Vehicle Repossession – Everything you need to know.
A personal vehicle is a necessity for everybody and is one of among top big expenditures. Chances are, it is bought on finance. This also brings the dangers of repossession by the finance company or the creditor. After leasing or availing finance for a vehicle, the creditor has certain rights till the debt is repaid. These rights also include repossession of vehicle in case of default.
Creditor has the right to repossess or take back the vehicle without any prior notice or warning and even from your own property. The law, however, vary from state to state. According to some law, your creditor can also sell the bond to someone else, called as the assignee. This also inherits all rights from the creditor to the assignee.
Repossession can be voluntary or involuntary. Former, is when you give the car back to the lender. Later, is when they come to take it back. Some state may allow them to take it from the owner’s property without permission. However, they must do it without disturbing you or the neighbor. In some states, breaching the peace of the society could mean aggressive threating and using physical forces. This also limits them from repossessing the vehicle from your closed garage. In such actions, they are entitled to pay for your damage. This gives you the advantage to use it during the deficiency lawsuit.
Creditors are not entitled to keep any personal property found in the vehicle. They must let you know, what items were found and how you can retrieve. If you do not claim your property, eventually it will be considered abandoned and will be disposed of.
Your Credit Score:
Repossession will have a derogatory impact on you credit score. The fact that you have defaulted, this may damage the credit score. It will further be listed in the public records of the credit report. In case the lender obtains deficiency judgment, it will be added to the credit report too. They will remain in the report for up-to 7 years.
Getting Your Car Back:
Even after a vehicle repossession, you can get the car back if the lender hasn’t sold it yet. You can redeem the car by paying the balance debt including additional repossession charges. However, it is uncommon among the buyers.
Furthermore, you may be allowed to reinstate the car by paying off the arrears and other charges. You need to continue paying your regular debt amount.
When being sold in the auction, you could bid to buy it back. However, you will still have to pay the deficiency balance.
A vehicle repossession is common in America. Millions of cars are being repossessed every year. Moreover, it has extended to all sorts of goods like electronics, boats, equipments and more. As the stakes are high and it will cost you your credit score as well as reputation, repossession must be avoided at all cost.