Dealing with a Car Repossession on Credit

By
Mortgage and Lending with Indigo Financial Group Inc.

If you fall too far behind on your car payments then a car repossession may occur on your credit reports. That is where the creditor will take your car back from you since an automobile loan is a secured loan. The loan is secured by the automobile.

If you are behind on your payments, but your car has not been repossessed as of yet and you see no way that you can catch up your payments or arrears, then you should become familiar with the repossession laws of your state in which you preside. You may not hide your vehicle to avoid repossession or you can face criminal charges for doing so.

You can still get your car back once it has been repossessed if that is something you are interested in doing. Of course this all depends on your original finance contract and / or the lender you are dealing with. Please check with the rules and bylaws of your state as they will override whatever the lender might be telling you.

In most states, the creditor can repossess your car without notice even if you are only 1 day behind! Of course if you have a grace period in your contract then they will have to wait longer than one day to repossess your vehicle. It is important to understand that in most cases, the lender does not want a depreciated asset back (your vehicle) they would rather have their payments.

The most important thing you can do as a consumer that is falling behind on your car payments would be to make sure you keep in contact with your creditor. Most of them are willing to work with you as again, they would much rather have your payments then a car that is worth less to them then what you owe on the note. Secondly, become very familiar with your states repossession laws as they can differ considerable depending on the state you reside in.

If you already have a car repossession on your credit reports then please visit my car repossession on credit information page that explains the process of removing a repossession from your credit reports.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Indiana St Joseph County
Tags:
car repo
repossesson on credit
remove a repossession
credit
credit repair
repair credit

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the computer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
340,047
Robert May
Verico Canada First Mortgage/ Rainbow Realty - Lethbridge, AB
Real Estate Expert & Mortgage Broker- Lethbridge

you are correct, banks want to own cars even less then they want to own houses.  They will work with you to avoid taking it back if possible.

Dec 28, 2008 02:30 PM #1
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
7,299

Shayne Sherman

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information