Can the bank repossess both of my vehicles even though only1 of the loansis behind on payments?
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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 13 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.
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