My mom who has moderate dementia is living with me. We turned her car in as she can no longer drive. We want to use the car payment money for items like depends, diapers, gloves, etc. We took the car to the bank ourselves and gave it back to them, telling them why and that way we wouldn't have to have it repossessed and even worse on her credit (at this point what's it matter). We got letter saying they are selling the car and if they can't get what is owed on it they expect her to pay the difference. I did not and do not intend on telling her this as she is obsessed with money and worrying about the car. Is there anything the bank can do to try to make her pay this with all she needs to take care of her and in her demented state? Is this something to be concerned about? She doesn't own a home, has no savings and nothing they can go after as payment, and she did not have a cosigner on the loan. HELP!!!
I assume that this is a form letter that you got. Can you check the Kelley Blue Book Value of the car and compare it with the loan? Is there a big difference?
It is unfortunate for the bank, but they cannot get blood out of a turnip and mother cannot pay. I assume she took out the loan in good faith and intended to pay it back. Life intervened. It is what it is. Protect your mother from the hounding that will start after the car is sold.
(BTW, does anyone know why someone would want to get blood out of turnip?)
Bank strikes me as the type of seller to sell at wholesale, they will unload the item for whatever amount, knowing they still have your mom on the hook to pay the loan amount. Banks aren't known for their kind generosity in how they treat the people who owe them money, even considering your mom's circumstances.
You can "name and shame" them online, though, and that may (or may not) get you somewhere. If they sell the car under the KBB value and say your mom still owes, you could report that online to other consumers. It will at least help others to make decisions in future.