Can the bank repossess both of my vehicles even though only1 of the loansis behind on payments?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can the bank repossess both of my vehicles even though only1 of the loansis behind on payments?

I have 2 cars, 1 which will be paid off in 4 months. The other will probably be repo’d since the amount due on it is double the value of the car. Can the bank also repo the other car that is almost paid offr

Asked on August 30, 2011 Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The fact that you have two loans to the same bank does not automatically give it the right to repossess both vehicles if you default on one of them. The right to repossess comes out of the security interest given in property, which will be in the agreement(s) (e.g. the financing agreements) you  signed. Unless you specifically give someone a security interest in property (e.g. it's collateral for a loan), they cannot repossess it, even if you default on another loan. Typically, with car financing, only the loan for that car itself gives rise to a right to repossses in the event of a default. That said, check your financing agreements and any other agreements with this bank--it is not illegal to have multiple loans be cross-collateralized, so if you default on one, the others are considered in default, tooo, and the bank can repossses  the property securing the other loans. Make sure that nothing yoiu signed gives the bank the right to do this.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption