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seanb2020 · Oct 27, 2007, 10:10 AM

A third party took my car to be auctioned. What will my finance company do? I'm current on payments.

It's an old debt. There was a judgement so they took my car to be auctioned. What will my current finance company do about the car? Will they get it at auction? Can they get it before the auction, pay the fees and bill me? HELP!

CaptainRich · Oct 27, 2007, 10:20 AM

Originally Posted by seanb2020

A third party took my car to be auctioned. What will my finance company do? I'm current on payments.?

It's an old debt. There was a judgement so they took my car to be auctioned. What will my current finance company do about the car? Will they get it at auction? Can tehy get it before the auction, pay the fees and bill me? HELP!

Who's the third party? Was the car stolen or, more likely, it was repossesed? You don't explain how they were allowed to take the vehicle...

Generally, they auction the vehicle and any of your debt that isn't covered with that sale will be yours.

seanb2020 · Oct 27, 2007, 01:55 PM

Originally Posted by CaptainRich

Who's the third party? Was the car stolen or, more likely, it was repossesed? You don't explain how they were allowed to take the vehicle...

Generally, they auction the vehicle and any of your debt that isn't covered with that sale will be yours.

A collection company got a judgement and were allowed to take the car to auction. Will my current finance company have interest in helping me get back the car?

CaptainRich · Oct 27, 2007, 02:13 PM

The collection company is not the same as the finance company?? I don't understand this...

I don't think the finance company cares if you have the car back. They want their payments.

s_cianci · Oct 27, 2007, 02:53 PM

If the car has a lien on it giving the finance company an interest in it, then I have no idea how this third party was ever able to get the car in the first place, as you technically don't own it until it is totally paid for. The finance company owns it. As it is, unless the car was security for the debt I don't see how anyone could force you to sell the car to pay it.

seanb2020 · Oct 28, 2007, 09:56 AM

There is some equity in the car. The third party (collectors) were able to get a judgment against assets (my car). They will auction the car off and if the $$ doesn't cover the lien with my finance company the lien will remain on the car. Whoever wins the auction will have to deal with my finance company or face a repo, I guess.

And I guees I'm still on the hook with my finance company. But so is the new owner (the auction "winner"). What usually happens here?? Does the finance company go after the car (and the new owner) or just after me, or both?

ScottGem · Oct 28, 2007, 10:43 AM

Did you go to court on this? You might have been able to fight it.

Anyway, if the finance company placed a lien on the car,they have preference and may even be able to block the repo or auction. Have you talked with them?

But if the repo was legal, the proceeds of the auction should go first to satisfy the finance company's interest since it takes precedence. Which is another reason why this is puzzling. The liklihood of the third party getting anything out of auction is pretty small.

So after the auction, whatever balance is left is YOUR responsibility. You still have to pay it. And if there is still a balance, that means the 3rd party got nothing, so they can still come after you.