Q: Bank can’t repo lost (not stolen) vehicle.
My fiancé and I got a vehicle together (both co-buyers on the loan). We ended up not being able to make the payments and we’re going to voluntarily give it back to the bank. It was this big ordeal and the bank wasn’t letting me set up a time for someone to either come pick it up or for me to drop it off somewhere. My fiancé was going to use it for awhile and then just leave it in a parking lot somewhere and tell them where it was.
My fiancé was letting someone use it for awhile and he was suppose to pick it up after they were done with it, but there was some issue with the key, I’m not quite sure what and he was going to go back and get it another time. I honestly didn’t really care to ask for any details and I was busy with our two young kids, so I just left it all for him to handle. He very suddenly passed away 7 months ago and I had no clue where the vehicle was and I still don’t.
What can the bank do? Should I call them and tell them or just ignore it and hope it goes away?
A:
Nothing goes away. You should inform the bank about this so that it can take any action it deems necessary for them to track down the vehicle and take possession of it. If the vehicle is repossessed, it will be sold at auction and the proceeds applied to your loan balance. However, there is no requirement that the creditor take back possession - it does not have to repossess the car in order to sue you for the balance owed.
Sorry for your loss., I'm sure its been difficult for you.
Terrence H Thorgaard agrees with this answer
A: I'm so sorry to hear of your loss. The sooner you deal with the bank the better rather than having this hang over you as well. The bank may require police report in order to attempt to locate the vehicle. If you had insurance on the vehicle, which is usually a requirement for a car loan, you may be able to file a claim on the insurance. The bank will likely file a lawsuit to recover either the full amount on the loan or any remaining balance if the vehicle is recovered and sold at auction. You should consult with a bankruptcy attorney to see if they can negotiate the debt or file a bankruptcy and discharge the debt so you are not required to pay any amount owed.
Terrence H Thorgaard agrees with this answer
A:
Tell the police that your vehicle appears to have been stolen. I know you think it was not stolen, but that is for the police to decide. If someone borrowed it, one would expect them to contact you after all this time.
In the mean time, the bank can repossess it, if they can find it. Or they might just sue you for the amount you financed.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
