What happens when an individual gets a loan involving Cash For Title in West Palm Beach FL and simply cannot make the payments? The lending company has the legal right to repossess the vehicle, although usually they just as soon avoid doing so. Depending on the situation, the borrower may be able to have the loan refinanced with more affordable payments. If the borrower has proof of regular income, he or she might qualify for an installment loan that would pay off the title loan.
What if the borrower is interested in surrendering the vehicle to the lending company and ending the payment obligation altogether? The lending company may accept this offer, especially since doing so avoids the hassle of contracting with a service to do the actual physical repossession.
Problems may arise, however, if the company cannot sell it for the amount necessary to pay off the loan in full. The borrower will still be responsible for that amount, including any costs the lender incurs in taking over the title as the full owner and selling the vehicle. If he or she defaults, the lender will probably start collection activity. If this company reports to credit bureaus, the customer’s credit rating will take a hit.
In contrast, it’s important for the vehicle owner to learn what happens if the lending company actually can sell the car or truck for more than is owed on it. The borrower should be able to receive the amount that’s above and beyond the money owed.
Lending institutions that offer Cash For Title in West Palm Beach FL generally want to work with the borrowers when difficult situations arise. They prefer to maintain a reputation for being understanding and to dispel any accusations of being a predatory lender. Offering refinancing options or an installment loan may be suitable alternatives to repossessing the vehicle. These options give the borrower more time to earn extra money and pay off the loan in full. Anyone who wants to learn more about borrowing money with a car or truck title loan may Contact Cash 2 U for more information.