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What happens if you default on an SBA loan?

What happens if you default on a car loan but the creditor does not pick up the car?

  • The loan was defaulted over a year ago but the creditor has not picked it up. Can it be relicensed (tags expired) and driven? Don't want to do anything illegal. Have tried to contact the original creditor but no response.

  • Answer:

    You should be OK. The only trouble is that there is still a lien on the title so you can't sell the car or trade it in until the lien is released. You may also have interest compounding on the balance. The holder of the loan may sell it or turn it over to a collection agency and they will start to haunt you and your credit score can drop, which will cost you more interest in future loans you may want to get.

Sluggo at Yahoo! Answers Visit the source

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Other answers

Unless you have been notified that they are looking for it, you are still entitled to drive it. If they come looking, let them have it. Until then, register it and enjoy it.

Insurance Biz CT

Your lucky. Try to get a duplicate title, that will get the creditors attention, for sure. You can relicense as long as you have physical possession of the car.

Akbar B

fordman is correct.

SPIFIMAN1

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