Q: I have to let my car go due to a blow out engine. But now tthey are saying they will come tow my 2nd car because of this
Can I refinance my 2nd car to another bank before they can do this? Even though I’m caught up to payments.
A:
Cross collaterization occasionally happens with car loans.
You will have to refinance both loans.
A: My previous answer, of course, assumes that there is a valid agreement cross-collateralizing the loans. Your security agreement would have to include such a provision. Typically it would say something like "any collateral pledged to secure any obligation of Borrower shall also secure any other obligation of Borrower to Lender" or words to that effect.
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