0
In some states yes. When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor
It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car
In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car
Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency
A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment. Remember this repossession will stay on your credit for 7 years.
Add your answer:
Earn +20 pts
What is an outstanding judgment on a credit report?
An outstanding judgment is a court order that gives a creditor the legal right to collect from a debtor. As court judgments are a matter of public record, a creditor can report the judgment on the debtor's credit reports. An example of a judgment placed on a credit report would be a judgment for eviction. This judgment will remain on the credit report for seven years from the filing date.
Where can you find a sample of a Right To Cure letter?
The question does not indicate if the action is to be on the part of the creditor/lender or the borrower/debtor. Nevertheless, there are not generic forms for a Right To Cure notification. Individual states establish the procedure and therefore information included in the correspondence must be in conjunction with the laws of the person's state of residency. so is there special wording in the forms? 15 days to respond to letter letter is from lender to debtor
Cease and desist letter to creditor?
Need a sample of a cease and desist letter to creditor stating I cannot pay bill right now.
How long does it take before a creditor will freeze your bank accounts?
For the most part, creditors cannot do this; the creditor will have to obtain a judgement against you first giving them the right to do so. You'll be notified of the pending court case.
If you are the executor of an estate and owe money to a lien holder can they go ofter money in the estate?
No. A personal creditor of yours has no right to attach the estate for which you are the executor. However, if you are also a beneficiary of that estate the creditor can go after your portion of the distribution.
What is real estate judgement?
A court ruling that gives a creditor the right to take possession of a debtor's real property if the debtor fails to fulfill his or her contractual obligations.
What is the consequence to the debtor if you are an unnamed creditor in a Chapter 7 and should be?
Any creditor not included in a bankruptcy discharge retains the right to continue attempting to collect a debt. That would include using legal remedy in the form of a lawsuit against the debtor.
What is real estate judgments?
A court ruling that gives a creditor the right to take possession of a debtor's real property if the debtor fails to fulfill his or her contractual obligations. A judgment lien may be made against an individual or business and allows the creditor to access the debtor's business, personal property and real estate, among other assets, to pay the judgment.
Collateral Assignment of Lease?
Collateral Assignment of Lease(Download)_________________________, referred to as DEBTOR, and ____________________________, referred to as SECURED PARTY, agree:DEBTOR is indebted to SECURED PARTY pursuant to a _________________________ dated _________________________ in the original principal amount of $______(_______________________________& _____/100 dollars); and DEBTOR is the lessor under a lease agreement with ___________________, referred to herein in tenant, for a term of ___________________ months, for the following described premises:____________________________________________________entered into on _________________________; THEREFORE,DEBTOR absolutely assigns to SECURED PARTY, all of DEBTORs right title and interest in said lease, including all rents, profits or other payments on account of said lease or the occupation of the property. In the event of a termination of the lease described, DEBTOR agrees that any further leases of the same premises, or other receipts from the exploitation of the property shall be assigned to the SECURED PARTY.DEBTOR herewith covenants:that DEBTOR is the sole owner of the lease and that DEBTOR has the right to assign this lease;that the DEBTOR has performed all covenants required to be performed by the lease;that the DEBTOR has not previously assigned the lease;that the LESSEE is not in default under the lease;that the present remaining balance under the lease is $______(____________________________&_____/100 dollars).DEBTOR agrees:that DEBTOR will continue to perform all obligations under the lease required to be performed by the DEBTOR;that the DEBTOR will make no further assignments of the lease without the prior consent of the CREDITOR;not to materially change the lease without the prior consent of the CREDITOR;not to agree to a release of the lessee; termination, buy out or other settlement of the lease without the prior written consent of the CREDITOR;to irrevocably appoint CREDITOR as its agent to enforce the lease and further authorizes CREDITOR to pursue such legal or other action as may be deemed by CREDITOR to be necessary to protect its interest herein. CREDITOR may, in its sole discretion, enter into a settlement of the lease obligation with the LESSEE and may release the LESSEE on behalf of DEBTOR. DEBTOR agrees that it shall honor such releases.In the event of a default by DEBTOR in payment or other terms of the ____________________________, CREDITOR may take possession of the premises, and manage the same. CREDITOR shall not be liable for any loss sustained by the DEBTOR due to the management of the premises should CREDITOR determine to do so, unless the loss is caused by bad faith, gross negligence or willful misconduct.Should the CREDITOR manage the premises, if the lease requires the DEBTOR to pay property or other taxes, CREDITOR shall withhold sums sufficient from the rental or other payments to amortize and pay the taxes.Any net profits after expenses incurred by CREDITOR in managing the premises shall be applied to the obligation secured hereby.This agreement provides an additional right, cumulative to all other rights, if any, possessed by the SECURED PARTY, and the SECURED PARTY shall retain all other such rights.Dated: ______________________________________________________________________________Creditor____________________________________________________________Secured PartyCollateral Assignment of LeaseReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. This document is another that provides a creditor with additional collateral to either extend credit or forebear from foreclosing on a debt.1. Make multiple copies. Give one to each signatory. Keep one copy with the transaction file.
What is an outstanding judgment on a credit report?
An outstanding judgment is a court order that gives a creditor the legal right to collect from a debtor. As court judgments are a matter of public record, a creditor can report the judgment on the debtor's credit reports. An example of a judgment placed on a credit report would be a judgment for eviction. This judgment will remain on the credit report for seven years from the filing date.
Can you still be called at work concerning a debt or is this now considered harassment?
A creditor can contact a debtor at work unless these calls are prohibited by the employer or the creditor has been told not to call debtor at work. You can also contact the creditor, in writing, to request that all calls cease and all communication be done by mail. Then the creditor will be able to contact you one more time to let you know phone calls will be discontinued. The first answer was right on the money, but remember, it HAS TO BE IN WRITING for the debt collector to be forced to comply.
Can a creditor or individual use a judgment to garnish a debtor's federal and state tax refund?
If I remember right, you can. * No. Only government agencies can seize federal or state tax refunds for matters such as tax or child support arrearages. A creditor or lender would need to execute a judgment against the debtor's bank account if the state laws where the account is held allows the action.
Does a debt collector have a right to contact a relative?
Debt collectors may contact relatives to locate a debtor, but they are generally prohibited from discussing the debt. They should only contact relatives to obtain location information, not to discuss the debt itself.
Is it right for a creditor's attorney to hang up on a person without allowing them to speak?
Right? Not illegal. Rude even. Not necessarily wrong.
How do you get a 1099c?
See my answer to post "Collections after 1099c???" A creditor will send you, the debtor, (and the IRS) a copy if they have decided to cancel (forgive) your debt by issuance of a 1099c which means they will give up their right to any further collection of this debt.
How long can a creditor hound you for an unpaid debt?
There is no time period in which a creditor/collector must cease attempts at collecting a valid debt. All US states have statutes of limitations for debts owed. The SOL is the time alloted for the creditor to file suit against the debtor to collect monies owed. The expiration of the SOL is not always a guarantee of not having to pay a valid debt(s), certain circumstances are applicable. It is the legal right of the debtor to inform the creditor/collection agency that they do not wish to be contacted about the debt either by phone, email, postal service, etc. If the debtor wishes to take such action he or she should send a "cease and desist letter" to the creditor(s) requesting that collection attempts should be ended. The correspondence should be precise and sent via registered mail with a return receipt requested in case proof is needed of the action having been taken.
Is the due on transfer clause in the deed of trust used by lenders to prevent sellers from conveying the property without notifying the lender?
Yes. The owner has no right to sell the property without notifying th bank. The present owner applied for the mortgage and was approved after a lengthy process. If that owner sells the property the lender wants its money back.
