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courtney_6272

Secured loan

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What rights does a person have when they secure an auto loan by putting up collateral in the form of cash equal to the amount of the loan? Dot The same rights that protect the bank's should also apply to the party that puts up the money to secure the loan?

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If the person putting up the collateral to secure the loan (the guarantor) is not the person buying the car, then if the buyer defaults on the loan the guarantor can generally sue the buyer for what the guarantor had to pay the lender. The guarantor could not take the car to collect that debt prior to a court judgement unless he has a lien on the car, and most guarantors don't know they should do that at the time they guarantee the loan.

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