If bank repos vehicle, am i still responsible for the balance after bank resells?We owed $18000 on a travel trailer and were 4 months behind. We agreed to a voluntary repossession. 8 months later, I received a collection notice from the bank recovery dept. stating I owe $10955. plus interest as of Jan. 10. That would mean they sold the trailer for about $7000. If I had known i would be... |
If they didn't get what they needed to satisfy the loan, you are responsible for the difference. Try to settle with them for a reduced amount. It will lower your credit score if they mark it paid settled on your credit report, but you already have a repo on there so it's not going to be good anyway.
They should have told you that you would still be responsible for any difference between the sale price of the car and the loan balance, but I'm sure because of some language in their contract, they don't have to.
It's important to understand when dealing with a bank, that the bank didn't LEND you money and you aren't paying them back in the true sense of the word. When you signed the loan agreement, the bank was then able to CREATE the money out of thin air and deposit it into your account in the form of credit and if that isn't good enough, when whoever sold you the car deposited your check into their bank, the bank is then able to divide that deposit amount by the fractional reserve requirement and use it as the basis for even more loans. It allows the banking system to collect interest on incredibly large sums of money that they don't even have! So now, the bank has collected interest on your loan that they were able to create out of thin air because of your signature and collateral (if you don't sign, they can't loan) and now they have the money from selling your car and have likely made even more interest off of other loans that originated from their original loan creation that was enabled because of your signature on the loan agreement and they are still after you for more. So, keep that in mind if you attempt to settle the debt with the bank and they try to make you feel like a deadbeat and lecture you about "being responsible with your money".
Unfortunately, you are responsible because what they sold it for wasn't enough to pay off the loan balance. The loan agreement does not mean that if they repo the item that's the end of it - if it worked that way, people would simply trash their cars before a repo because they wouldn't be responsible for anything other than giving up the vehicle. It's not uncommon for repo'd vehicles to sell cheap.
Of course you are responsible. What world are you living in?
Why? Please. You borrowed the money and agreed to pay it back. Of course you still owe!
