Arrest and resulting repossession?

[exnykr]

Im with Vicky.....lol

[Dstorm]

Many loan applications allow for the lender to accerlerate payments due, or repo the property if they believe you are going to miss a payment.

It's more common on predatory lending type loans and trailers/vehicles that can be easily moved to another location.

Your friend would have to see the contract he actually signed to find out if this type of clause was in there.

(I see it's already been said in more detail above)

[vnurse]

I have read theses replies over and over and the one thing that is very disturbing to me is that any lending institution can decide at any time that I, you, any borrower MIGHT default on their loan and could come and repo my car, property, etc.

I understand that this might be a bit extreme but it COULD happen? This is MY concern and doesn't have anything to do with my acquaintance.

If my credit union found out I was in the hospital last fall and was off work for several months, they could have taken my car back? Crazy!

[Sarcastro]

Oh god, Vicki, Contracts<shudder>:

A contract for the sale of personal property requires that each party ensure that their ability to perform the contract won't be impaired. If there's some reasonable basis for doubting the other's ability to perform then a demand for assurance can be given in writing. The other party's failure to provide reasonable assurance within a reasonable period of time is repudiation of the contract.

That's the law in a nutshell. Note that it contains lots of "reasonables", and whether a lender is "reasonable" in its decision would be a matter for a jury. Remember, too, that as a practical matter lenders would far and away prefer a performing loan than a repo.

Real property is a different animal. Please don't make me go there. <shudder>

[vnurse]

Oh I understand that it isn't as cut and dried as I previously (a little sarcastically) stated. "reasonable"? There seems to be a shortage of that sometimes. I DO realize that the lender doesn't want the property back as opposed to having the note paid.

I am just going to put this out of my poor tired little mind, pass on the info that I have learned and go back to my happy place where I don't HAVE to think about such things!

I'm sorry if I stressed you, Sarcastro! I won't mention this again! LOL!
--v

[Alexxxis]

Originally Posted by vnurse

I have read theses replies over and over and the one thing that is very disturbing to me is that any lending institution can decide at any time that I, you, any borrower MIGHT default on their loan and could come and repo my car, property, etc.

I understand that this might be a bit extreme but it COULD happen? This is MY concern and doesn't have anything to do with my acquaintance.

If my credit union found out I was in the hospital last fall and was off work for several months, they could have taken my car back? Crazy!

You just said EXACTLY what I was thinking!

The information in this thread is something everyone should know. I NEVER sign a contract without reading every single word. Ever. It tends to annoy the other party involved but I refuse to enter in to any contract, no matter how small or large, without being fully informed. As a matter of fact, I had my apartment change the wording of my lease before I signed it because some of the terms were absurd.

On a side note, Jackie is so hot when she speaks about legal matters! She knows her stuff for sure and intelligence is just plain sexy.