Repossessed

[gmcook316]

In Iowa. I bought 2 cars with bank financing, one for and with wife and one for her son. We got divorced and I couldn't handle the debt so I surrendered the vehicles as collateral and they called it a repo. While the cars were in the bank's possession hail damage caused losses on both. The bank carried insurance as of the day of repo. They settled with their insurancefor less than loan amount and are threatening me for the difference. Am I liable for their decision to settle for less due to damage done while property was in their care?

 

[Zigner]

In Iowa. I bought 2 cars with bank financing, one for and with wife and one for her son. We got divorced and I couldn't handle the debt so I surrendered the vehicles as collateral and they called it a repo. While the cars were in the bank's possession hail damage caused losses on both. The bank carried insurance as of the day of repo. They settled with their insurancefor less than loan amount and are threatening me for the difference. Am I liable for their decision to settle for less due to damage done while property was in their care?

You probably are in a better position now than if they had auctioned the cars off.

 

[adjusterjack]

They settled with their insurance for less than loan amount and are threatening me for the difference. Am I liable for their decision to settle for less due to damage done while property was in their care?

You're liable for the balance of the loan which has nothing to do with how much they got for the hail damage.

 

[LdiJ]

You're liable for the balance of the loan which has nothing to do with how much they got for the hail damage.

I kind of have the impression that the insurance company totaled them. But maybe if they did, it was better than them being sold at auction.