Today most people have an automobile. You depend on your vehicle to get you everywhere. The payments on the vehicle must be made on time. When you fall behind on your payments, you may be found in default and added to the Auto Repo list. In some states, you can also be up for auto repo if you do not have insurance. Repossession is when your creditor takes your vehicle away from you. They are permitted to do this without a judge’s approval and any warning to you. If your loan is sold to a third party assignee, they have the same rights as the original creditor.
Your creditor’s rights are limited to a degree. There are rules on where and when they can repossess the vehicle. Requirements for the resell of the vehicle and how those funds are applied to the loan to reduce it or eliminate it must be followed. If the creditor violates any of these rules, they could lose any rights against you that remains. They may even have to pay you for damages along with other fines.
Your vehicle may be repossessed as soon as you default in some states. To repossess a vehicle, they can get it at any time and place. It is ok to come on your property to get the car. However, it is against the law to commit what they call Breach of Peace. This means they are not allowed to threaten you in any way. Using force and threatening force are forbidden. So is removing a vehicle from inside a closed garage.
Once they have the vehicle, it is then sold to try to collect some of what is owed on the car. In some states, you have the option to buy back the vehicle, but this is not true in all states. The only way this will happen is if you pay everything owed on the title plus repo fees and other charges made. This includes any fees incurred to get the vehicle ready to sell. The law allows the creditor to sell it in any reasonable manner. This means they do not have to try for the best price or even a decent one. Once the vehicle is sold, the proceeds from the sale are to be applied to the balance owed. You may still be held responsible for the difference between the proceeds of the sale and the amount owed.
If there are personal items in the car at the time of repossession, the creditor can not sell it or keep it. They must make every reasonable effort to get your things back to you. Auto repo is not pleasant for the repo man or the owner. Hiding the vehicle or taking measures to keep it from being repossessed will only cost you more in the long run. At Repo Finder, we can help you find a repossessed vehicle to buy if you want to replace your current vehicle. You can get them inexpensively, many for under one thousand dollars.