What Happens If I Stop Paying My Solar Loan
If you stop paying your solar loan, several consequences may occur, including: Damage to Credit Score : Missing loan payments will likely lead to negative marks on your credit report, which can significantly damage your credit score. A lower credit score can make it challenging to qualify for loans, credit cards, or favorable interest rates in the future. Late Fees and Penalties : Most loan agreements include provisions for late fees and penalties when payments are missed or overdue. These additional charges can increase the total amount you owe and make it more difficult to catch up on payments. Risk of Repossession or Foreclosure : Depending on the terms of your loan agreement and applicable laws, defaulting on a solar loan could result in the lender initiating repossession or foreclosure proceedings. This means they may seek to take ownership of the solar equipment installed on your property if you fail to make payments. Legal Action : Lenders have legal remedies available to them