1. Loan Default: When you fail to make the required payments on your van loan, the lender has the right to repossess the vehicle as per the terms of your loan agreement.
2. Repossession: If the van is repossessed, the lender or the repossession company takes possession of the vehicle and can sell it to recover the outstanding loan balance.
3. Deficiency Balance: After the sale of the repossessed vehicle, there might be a deficiency balance if the proceeds from the sale do not cover the entire loan amount, including any late fees, repossession costs, and other expenses.
4. Personal Liability: If there's a deficiency balance, you may still be personally liable for the remaining amount. This means that the lender can take legal action to collect the debt, such as pursuing a lawsuit, wage garnishment, or liens on your assets.
5. Statute of Limitations: The statute of limitations for debt collection varies from state to state. If the lender fails to take action to collect the debt within the specified time frame, you may no longer be legally obligated to pay the remaining balance.
6. Repossession Sale Notice: In most states, lenders are required to provide you with a notice before selling a repossessed vehicle. This notice should include information about the sale, the amount of the deficiency balance (if any), and your rights as a borrower.
It's important to note that the exact rules and procedures surrounding repossession and deficiency balances can vary by jurisdiction. If you have any questions or concerns about your specific situation, it's best to consult with an attorney or contact the lender directly to discuss the details of your case.
