What Are the Effects of an Auto Loan Default?
When a borrower defaults on their auto loan, there can be a number of effects. The most immediate effect is that the vehicle may be repossessed by the lender. This can lead to a number of problems for the borrower, including difficulty in getting around and credit score damage. In addition, the borrower may also be responsible for any deficiency balance on the loan, which could result in hundreds or even thousands of dollars in debt.
Defaulting on an auto loan can have long-lasting effects on a borrower’s finances. In addition to the potential problems mentioned above, it can also make it difficult to get approved for future loans, including mortgages and other types of financing. Defaulting on an auto loan can stay on a credit report for up to seven years, making it difficult to rebuild credit after a financial setback.
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.
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