You may still owe after repossession
Friday, August 3rd, 2007Dear Terry,
I live in California and the mortgage company I worked for closed. I have found new, lower-paying employment, but have fallen behind on my car payment.
— Laura
Dear Laura,
Has the car been repossessed already? If not, talk to your lender. Because you have a new job, the lender may be willing to refinance the vehicle for a longer term to lower the payments.
If it has been repossessed, the lender, or its collection agency, always has the right to seek payment for the difference between what the vehicle fetched at auction and what you still owed, plus legal fees and interest.