car repossession

[polo]

I own a 1999 Dodge Ram conversion van in which I am currently making payments to the bank on time. Due to my wife not working, we are short financially from her lack of income and struggling to make payments to avoid having a bad credit rating. We tried selling the van but with no luck. I truly want to give the van back to the bank without us necessarily being behind in payments or the van being repossed. Legally, if I return the van back and inform the bank about our situation would there be any recourse from the bank.

 

[JETX]

Yes. You have a legal obligation to pay for the van (they have already paid the dealer for you).

Here is what will happen if you do a "voluntary repo":
The bank will sell your van at auction (big loss, as much as 50%). Then they will apply the sales price (after deduct for auction fees) to the unpaid balance, plus costs and fees. This will probably leave an unpaid balance due. You will have to pay that amount in full immediately (remember, you no longer have the car to secure the note). If you can't or don't pay the unpaid balance, they can pursue legal process against you.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!