Auto Repossession in CA - ???
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| Thu, 12-25-2008 - 10:04pm |
I have a question regarding auto repossession in California. If any of you are familiar with the laws or have gone through a repossession, I would greatly appreciate any information. Once a vehicle is repossessed and there is no intent to take it back from the bank, what happens with the remaining amount owed? Is the owner still responsible for the balance or is it considered a 'wash'?
My husband purchased a truck and is not able to make payments any longer. He recently contacted the bank and it is on file to get repossessed. He does not plan on trying to take the truck back because he needs to come up with several thousand dollars plus any extra fees there may be. Once they take it, is he still responsible for the remaining balance? Will they possibly garnish his wages?
Any help would be greatly appreciated.

Simple California contract law: Your husband will be responsible for the unpaid balance of the loan, plus repo fees, plus storage fees, minus the amount the car fetches when sold at auction (which is typically pennies on the dollar).
I am not in Calif. but I am in Kentucky and what you stated is pretty much the law here. Is there any way you guys can hold on with the payments a little longer until you can sell the truck yourselves because having an auto repoed is a really bad thing.
After the truck is reposed the lender in many cases just turns it over to the auto auctions to be sold. Most buyers are scared of auto auctions so most of the buyers that go there are owners of small used car lots. And they never bid more then a third to half of the trade in value of the auto. Also I would guess there are fees added to the amount owed. Years ago this was around 500.00 if not a little more. Now I am sure it is higher.
Then the account is sent to a lawyer or sold to a collection company and they come after the owner for what is left. Around here the credit unions and the small banks are listing auto on their web sites for sale for at least 30 to 60days before they go to auction in hopes of getting a buyer who will pay the full amount of what is owed. So they don't lose more money by selling the account to a collection company.
But in most cases who ever ends up with your account after the sale will sue you and if you don't sign an agreed judgement with the company for a monthly or weekly amount then yes your husband will be garnished and there will be a lien put on your home if you own one in any case. They will also attach any bank accounts with your husband's name on it. And it will also be extremely hard for you to get another auto as long as the repo shows on his credit report. If both your names are on the auto then