Final answer:
Jake ended up with a deficiency balance, which is the money still owed after the sale of his repossessed car didn't cover the full loan amount and fees.
Step-by-step explanation:
Jake's car was repossessed and sold. The amount of the sale did not cover the amount of the loan and fees. He ended up with a deficiency balance. This is the amount of money that remains due after the collateral, in this case, a car, has been sold and the sales proceeds have been applied to the loan balance and additional fees associated with the repossession. Jake is still legally obligated to repay this remaining debt unless he comes to another agreement with the lender, such as a settlement. In some cases, lenders may choose to forgive part of the deficiency balance, but typically, Jake will receive a demand letter requiring payment or the lender may take legal action to recover the owed amount.