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Post by mexicann007 on Nov 23, 2011 5:44:38 GMT -5
But, if the vehicle is repossessed then it is sold at auction. Here, the lender is on the benefited side and he collects the sale money, while any shortfall between the sale price and the value of the loan is to be paid by the borrower.
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Post by bravo007 on Nov 23, 2011 5:56:22 GMT -5
The practice known as logbook lending, includes the established financial institutions that believed in offering the amount up to 50% (sometimes more) of the trade value of the car. Here, the borrower tends to sign a credit agreement and a bill of sale which temporarily transfers ownership of the vehicle to the lender. After which the lender is provided with a right to take possession of the car if the borrower tends to fall behind with payments.
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