Lien on vehicle
Date: Fri, 03/02/2007 - 17:45
My cousin has a personal loan with Citifinancial for $2500 and she gave them the clear title to her car for collateral. Well, I guess she is behind on making the payments to them, so they informed her that they put a lien on her vehicle. Was does this actually mean? Can they come and get the car from her until she is caught up with the payments?
A security interest in the vehicle was created when she signed t
A security interest in the vehicle was created when she signed the loan contract/security agreement. This means she used the car as collateral to "make sure" she repaid the loan. Perfecting a lien is just the act of making it "official" - ie sending the title to the Secretary of State to record the lien.
Just like a normal car loan, when the creditor has a valid lien then they also have a right to reposess the vehicle in the event of default. Your cousin would be best to call Citi and make some type of arrangments -- otherwise they can come take the car.
:shock: Run! Do not walk to Citi and take care of this post has
:shock: Run! Do not walk to Citi and take care of this
post haste.Just as Debtcruncher stated with their paperwork in order the vehicle can be taken.
Not only can the take the car from her, they can sell it and app
Not only can the take the car from her, they can sell it and apply the proceeds toward the loan. Then they can file suit for the unpaid/deficiency amount.
If you can avoid it, never use a home or vehicle to secure a loan because you risk losing it if you fall behind on your payments.
