CAR LOAN

Probably not. Your house is safe as long as you continue to make the mortgage payments. If you owe the IRS, they can put a lean on your home to recover the debt when the house is sold.

Profit from the experience.

http://www.creditsense.com

 

Deficiency Balance Risk

KD:
I donâ??t agree that your home is probably safe from attack, as another person suggested. Because what youâ??re dealing with is known as a deficiency balance, subject to certain guidelines in your state. Depending on where you live the deficiency, a contract balance difference based on the liquidated value, must comply with state parameters. Generally, however, if a lender is going to pursue a deficiency balance they are serious enough to execute any judgment acquired against Real Property â?? your home (if permissible, and in most states it is).

You can find a complete list of deficiency balance guidelines at our website Resource Center, listed as Deficiency Balance Guidelines (www.CreditDefenses.com/Rcenter.htm). The key to contending with a deficiency balance claim, however, is familiarization with your state guidelines on calculating liquidated value. A state like Pennsylvania for instance, may allow the retail value to be the basis for calculation of deficiency. Also, certain contract origination rules apply in different states.

All in all, lenders usually donâ??t threaten a deficiency balance case if they arenâ??t very serious about it. Put it this way, before they repossessed the auto they (in all probability) had a game plan in mind. Otherwise they would have most certainly cut a deal with you rather than repo.

Keep The Faith,

Anthony

 

RE: Deficiency Balance Risk

I stand corrected. I have seen a few people keep their homes even after the big BK. I simply doubt anyone can lose their home on a bad car loan, but I may be wrong. It won't be the first time, hopefully just the last.

Profit from the experience.

http://www.creditsense.coom

 

this is a good question for a lawyer since the law varies from state to state. there are ways to protect a home from seizure by creditors. some states protect a certain dollar amount of eqity from creditors. you may have to homestead in some places to gain maximum protection.

a creditor will not necessarily go after you for a deficiency balance either. it may not be worth it.

 

You Are Not Necessarily Wrong

CreditSense:
Please donâ??t get the wrong idea, I didnâ??t mean to imply you are necessarily wrong per se â?? only that I didnâ??t agree with the probability of KDâ??s home being SAFE from attack. Speaking strictly from experience, when I was in collections management way back in my car days. It was a standing policy never to pursue deficiency balances unless the numbers worked out, and the consumer had probable assets to attach (like a home, property, etc.).

As you may agree, for a creditor to seek litigation without reasonable hope of recovery is foolish. Whatâ??s more in the collections industry the term ATTACK does not automatically equate to judgment, but rather the attempt to obtain one. Generally, however, if a creditor (depending on who that is) threatens deficiency balance itâ??s reasonable to presume they are serious and aim to go the distance.

Also RTC (Right To Cure) aspects come into play, where the creditor is granted certain rights upon the consumerâ??s failure to perform under contract. Bottom-line here is that it all depends on in what state the consumer resides and/or where the contract terms were to be performed. Correspondingly, if a judgment is to be sought a natural target for execution is Real Property. This doesnâ??t presuppose the creditor will be successful, but few tactics can prevent the attack itself.

Anyway, Keep The Faithâ?¦

Anthony

 

RE: You Are Not Necessarily Wr

OK. Obviously, you are qualified to post on this subject. I should stick to my strengths. Exercising credit to deal from strength. Lowering credit costs and increasing the likelyhood of higher limits.
Your posts are greatly appreciated.

Profit from the experience.

http://www.creditsense.com

 

In most but certainly not all cases, the judgement only works against you when you sell property.

 

RepossessionRights.com

Justine:
To be clear, what the Lexington site indicates is: â??â?¦if a repossession is performed improperly, you may be able to get damages from the bank. In some cases, the bank may have to forfeit the deficiency on the carâ?¦â? What they are (generally) talking about in the latter case is an offset, a legal tactic that can be sought in court by way of complaint or cross-complaint. Certainly, just because a lender may have edged the law doesnâ??t automatically mean nothing is owed.

Perhaps KD should contact the Lexington firm to inquire about his/her case particulars, rather than making any decisions based strictly on website material? Great site recommendation, nonetheless, as Iâ??ve (personally) always liked many of the things Lexington has done for consumers.

Anthony

Justine wrote:
-------------------------------
If they broke the law you aren't liable!

 

is there a statute of limitations on how long a lien can be placed on one's residency. Meaning that it goes away and must be "re-liened" every several years or they forfeit the judgement?