[pickle00]

My question involves an auto loan or repossession in the State of: Arizona
Along with the rest of the American population, my family has fallen on hard times. I have had to take a pay cut from work with the result that I am now paying out more in bills than I am making. My wife and I have talked about voluntarily surrendering our lease. I still owe about $3600 to pay off the third year of my contract. When I spoke with Ford Credit, they said that even though it is a lease, they would treat it like a normal repo and send it to aution. I would then be liable for the price gap between the auction price and the amount of the car if I wanted to buy it. This does not make sense to me. If I only owe $3600, isn't that all that they can come after me for? Also, if I am sued for the money, but am unable to pay, can they come after my house or garnish my wages or would they just harass me about it for a few years?

[OhMy]

My question involves an auto loan or repossession in the State of: Arizona
Along with the rest of the American population, my family has fallen on hard times. I have had to take a pay cut from work with the result that I am now paying out more in bills than I am making. My wife and I have talked about voluntarily surrendering our lease. I still owe about $3600 to pay off the third year of my contract. When I spoke with Ford Credit, they said that even though it is a lease, they would treat it like a normal repo and send it to aution. I would then be liable for the price gap between the auction price and the amount of the car if I wanted to buy it. This does not make sense to me. If I only owe $3600, isn't that all that they can come after me for? Also, if I am sued for the money, but am unable to pay, can they come after my house or garnish my wages or would they just harass me about it for a few years?

You are taking a big risk here.

Anytime you turn in a vehicle early it will be treated as a repo which will cause a very low FICO score.

In addition, they can do just as they said, take you to court for the shortage which can be will in excess of $10,000. Once they obtain a judgment, then they can garnish your income, bank accounts and it would be a standing lien on your home.

See if you have a way of selling off the car and paying off the lease OR see if you can somehow handle the payments.

You can end up spending more per month and NOT even have the car to drive then you do now and it will ruin your credit and garnish your income