I have a loan secured on my car that I can no longer pay – why won’t they take it as payment?
Wednesday, April 21st, 2010 at
3:24 pm
I have a loan secured against my car that I can no longer pay. I have offered for the creditor to take the car as payment for the loan but they refuse. Plus, I can’t sell the car to get them the money to pay them because they hold the title – are they allowed to do this?
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Tagged with: Car Payment • Creditor • Money • Sell Car
Filed under: secured loan
Your car is collateral for the loan, which means only that they have the option of repossessing it to recover money lent to you, not that they are obligated to repossess it. The bottom line is that you owe the balance on your own. Not the balance on your loan or value of the car whichever is less. They would rather not take your car because then they have to go to the expense of paying someone to repossess it, store it, and sell it.
You can still sell the car even if they are holding the title, but in order to get the lien released to transfer title, you have to settle up with them in full. So they will only prevent the sale if you can’t pay the entire balance with the proceeds.
changes are the car is not worth what you owe on it == but you can sale the car and get title as long as you come up with the amount of money still owed on the car!!!!