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Who holds the collateral in a loan with collateral?

Carlton Burgess

in Student Loans

1 answer

1 answer

Jeremy Wood on September 4, 2018

Normally, unless it is a kind of personal piety or the type of loan, the borrower keep the collateral. For example, if you get a loan for a car, you have possession of the vehicle while you are making payments as agreed. If you stop making payments, the one to whom you owe the money (the lien holder) can repossess the vehicle, sell it, and you will be responsible for paying the difference between what it sells and the amount you still owe, if there is a difference.

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