Bad Credit? - Repair it here yourself!

There're many reasons you may want help for bad credit. We're here to help you understand what affects credit, what makes credit bad, how and what entities define your credit, guide you through the credit definitions, financial concepts, common misconceptions and provide you with information and tools that will help to solve your credit problems. Get help for bad credit now! To achieve this, we provide you with Free Access to a wealth of credit related content, forms, tools and calculators. We show you how to improve your bad credit step by step, reestablish your ability to borrow monies, how and where obtain loans, credit cards, mortgages and other financing. Repair Credit now!

Voluntary repossession doesn't protect you from a deficiency judgment

Tue Nov 4, 2008 04:11PM | By Tony

See more in Personal Finance | Permalink | Email | Comments (0)

Four emails came within last 2 days with the following question - if I voluntary give up my car to the lender which is known as Voluntary Repossession, will I be protected against a deficiency judgment? For the readers unfamiliar with this term, a deficiency judgment is the difference between what you owe on your loan and the smaller amount your creditor receives from selling repossessed car. No you won't be.

Voluntary repossession is still a repossession. While the creditor expenses and time in repossessing the vehicle are reduced, if the outstanding loan higher than the proceeds received from the car sale, you must cover the difference. Since many cars depreciate rapidly and are purchased with 60- or even 72-month loans with high interest rates, huge number of borrowers owe more than their cars are worth.

Post a comment

Name:

Email:

URL:

Remember personal info?

Comments:

Please enter the code as seen in the image above to post your comment: