attitude. Check your contract. Your debt begins and ends with the contract. If you dont have a copy, you better get one. NEVER, NEVER, NEVER dont keep your contract when you borrow money!
How far do you have to be behind on your payments to legally repo in Michigan?
Legally, ONE day. As long as you are in DEFAULT of your contract, the lender CAN repo the collateral. Read the contract for more on DEFAULT.
If a car payment is due on the 14 but a payment will not be made until the 29 can the dealer repossess the car in Georgia?
YES, if you are in default of the contract, the collateral can be repossessed. Read your contract again.
How long can you be late on car payments before they can repo?
Read your contract. One day. As long as you are in default of the contract, the lender can repo the collateral. That could include no ins. coverage.
Can a creditor reposses your vehicle if you have the automobile and the title?
Yes, IF the lender has a contract specifing the car as collateral for the loan. Once you use the car for collateral, all the titles in the world wont stop the repo if you default the loan.
Can you sell your car if they sent you the title by accident and continue your payments?
Not a wise idea because your contract with the finance company probable holds the vehicle as collateral. If you no longer have the collateral they can demand payment in full to satisfy the loan.
