I accepted the car as a collateral for a personal loan 3 years ago. It is registered and is driven in CA. The buyer of this car currently lives in VA and plans to default on the remainder 12 mos payments, citing financial problems. I have offered to assist w/ the loan payments under the condition that the title of this car will be surrender to me via a written agreement: notarized letter to no avail. The buyer of the car, and borrower of the car loan balked w/ plenty indignations. He then stated that let the car be repossessed as he could careless about his credit history.
What are the relevant impacts and ramifications that I should be aware of if this guy goes ahead w/ his plans of loan default? What are the typical repo procedures and how can I protect myself?
Thank you for reading.