What happens when a car is repossessed that has negative equity on it?
Monday, March 1st, 2010
Mrs. Dwight asked:
Lets say a person couldn’t make payments on a car anymore, the car is only worth $20,000 but they owe the bank $35,000. If they were to have their car repossessed, what would happen? Would they have to come up with the extra $15,000 in cash or would it just go away? Basically, what happens in car repossession when there is negative equity involved?
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Lets say a person couldn’t make payments on a car anymore, the car is only worth $20,000 but they owe the bank $35,000. If they were to have their car repossessed, what would happen? Would they have to come up with the extra $15,000 in cash or would it just go away? Basically, what happens in car repossession when there is negative equity involved?
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Tags: Car Repossession, Negative Equity
Posted in Personal Finance | 4 Comments 
