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  • Dec 14, 2006, 02:47 PM
    Repo in Colorado
    Due to a divose I am no longer able to make the payments on my truck. I asked about voulentering to let it repo but they then seid they would put a lien on my house for the diffence. The house is for sale. Can they do this?

  • Dec 14, 2006, 08:10 PM
    Not automatically.

    First they could repo the truck, or take you to court and get a judgement on the court, but even after they repo the truck you still owe the difference, they don't just forget it. So if you owe 10,000 on the truck now, they repo it and add lets say 3000 in repo and legal fees. They sell it at auction with a auction fee of 2000. So they have 10000 loan and now 5000 in fees, at auction the truck sells for 8000 ( and that is being nice) so you end up still oweing 9000 after they take the truck back.

    So they sue you for a judgement on the balance. Once they have a judgement they can attach your bank accounts, get a garnishment on your pay check, and maybe, just maybe get a lien on your home, which would have to be paid when you sold your home. ( if they know you are selling the home and thing there is enough money in it, they may try it)
  • Dec 15, 2006, 04:44 AM
    They cannot put a lien on your house, until they have a judgment, if will take on time before that even happens.

    How long has the house been for sale?
  • Dec 15, 2006, 05:46 AM
    You do not want to give them the truck back unless they totally forgive the loan, which is unlikely. As Chuck said, this will mean they sell the truck for whatever they can get then go after you for the difference.

    The thing is its unlikely they will be able to put a lien on your home. Most states prohibit liens against a home unless the home was originally used for security on the loan. The exception is a mechanics lien from someone who did work on the home.

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