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The automotive manufacture has two options when repossessing a vehicle. They will either tell you to keep the vehicle and they will put a lien on your house for the value of the vehicle if there is enough equity in the house, and pressure you into selling it. If you do not sell the house then the lien will stay there until such time. The company will have to go to court to get a judgment against you in order to attach a lien to your property. Most judges will not give the judgment against your home for a vehicle. It is rather difficult to lead a normal life living in a vehicle!

The company will repossess the vehicle and that should be the end of the problem for you. They will send the vehicle to an auction to be sold for what they can get for it. They can't take the vehicle and then get a judgment against your house. They can do one or the other. They may tell you that you will have to pay the balance of what they got for the vehicle and what you owe on it. A bailiff I spoke with said that he had never heard of that happening. They took the vehicle away from you so you are not liable in any other way. If they try to come back on you, consult a lawyer.

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  • Very simple answer. DON'T get re opened and if you do, pay before the lender gets a JUDGMENT for the balance due. Once the lender gets a JUDGMENT, many things are possible.
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14y ago
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7y ago

This is a complicated area of law and the laws vary in different jurisdictions. You need to check the laws where you live. In a state where a judgment lien can be attached to your home, you may be able to simply wait until the recorded judgment lien has expired as long as the creditor takes no further steps. This is not an infrequent result. If the creditor moves forward on the judgment lien then you need to pay it in order to free your home from the lien.

In some states the creditor must choose to repossess or sue you for the amount owed. It cannot do both. In other states the debtor may be liable for any deficiency after a repossession. In Massachusetts the deficiency must be over $2,000.


In jurisdictions where a deficiency judgment is allowed there are various exemptions such as:


  • retirement accounts
  • some of your wages if you make under a certain amount
  • homestead exemptions for your residence in some states
  • some equity in your home in some states
  • certain public benefits


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Q: What can a homeowner do to ensure that no liens are placed on their home for a repossessed vehicle?
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Related questions

Can a lien be placed on a home if the owner owes a loan deficiency amount when a vehicle is repossessed?

Yes.


Can a car be repossessed in California without a lien being placed on the title?

IF the loan is perfected, it can be repossessed. If you have signed a loan contract with the vehicle specified as collateral for that loan, it can be reepossessed if the loan is in default.


What happens if a car has dents and is repossessed?

It gets placed in the junkyard. In order to get the vehicle back you must you pay your bill, as well as pay your local junkyard company to get your car back.


Can a vehicle be repossessed if the title has no security interest on it but you used the vehicle to get the loan but never gave them the title?

a lien can be placed on a title without you giving them the title. call your states DMV and ask if you car has a lien on it. I think you will be surprised. Good Luck


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In the state of Colorado if a vehicle is repossessed do the personal items in this vehicle have to be returned?

As soon as your vehicle is delivered tot he storage lot, it is typically inventoried. That is all personal items are listed and placed in storage. Upon your request, these items will be returned to you. Keep in mind thought that you may be required to pay storage for these items before they will be returned.


Can a car dealer resell a repossesed car in Illinois?

When cars are financed, they're usually financed by a bank or some other type of lender. Once the car is repossessed, and the person it's repossessed from fails to recover the vehicle, the vehicle is sold at auction. Dealers attend these auctions, and bid on those cars. Once they've placed a winning bid and paid for the vehicle, it's theirs to sell. Now, if a dealer is the one who financed the car, they'll be the ones to repossess it. Once they've determined the person it was repossessed from isn't recovering the vehicle, they have every right to sell it. Hate to break it to you if this was your car, but it was never yours - so long as there's a lien on that vehicle, the lien holder is the rightful owner of the vehicle. Once they've given up on you reclaiming and making further payments on that vehicle, they can do whatever they want with it - because it belongs to them, and always had, from the moment they became the lienholder.


Which is an action you should coordinate with the APC before you start a permanent change of station pcs move?

Ensure your IBA is placed into a PCS and Mission Critical Status


Can a lien be placed on property that has joint ownership when the car that was repossessed had only one person sign that contract?

Absolutely, yes.


Can a bank demand payment in full on an auto loan if the vehicle was repossessed for no insurance?

Yes. A bank repossesses a vehicle for nonpayment. If your vehicle was taken for being on a public roadway and not having insurance, it was impounded. When a vehicle is impounded, a lien is placed on it by the agency which ordered the impound. The interests of government agencies override those of the bank, and they can sell your vehicle to recoup impound costs if you do not reclaim it within a specified period of time. In this case, the bank receives nothing from the sale, and you still owe the bank the remaining balance.


What is an insurance endorsement?

An insurance endorsement (also known as a rider) is a document that is attached to an insurance policy which modifies or changes the coverage provided in that policy. An example endorsement is one that is placed on homeowner's insurance which protects the homeowner from floods.


Can your car get repossessed for not paying your insurance?

IF your loan contract specifies that you must maintain insurance covering the vehicle, the answer is YES. Just an echo of the previous answer, most major lenders require that the vehicle maintain full coverage insurance. It states in your finance agreement that the vehicle must remain insured or it can be repossessed.