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Question
a person did not make two consecutive payments on her automobile loan. the creditor has the legal right to seize and sell the persons car. this is because the auto loan lender has
○ a lien on the car.
○ garnishment rights.
○ foreclosure rights.
○ a used car business.
An auto loan is a secured loan where the car serves as collateral. A lien gives the lender a legal claim to the collateral (the car) until the loan is repaid. When a borrower misses consecutive payments, the lender's lien allows them to seize and sell the car to recover the owed amount. Garnishment involves withholding wages, foreclosure applies to real property, and a used car business is unrelated to this lender right.
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a lien on the car.