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Barrister
Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 33724
Experience:  Attorney with 15 years experience in various consumer protection areas
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Can a bank/credit union repo a vehicle and a camper that the

Customer Question

Can a bank/credit union repo a vehicle and a camper that the payments are current on because a mortgage is late?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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Do the vehicle and camper have outstanding loans on both of them?
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If so, are the loans with the same lender that the mortgage is through?
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Do the vehicle and camper have any equity in them?
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thanks
Barrister
Customer: replied 1 year ago.
Thank you for responding. They both have outstanding loans that are current. They are thru the same lender but are tied to different accounts. Not sure about equity. Probably a little bit.
Expert:  Barrister replied 1 year ago.
Ok, unfortunately, way down in the fine print of the loan contracts you signed is a little paragraph about "cross collateralization" and how you agree to that by taking out the loan. What this means is that all your accounts with this lender or any subsidiary are tied together with one string. If you default on any account, they reserve the right to call every account due immediately.
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So I hate to say it, but what the are doing is legal..
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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...
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thanks
Barrister
Customer: replied 1 year ago.
Would filing bankruptcy stop this?
Expert:  Barrister replied 1 year ago.
Yes, but they already have the vehicles. It would stop any further collection actions due to the "automatic stay" that is imposed the day you actually file the BK petition. But it wouldn't necessarily force them to return the vehicles in their possession to you. ThanksBarrister