I have voluntarily reposessed a travel trailer, that I can no longer afford. I have a car loan at the same bank. the bank is saying that, because I defaulted on the trailer loan, that they can also reposess my truck, even though my payments on the truck are current. Can they do this legally in Texas??–Thanks!
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Sounds like a credit union, right?
They’re often small enough to put these sorts of pieces together.
The term you’re referring to is called CROSS-COLLATERALIZATION.
Uncomon for typical lenders.
Quite common for smaller lenders.
Sell or refi the truck to limit your exposure.
i dont live in texas but it dont sound right. since the truck payments are current they shouldnt be able to take it unless it was used as collateral on the trailer.
Not if they’re different loans. Exception–read your loan documents. If there is a clause saying if you default on one loan you default on any other loan with that lender then they could.
If both accounts are different numbers at the same bank then no they cannot repossessed your truck.
read the terms and conditions of the loan you signed.