Do I still owe money after repossession?

Do I still owe money after repossession?

If your car or other property is repossessed, you might still owe the lender money on the contract. The amount you owe is called the “deficiency” or “deficiency balance.”

What happens if I pay off a repo?

Often, a bank or repossession company will let you get your car back if you pay back the loan in full, along with all the repossession costs, before it’s sold at auction. You can sometimes reinstate the loan and work out a new payment plan, too.

Is a repossession a Judgement?

If your car has been repossessed for failure to make payments, the sale price of your car at auction may not cover the balance that you owe to the lender. If not, your lender can ask that a court enter a monetary judgment against you for the remaining balance on your loan, called a deficiency judgment.

Can a deficiency Judgement be negotiated?

Negotiating With the Lender to Waive the Deficiency Judgment Some lenders will agree to waive the deficiency. When negotiating with your lender for short-sale approval, ask it to forgo the right to seek a deficiency judgment. If your lender agrees, this provision must be included in the short sale agreement.

How long does a deficiency Judgement stay on credit?

A deficiency judgment will remain on your credit report for seven years. If the judgment remains unpaid, however, your creditor may apply with the court to have the judgment renewed for another seven-year period.

How long does a deficiency judgments last?

States have different statutes of limitation on how long they allow lenders to pursue deficiency judgments, ranging from 30 days to 20 years.

What happens if u dont pay a Judgement?

Keep in mind that if you do NOT pay the judgment: The amount you owe will increase daily, since the judgment accumulates interest at the rate of 10% per year. The creditor can get an order telling you to reimburse him or her for any reasonable and necessary costs of collection.