Know Why Car Repossessions Take Place
Lenders repossess cars arises when borrower misses monthly payments and fail to elicit favourable responses from borrowers. When a vehicle is financed under a loan agreement, the lender has total rights over car title until the dues are paid off completely. To that effect, if borrower defaults on car instalments, car repossession becomes a probability.
In a typical process for repossessing of cars, lenders seize vehicles and while doing so, they may not even be required to inform the borrowers. In the meanwhile, borrower does have the chance to get back the car which has been repossessed. If all actions do not bring results then lender will sell the car.
- You can think of redeeming the car by paying off all the loan dues along with repossession costs prior to your lender taking any action to sell the vehicle. That is possibly the best course of action to be followed.
- In case, you are unable to repay missed payments or the unpaid balance then you can contact your lender for working out a negotiated arrangement that is strictly between you and your creditor. This might help you to keep car.
- If all actions fail, it could be advisable to consult a bankruptcy attorney. You can consider filing chapter 7 or chapter 13 bankruptcies, some states allow debtors retain cars or court may ask creditors to modify terms of the loan.