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May 21st, 2012 by Admin No one in their right mind would allow their cars to be repossessed, if possible. However, until you pay the loan of the car-and any goods for that matter-in full, it isn't considered legally yours but still in the ownership of the creditor who can turn your unpaid wheels into a repo car to at least get back some of his money. |
Having a car repossessed is a killer. Not only will your vehicle be embarrassingly towed from you but you'll still have to pay the remainder of the loan. This sucks, big time! And it doesn't stop there. The repo man can take your car anytime, anywhere, as soon as he gets the chance. He can do this while your car is parked in a lot while you're out shopping. The banks are allowed do this even without prior notice. They're not really required by law to do that because it's their property after all. Hiding the car, disguising it or any act preventing the acquisition of the car can spell trouble and a lawsuit for you.
What's ironic is that the repo car man is following orders from the creditor but in fact, you're the one paying him. Yes, you're giving him money to take your beloved car away.
Since preventing car repossession can become a criminal offense, it's better to take action before the actual seizing happens. This way, you'll save yourself from the accompanying stress and shame a towed car can give you.
If you're already lagging behind payments, it's good to negotiate with your creditor and try to come up with a bargain that both of you agree with. A monthly payment that's realistic given your budget can be haggled with-and this time, stick with that. Otherwise, the creditors won't trust you again and will repossess your car without you even knowing it.
If negotiation didn't go as planned, selling the repo car in an auction can help you get back some of the money and be able to pay a fraction of your debt. After the sale, your bank may now be able to work with you on the remaining balance.
When all else fails, refinancing the loan will shut them up. A home equity loan or a home equity line of credit-if you own a house-can settle your account but remember to pay it back or else you'll be living in your repo car.
If you consider this an option, you can file for bankruptcy. This is a very drastic measure, however, and needs to be given a lot of thought. If you don't want to resort to this, cut back on your costs and follow a well-devised plan on spending your money to prevent making a repo car.
