Can a car be auctioned off after I paid to reinstate the loan?
My car was repossessed about 2 weeks ago. The bank said I had till Dec 3rd to reinstate the loan. I paid the amount I was told last Friday. I was told the car would not be sent to auction. I called the tow company after I paid and got an answering machine telling me to leave a message and they would return my call within 24 hours. They called me back and said the car was already sent to auction and I need to talk to the bank. For the past 2 days, I've been back and forth between the bank and the auction house, each telling me to call the other. I don't know what to do and I'm afraid they are going to auction off the car.
- Anonymous2 months ago
Sorry, but the LEGAL answer is that once you broke contract, once it was repossessed, you lost all rights to the car. It could have been towed from where it was seized directly to the auction house. It will be auctioned, and you will owe the difference between the auction proceeds and what you owe (plus towing and expenses). The ONLY exception would be if you renegotiated a SIGNED contract with the bank. The original loan agreement/contract stands until it is replaced with another signed contract.
- davidLv 42 months ago
Not legally. The bank is liable for indemnifying you for your loss. Which bank is this, by the way.
- Citizen AwesomeLv 62 months ago
So, sorry my dear. You do have rights in this despite you having broken the agreement by not paying the loan. If they agreed to a "reset" as it is called after repo and they made the offer and u paid the full required amount to get your car back before the terms, they violated the new agreement. Also, depending on the state you live in, their may be COVID protections they are violating in handling you this way. U actually need to call a lender liability attorney ASAP. Google and check for that or one dealing with fraud or deceptive practices. Do not worry about money, if they feel they can make money aka take their 33.3% by proving the bank wronged you, leading to damages, they will take your case and just get their money upon settlement. No, you would not have a car, but u still need help don't u? Meanwhile, if the first ones decide they do not want to take your case, they will generally give u some quick verbal info on your rights and some suggestions you can do like contact your state's attorney general and consumer protection agency to file a complaint.
Next, when they(if they) sell your car at auction, the amount received goes back to pay the amount owed on your car and the fees they added for towing and storage after it was repossessed.
Also, be aware that this is truly the bank's issue. Not, the tow company. The bank hired the tow company to do a job. The tow company is NOT going to take direction from you as to going to get the car and allow u to pick it up. U need to stay on the bank. Ask for a manager or supervisor as this is past regular folks level.
My random thoughts. It sounds like either the tow company has a time frame to which if the bank doesnt state otherwise, they take the car to the auction house and they may have done so before the time framw the date gives them, so they could get more money OR the bank did not notify them that you were good. Again, contact an attorney. They like to be involved as the s h i t is hitting the fan. And dont be discouraged if several say they wont take the case. I have a friend who 8 attorneys told him "no," in his seeking an employer lawsuit. He literally settled for $192,000 with attorney 9 who took his "too difficult" case. I'm not saying you will be swimming in cash as I have no idea what your case is worth, but a year and a half later, getting retribution money feels better than a year and a half later with no money for your troubles. Plus, you need advice.
Sending you a hug.
- yLv 72 months ago
Yes, yes they can, as soon as you breach the contract, the car belongs to them and you still owe the money. Sometimes they will work with you and other times, they will not. Keep calling and such, you might get lucky.