If the proceeds from the sale of your repossessed collateral are insufficient to pay off the balance due on your loan,the lender can usually collect the remaining amount from you.

Question

Quizplus · Accepted Answer

This is true. If the sale of the repossessed collateral does not cover the remaining balance owed on the loan, the lender will likely pursue the borrower for the difference. This is known as a deficiency balance.

If the Proceeds from the Sale of Your Repossessed Collateral