1. Repossession and Sale: If you fail to make your car payments as agreed upon in the loan contract, the lender has the right to repossess the vehicle. Once repossessed, the lender can either keep the car, sell it at a private sale, or auction it off to recover the outstanding loan balance.
2. Auction Proceeds: When a repossessed vehicle is sold at an auction, the proceeds from the sale go towards paying off the remaining loan balance, including any late fees, repossession costs, and other associated charges.
3. Surplus Funds: If the auction sale price exceeds the total amount owed to the lender, there will be surplus funds. These funds belong to you, the borrower.
4. Notification of Surplus: After the auction, the lender is required to notify you of any surplus funds within a specified timeframe, typically 10 to 15 days. This notification should provide details about the auction sale, including the sale price and the amount of surplus funds available.
5. Claim Process: To receive the surplus funds, you must contact the lender and provide any required documentation, such as proof of ownership and identification. The lender will then process your claim and send you the surplus funds.
6. Timeframe for Payment: The lender must pay you the surplus funds within a specific timeframe, as stated in the Indiana laws governing repossession and surplus funds. This timeframe is typically 30 to 60 days from the date of the sale.
It's important to note that the amount of surplus funds you may receive depends on the auction sale price, the outstanding loan balance, and any additional charges incurred during the repossession process. If the auction sale price is lower than the total amount owed, you may not receive any surplus funds.
To protect your interests, it's crucial to stay informed about the repossession process and take prompt action to claim any surplus funds that may be due to you. You may also want to consult with a legal professional or consumer protection agency for further guidance and assistance in dealing with vehicle repossession and surplus funds.
