When a bank gives loans to individuals for buying a vehicle, they allot a definite time period for the repayment of the loan along with the interest which is charged on monthly basis. When the individual fails to repay the loan with the charged interest amount, the bank repossesses the vehicle.
In this case, the vehicle becomes the property of the bank and can be sold by the bank after a certain period of time. To avoid such a situation, it is advisable to pay off the debt within the specified time limit. There are many companies that provide the best repossessions & field services.
Deprivation of power and compensation of deficit
The situation may not always be in your favor and you may not be able to pay off the debt within the allotted time due to financial problems. The bank or lender who blamed you can then reclaim ownership of the vehicle and calculate the deficit balance.
Image Source: Google
The deficit balance is the amount that is not recovered after the car is sold. If the proceeds from the confiscated vehicle are not sufficient to cover the principal amount and interest accrued from it, the bank will ask the vehicle owner to pay the remainder.
How do I stop a car return?
Taking a car can be a big loss for you. The amount you spent on the vehicle will be lost and you may have to pay for the defect. This can be stressful for you, especially if you are broke.
If you are tired of getting your car back and you can't afford the shortfall, it is advisable to hire a debt management attorney. Lawyers will be very helpful to you in resolving legal issues to stop the car from being returned.