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It is treated the same as defaulting on your credit card payments, or mortgage. After we take your car, we sell the unit. Whatever the difference of what the car sold for and what you owed on the unit minus fees is taken off your loan amount. That amount goes on your credit and is treated as any other bill you owe, it is all civil.

Personal Note:

Laws are starting to change in different states, a friend of mine just got sued for an unpaid hospital bill and he is being garnished. Thats crazy to me.

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Q: Can the lender put a lien on your house or garnish your wages for the deficiency owed on a repossessed car?
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Related questions

In the State of Texas can the lender on a repo for the deficiency that is still due after the auction put a lien on your house?

YES, who spread that rumor? LOL Texas is a no garnishment state. Therefore they cannot garnish your wages for any reason.


You live in Texas if you give your car bac to the bank what is the worst thing that can happen Can they garnish your wages or sue you?

After the lender gets a judgment they can garnish your wages but they cannot getyour house unless you used it as collateral for the car loan.


When you rent and the house is gettin repo?

If the property is being repossessed, you should expect to have to vacate. That is because the owner no longer has control of the house he is renting to you. Alternatively, you can try to call the lender and make new arrangements.


What happens if you get your car repossessed?

if i get my car repossessed, can they put a llien on the house?


Does private mortgage insurance change the foreclosure or deed in lieu proceedings?

Private mortgage insurance or PMI is insurance to protect the lender if the home is foreclosed upon and there is a deficiency. That deficiency is paid by the insurance company. It would not appear to have an effect on the foreclosure proceeding, just on your liability for a deficiency. However it is to your advantage also to have MI if your house goes into foreclosure. Not only do they pay the lender and cure a portion of the definciency, but often they get involved up front and try to work with the borrower and lender both to avert the foreclosure. That way they are paying a lower claim and the borrower gets to keep their house. I've even heard of the insurance company helping the borrower get short term loans, renegotiate the mortgage or helping them find a buyer.


Is Nevada an anti deficiency state?

Pursuant to Nevada Revised Statutes 40.451, Nevada is a deficiency state, which means that the lender may sue a homeowner after foreclosure for the amount the house sold that was less than what was owed. The homeowner will then have to pay the lender any amount that was due on the loan that was not paid off at sale. For example, if a home was purchased in 2006 for $400,000 and in 2009 it appraises for $300,000, and the homeowner cannot afford the mortgage and allows the lender to foreclose, and at the foreclosure sale the house sells for $200,000, the lender may file a lawsuit against the homeowner (known as a deficiency law suit according to statute). The deficiency law suit must be filed within six (6) months after the foreclosure sale, and the amount of the deficiency judgment is determined by a statutory formula. An appraisal is obtained to determine the actual fair market value on the date of sale. The homeowner is given a credit for the appraised value, or the sales price, whichever is greater. In the above example, even though the house only sold for $200,000, the homeowner is given credit for $300,000, therefore the deficiency judgment (the amount owed to the bank) is $100,000 - the difference between the amount owed and the market value, not the actual sales price.


What is the process of buying a house?

When buying a house, you need to go to a lender. The lender will then work with you to get everything you need to have done.


You want your house repossessed?

no i dont think any body would like their house repossessed because that will mean your a tramp, then u will be put in a dangerous place .. :'(


How does a house repossession effect your credit?

In the UK if your house is repossessed it will stay visible on your credit file for 6 years. It would be very difficult to obtain credit with this on your file. It is possible to obtain another mortgage but this would be from a specific lender and your monthly repayments would be considerably higher. If you have mortgage arrears or in the process of having your property repossessed this can be stopped. If you type in your address bar "stop repossessions" you should be able to find help.


Is a deed in lieu of foreclosure better than a foreclosure on your credit report?

Yes. Answer {| |- | This is where you are unable to pay for the house and you voluntarily give the house back to the lender. This is subject to a deficiency judgment yet counts as a "less serious" foreclosure on your credit. However, you lose your greatest asset, your home. |}


If you have never had a car repossessed you have had a house repossessed Can I still get a car loan?

Most likely not depending on what financial situation you're in.


How can a house be repossessed?

The legal term is foreclosure. Anytime a mortgage agreement is defaulted on the lender has the legal right to begin foreclosure procedures to seize the property and sell it for the fair market value. States establish laws that control the way a lender can implement forclosure proceedings. Some states allow the lender to use the self-help method, meaning no court procedure is necessary. Others states require the lender to use the due process through the court as prescribed by state laws.