Repossession: When a кредитор repossesses your car, they take possession of the vehicle because you have defaulted on the loan or lease payments. The кредитор typically initiates the repossession process by sending you a notice of default, giving you a chance to bring your payments up to date or make other arrangements. If you fail to do so, the кредитор can legally repossess the car.
Deficiency Balance: After repossessing your car, the кредитор will usually sell the vehicle at a public auction. If the sale price of the car is less than the outstanding loan amount (plus any fees and expenses related to the repossession), you may be responsible for the difference, which is known as the deficiency balance.
Payment Obligations: Depending on the state laws and your contract terms, you may be legally required to pay the deficiency balance to the кредитор. In some states, the кредитор might seek to collect the deficiency through a lawsuit or other legal means. However, in other states, the кредитор may be prohibited from holding you personally liable for the deficiency.
It's important to consult with local laws and legal experts to fully understand your rights and responsibilities in the event of a car repossession. If you are facing repossession or struggling with car loan payments, it may be beneficial to contact your кредитор or seek advice from a financial counselor to explore your options and explore any potential solutions.
