I am cosigher on auto loan. theother party is way behind on payments. Vehicle was in an accident, other party is going to use insurance money for other things not to repair vehicle. What will happen when vehicle gets reposessed?
In California, after a vehicle has been repossessed, anyone liable on the vehicle loan contract has the right to redeem the vehicle, and in some situations, reinstate the vehicle loan. If the person liable on the contract does not exercise their right of redemption or reinstatement within the statutory time period, the finance company has the right to sell the vehicle at a public auction. If the vehicle is then auctioned off at a price lower than what is owed on the vehicle loan contract, the finance company can pursue any person liable on the contract for the deficiency.
I suggest you speak with an attorney in your area immediately to see if you can assert any defenses.
Disclaimer: I am not licensed in your State to practice law. This response was meant to provide general information and not intended as legal advice. This response also does was not intended and does not create a lawyer-client relationship.
