My sister and her husband moved from one state to another and haven't paid their car payment in two months and still haven't notified the car lot. They just don't have the money to pay it. Whats the worst that can happen?
Answer:
There are so many variables, and some people consider losing their vehicle to be worse than destroying their credit so this question is very subjective. The worst that can happen in my mind is that they end up destroying their credit while having the car repo'd.
You mentioned they moved out of state. If you are worried about crossing state lines with what you think to now be a stolen vehicle, stop worrying. Just because you fail to make payments doesn't mean you are stealing anything. They will have to arrange something eventually to end their legal responsibility for this debt, which can involve anything from paying off the full loan and keeping the car to filing for bankruptcy.
the car can be repossessed
The worst that can happen is that the finance company to whom payments are to be made reposess the vehicle. and sell it at auction and your sister and her husband will still owe for a car the no longer have.
they will repossess the car and it will be against there credit background plus there info will be given to a collection agency and if they dont pay for it the agency can take them to court to collect the payment
Eventually they will get traced and will have to pay what they owe. In the meantime they're digging themselves into a nasty hole financially and, eventually, credit-wise. There is nothing positive about not paying what you owe.
The vehicle can be repossessed and your sister and her husband's credit will be greatly affected.
This is what will happen eventually, you determine if it is worst or not.
First thing is, they will be reported to the credit bureau. At that point, they can track the last address know to the social. This means if your sister and her husband got a job, got insurance, or are renting a place, then they will find out their address. They will send notification to the new address in regards to attempt to collect a debt. Then if non-payment goes longer than the grace period stipulated in the contract, they will send out a repossesion company to reposses the vehicle. Once the loan company has aquired the vehicle, then they will sell it any way they see fit. If the amount of the loan, plus recovery cost is in excess of the amount that they received for the car, they can put a judgement against them for the remainder. In some states, this means a garnishment of wages. So, if they don't have the money now, I would HIGHLY recommend that they make arrangements or relinquish the vehicle. That way the don't accrue more costs.
Believe me they will find them. I used to be a corp collector, skip tracer and I found tons of people. After the find them they will also get a police officer & repo the car. Mostlikely while they are in bed asleep.After the car is repoed they will sell it at auction and if they don't get enough to pay off the car your sister & her husband will have to came up with the balance and have a change off on thier credit report.
A repossession order can be issued, the notification sent to the last know address. If they don't make arrangements, they will already have lost ownership of the car, and it is subject to seizure without notice. They won't be able to register it.
If they come back.it's bad news. Car repossessed...credit ruined...possibly prosecuted for fraud and theft. They need to talk to their creditors and make a deal. Most of them will work with you. They want their money not your excuses.
A big flatbed tow truck will visit their home most likely during the night and pick up their vehicle.
Their credit will also be messed up and possible criminal charges could be imposed.
The car will be repossessed. I know that most states will let you do a voluntary repossession where it will not hurt their credit so bad. If they don't return the car or make the payment, the lienholder can report the car as stolen if they know it has been taken from one state to the other. because this is basically what they have done. If they are ever stopped for any traffic violation this will show up. Tell them to return the vehicle or pay-up. Sorry!!
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