Repossessed Vehicle Deficiencies
Most of us will obtain a vehicle loan at some time. This loan will be one of the most substantial debts we will obtain. Yet, when getting this loan, the decision will often be impulsive, made without taking the time to consider its cost carefully.
The terms of the vehicle loan are often complicated. Few people read these agreements before signing them, and even if they do, they are difficult to understand. The law requires a contract to state the terms of the agreement, but the law doesn’t require a lender to explain the many potential repercussions of failing to pay the debt.
As time passes, sometimes paying for the vehicle deficiencies may become unaffordable. Why does this happen? There can be many reasons. For example, financial circumstances might change because your income went down or if other expenses increased. Or the car may turn out to be a lemon or lose its value for several reasons.
In the law, none of these reasons matter.
Someone might voluntarily return the vehicle deficiencies to “do the right thing.” In contrast, other people discover that a “repo man” has towed their ride in the middle of the night.
In the law, none of these reasons matter either.
The result, however, really does matter. Whenever lenders repossess vehicle deficiencies, the already hard-strapped borrower will learn about an all-too-common problem with the unclear and technical description called a “vehicle deficiencies.”
Here is how it happens –
You sign a vehicle loan contract. Although you might be the car buyer, if you are brought in as a cosigner, you may believe you are only a “secondary” on the note. Unfortunately, it doesn’t matter who has the vehicle. Anyone who signs the loan paperwork is 100% responsible for paying it. There is no such thing as being “the secondary.” The secondary is usually the person who must pay the deficiency since they became involved because the “real borrower” had terrible credit.
- No one made the payments. It doesn’t matter if the car was repossessed or returned voluntarily.
- The creditor sells the vehicle at a considerable loss, often at a rigged auction reserved “for car dealers only.”
- The creditor sues everyone who signed the vehicle loan, seeking payment of the difference between the net sale proceeds and the loan balance.
- When the creditor obtains a Court judgment, this legal situation affects everyone who signed the vehicle loan.
- The creditor finds someone named in the court judgment with a job and garnishes their wages.
- The creditor finds the person on the judgment with a bank account and seizes the money in the account.
- The creditor records their judgment with the County Recorder, which puts a lien on every person named on the judgment who owns real estate.
Here is why it happens –
- You bought a vehicle that was too expensive for your income.
- You lost your job or suffered other unexpected financial problems.
- You cosigned a vehicle for a partner, child, family member, or friend.
- The vehicle turned out to be a lemon or wasn’t worth what you thought.
Would you like more information about ways to solve vehicle deficiencies? Request a same-day call back from our team at (702) 551-3256 or schedule a comprehensive consultation with Debt Solutions attorney Dorothy Bunce. The initial consultation is always free.
