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Originally Posted by pylon
When a car goes to auction, if it is trashed or neglected, and it auctions for less than the remaining loan balance, the customer is charged for the deficit. Even if it is pristine, the customer is still responsible for any shortfall, but usually the banks are unable to collect since a repo usually leads to bankruptcy.
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Exactly, he is still responsible for the remaining loan balance. I even said that outright in my post.
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If the customer knowingly trashed the car, and it was proven, like it is with CPT. Bulldozer, the bank would have grounds to file criminal charges for damages as their asset knowingly vandalized to devalue it. Any time you have a lien on any property, be it a car or a house you only have limited title, and the basic translation is.... the Bank owns it more than you do until the loan is paid out and released.
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You are assuming that the bank put a lien on his house, but I see no evidence of that. The article says the bank put a lien on his commercial property, then tried to claim his house as collateral. Whether they had the right to do that, I can't say, but you are working off an unproven assumption here.