Who owns your car?

[Huw Powell]

>> As I see it, that is all correct except for the fact that in this case 
>> the car is worth less than the debt on it.

> The only case where the lienholder would be stuck where the car is worth 
> less than the loan value is if the owner died penniless (or owed more 
> than he had in assets at the time of death,) or filed bankruptcy and 
> turned in the car to the lienholder (which would absolve the remainder 
> of the debt.)

Good point - I guess most of this would be in the fine print of the loan.

Some loan devices require life insurance for the debtor, for instance, 
keep things simple.

I guess the fine print in question would somehow allow the bank to 
extend their collateral interest to the rest of the loanees assets in 
circumstances like this, and I bet it's in there, considering who gets 
to write the fine print!

-- 
Huw Powell

http://www.humanspeakers.com/audi

http://www.humanthoughts.org/