Deficiency Balances Explained

If your vehicle is repossessed, you may face the dreaded “deficiency balance.”  What is it? A deficiency balance is simply the leftover payment due after collateral (your vehicle) is sold off to help pay off the seized property. If the collateral sold off does not pay off the loan, then the leftover balance is what we call the “deficiency balance.” Deficiency balances are primarily involved in cases due to repossession.

Read the full article here:
http://www.nolo.com/legal-encyclopedia/what-deficiency-balance.html

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