Quote:
Originally Posted by DenverTaco07
Oh, and another thing...i'm not sure of as i've never not paid a bill, but let's say you owe 10k on a car worth 20k, and lose your job and stop making payments...does the bank get to keep the equity...
I doubt it.
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This question has a sad answer that many people fail to realize until its too late.
Lets say your car is worth 20K and you owe 10K, but you let it go back to the bank.
Well, the bank has someone auction your car at wholesale, where it might bring 5K or 10K, depending on the day and how many buyers are there, but it sure isnt going to bring anywhere near the value of 20K (what you could sell it for). And you have no input in that sale.
So, if the car is worth 20K, you owe 10K and the bank sells it at auction for 5K, they are going to come after you, and garnish your future wages, for the other 5K you had left to pay on the loan.
If, by chance, they sell it for more than you owe, you do get the difference. But getting you more than you owe is the least of their goals in the process.