Your lender can repossess the property and sell it to pay your loan. You could be responsible for paying any amount not repaid by selling the collateral.
If you sell the car for less than the outstanding balance on the loan, you will still be responsible for paying off the remaining balance. In your example, if you sell the car for $10000 but you still owe $17000 on the loan, you will have a remaining balance of $7000 that you will need to pay to the lender.
Once your car loan is completely paid off, obtain a car title lien release from your lender so your state BMV or DMV can put the car title in your name. The lien removal process varies by state and typically involves completing paperwork and paying a fee for the new car title.
There are ways to get out of a car title loan, including paying off the loan in full, negotiating with the lender or refinancing with a lower-cost loan.
In holding states, the lienholder is listed as the primary owner on the title, and they keep the title until your car is paid off.
BUT, if you have a title loan that means you no longer “own” the vehicle, so selling it or scrapping it is technically out of the question. If you did in fact already scrap the vehicle you are still required to pay off your loan.
Remember: You can't sell the assets you pledged as collateral without your lender making adjustments to your loan agreement. Think about car loans as an example. You wouldn't be able to sell the car you're financing without notifying the lender for your auto loan.
Ask Outside Sources for Help
A close friend, spouse, parent, or close relative can be asked if they would take over making loan payments on behalf of the borrower. If someone else would like to make payments in the borrower's place, they will simply need the account number and the account holder's information.
Yes, it is possible to get out of a car loan, but there are only two ways to do it: satisfying the terms of the loan or defaulting on the loan (which can end up with your car being repossessed). Unfortunately, it's not possible to just give back a car and end the financing agreement as though it never happened.
If your lender can't locate your vehicle to do a "self-help" repossession, they can still sue you for the vehicle. This will involve a small claims case, where the judge will order you to give the car to the lender. You might even be compelled to Court to provide testimony about the location of the vehicle.
If your circumstances have shifted and you need to get your name off a car loan, you can get a release, refinance, sell the vehicle or pay off the car loan. To avoid any future headaches, check with the other borrower to ensure you are fully removed from the co-signed or co-borrowed auto loan.
No, you won't go to jail or face criminal charges for not paying back a car title loan. Debtor's jail no longer exists.
You can renegotiate, refinance or sell your vehicle to get out of a car loan you can't afford. Refinancing can be a good option if your credit score has improved since you initially took out the loan. When trying to exit a lease early, be aware of potential fees and consider transferring the lease to someone else.
A repo agent will pursue a vehicle for however long the lender is willing to pay for the services before taking some alternate form of action, such as a replevin.
In most instances, yes, you can trade in a car with a loan, and some dealers might roll your remaining balance into a new loan. But trading in your car doesn't make your loan disappear. You will still have to pay off the remaining loan balance that your trade-in amount doesn't cover.
The only way to get out of a secured loan is to pay it off in full. Since the loan is secured against a valuable asset like property, the lender is guaranteed to get their money back even if you do not pay.
If you intend to sell your car to a private party and not a dealer, you are required to pay off the remainder of your loan before doing so. Once paid off, the lienholder will release the lien with your state's transportation agency.
Yes a lender can sue the borrower in court, foreclose against the collateral, or both. How will they get in contact with the lender if they moved and are no longer working? That's the lender's responsibility; if they cannot find you it will not be possible to sue you.
If you're trying to sell your car, but you still have a car title loan with a lender, you might be wondering if you can sell a car with a title loan on it. The answer is yes, but you have to make sure the car title loan is paid off before you will be able to transfer the title to the new owner.
You could end up with negative equity.
That means your car would be less than the loan balance, making it hard to sell or trade in for a new car.
No. He would not have a basis for filing a lien against your vehicle unless he obtains a judgment against you through a lawsuit typically. If he attempts to attach your vehicle, you could sue him for wrongful attachment if he has not obtained a court judgment for the amount allegedly owed.
After you pay off your car, obtain your car title, check your credit score, review and adjust your insurance options, and reallocate your budget for savings and future expenses. These steps will help you maximize the benefits of owning your vehicle outright and improve your financial situation.
Please allow me a moment to respond to your question. I am sorry to hear of this issue. Yes, you can sue the seller for fraud if you were not told of the salvage nature of the title.