a lad insane

We have 2 cars, both of which we are still paying off (i.e. the bank holds the titles to both). This puts us in a bit of a jam because we reallly want to go back home now (been in the US just over 2 years and are heartily sick of it all). We can't sell the cars until we have the titles, which would require us to pay off the loans, which ain't an option right now.
Has anyone else been in a similar situation? What happens, hypothetically, if you just give your keys back to the bank (i.e. voluntary reposession) and tell them you can't pay them any more? I know after a repossession they usually sell the vehicle at auction and you're still liable for any difference between what they make and what you still owe. Can they still come after you even if you are back in the UK?

Just wondering....

Pony

Yes

a lad insane

What can they do? Are you speaking from experience? I'm just curious, I hope to pay them off and the sell them but I'm just wondering what would happen if we effectively walked away and went back to the UK.

Pony

International debt collection agencies can collect the debt on their behalf. Many companies specialize in doing just this. Just google international debt collection and take your pick.
They of course have to know where you have moved to, but a little investigation may reveal your a UK citizen, or have a mail redirect to the UK, etc. It seems here in the US you can buy personal records for a few dollars.

LeedsGirl

Sell the car privately, pay off the bank, once you get the title sign it over to the new owner. People do it all the time.

a lad insane

Sorry if I sound stupid but I have absolutely NO experience in selling cars in the US. Wouldn't a buyer want the title before handing over the money?

Pony

A dealer will pay off the lien and obtain the title. Of course if there is a shortfall you would have to pay that to the dealer.
I bought my horse trailer from a dealer who had a lien with his bank on it. I paid him, he paid his bank, and I got the title.
So your purchaser would pay the loan company and obtain the title.

LeedsGirl

You don't sound stupid, people sell cars all the time with outstanding loans. The buyer will of course want the title so put it in writing, and of course everything Dave said above!

honeymommy

Personal experience.

We sold a car with an outstanding loan. We called the loan company beforehand and explained our dilema. We were sent a form to complete with our details and the new owner to be details. Once we had a buyer who was willing to meet at the loan office for the title, we did just that. Called the loan office to arrange a time to see them. The owner to be paid off the outstanding loan and the company gave them a paper showing them as new owner, plus a copy of the title. The proper title was later sent to them. All sorted.

I will say though it is more difficult to sell a car this way, and we did have to sell for less than if we had the title allready. That was the incentive for the buyer though. We cleared the debt and they got a cheaper car.

hope that helps.

Dan725

But realistically it would depend on how much you owe as to whether they'd fork out all that money for an international agency. I would suspect you'd have to out a lot for it to be worth their while.

Of course, your credit in the US will be ruined for the future. Didn't you ask the same question a few months back?