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| *Loan,banking and credit>>>bank loan |
My vehicle was repossessed-the bank wants the balance after the vehicle was sold (for alot less) than the loan |
I offered to make payment arrangements and they said that it was not suitable. Please tell me what the law is regarding this problem. The bank sold the vehicle at an austion for a lot less than the original loan. I owe about 9,000. for the balance of the loan - the reason why it was repossessed in the first place was because I couldn't afford the the payments (which was extremely over blue book value)..what can I do???? You had payment arrangements (the original loan payments) and failed to keep those arrangements. The company does not have to give you another chance at making payments. Since they sold the vehicle, you do owe them the money they have lost. Your options at this point are to borrow the money to pay them, let them get a judgement against you (and cease your assets now and in the future), or to declare bankruptcy. remember, if they take you to court for defaulting that: they have a duty to mitigate the debt and sell your vehicle for its TRUE VALUE. If they sold it for less than market value then they OWE YOU the difference. The law is that they sold it and you owe the deficit. There was no way they were going to get what you owed on it. When you drive it off the lot you lose a large amount of equity. This is not uncommon at all. You can sell other assets to pay the balance. For example, you can sell your computer, television and anything else you own. If you do not pay the balance the bank is going to file suit against you, attempt to seize any bank accounts you have, and garnishee your wages. You borrowed the money, the bank is well within their rights to want their money back!! You did not live up to a previous agreement to make payments (if you had, the car would not have been repossessed) It is easy to understand why the bank will not want to try for another payment agreement!! 26 years in the car business i hate to tell you this but, there really isn't much you can do. You were in a contract with the bank to pay for the car and you broke that contract. It really doesn't matter what they resold the car for you have an original obligation. Most of the time, banks are willing to negotiate with you because you couldn't afford the payment but not always. maybe a credit counselor can help you the best. good luck, hope things turn around for you! |
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