What does it mean when a vehicle's status is seized?

[GiaMarie]

There are three situations when a vehicle's status is seized. 1. Enterprise debt: Some corporate vehicles are registered under the company's name. If the company owes money to another company, it is often sued, and all assets under the company's name will be seized for liquidation. 2. Default on auto loan: This refers to the commonly known bank-mortgaged vehicles. If the owner pledges the car but fails to repay the bank loan, the bank will first contact the owner. If the owner defaults or goes missing, the bank will initiate legal proceedings, sue in court, and apply to seize the vehicle's records, prohibiting its transfer or sale. If the amount owed to the bank is not substantial, the vehicle will not be locked and can still be driven normally and undergo annual inspections. Of course, zero-down-payment vehicles are an exception. 3. Vehicle seized for debt repayment: This is straightforward—the owner owes money to someone, the creditor sues the owner, and the court will seize all assets under the owner's name as security: seizure.