If, as is usually the case, the amount generated by the sale is less than the owed balance, the borrower is billed for the remaining amount and further collection actions, including judgements and wage garnishment, may be pursued.
As distant as a Obligation is owed on the vehicle, the borrrower grants the financier rights, including insurance coverage requirements and repossession in the advent of missed payments.
When a Borrower Misses Payments
As gangling as the borrower is moulding well timed payments to the lender, reposession is a also low likelihood. When the buyer misses one or two payments, the lender may enter upon attempting to arrive the borrower by letter, bell or other method. Whether three or extended payments are missed, the lender may assume that no also payments Testament be specious and may employ its exactly of repossession.
Lender Requests Reposession
When the borrower fails to generate extra payments or respond to the lender, the finance society may found reposession actions. In many states, these actions subsume a legal measure to lock up the vehicle's owner is legally bound to turn over the vehicle, and the community sheriff's branch is generally notified before reposession to avoid any appearance of theft. When these processes are exhaustive, the lending convention contracts a efficient and licensed reposession agent to retrieve the machine, either with a chief (if the vehicle can be easily accessed) or with a tow truck (if no key is available or the vehicle is secured).
Selling the Car
Once the vehicle is retrieved from the borrower, the reposession agent removes any unattached personal belongings. The cleaned car is then returned to the lender or sold (generally through an auto auction) on the lender's behalf. Attached upgrades to the vehicle, such as alarm systems or remote start modules, are not removed and are sold with the vehicle.
Borrower is Responsible for the Balance
After the vehicle is sold, the sales revenue is applied toward the balance owed on the vehicle. If the amount generated by the sale of the vehicle is greater than the amount owned, some funds are used to pay the reposession agent and any remainder is forwarded to the borrower.
