Buying a new car starts out all well and good, but after a while, if life events can snowball into an avalanche of financial struggle and the first thing to go might just be the car.
Repossession is an ugly beast that preys on the less than financially stable. For those dealing with repossession, know that the situation might not be as dire as it appears to be and there are ways through which to combat repossession.
Repossession can happen for a number of reasons, not just because of an inability to make monthly payments. If there’s an insurance coverage stipulation that hasn’t been met, that too can be reprehensible via repossession. With that in mind, it’s important to understand first and foremost what happened to cause the repo man to haul away your beloved. Call your lender and find out the exact reason.
Getting the car back after it’s been repossessed seems a bit difficult because it usually requires you to pay off the loan before the car is sold at a repo auction. However, you may be able to not only get the car back but return to your original loan, with a chance to rework the terms. In other words, you could get your car back and renegotiate the monthly payments.
This would be a handy option if you had your car repossessed is for reasons other than an inability to make the monthly payments. If it is the case, payments became too much, then maybe allowing that car to move on might be a decent option. Bear in mind that this option won’t erase the repossession from your credit history.
Repo men aren’t allowed to barge onto (or into) your property to repossess the car. If you suspect that they did, in fact, do that, then you should call a lawyer.
If the car is gone and there’s no chance of getting it back, then make sure you don’t have an outstanding balance on the car. Just because the car sold at auction doesn’t necessarily mean it was sold for the same amount of your loan.
The act of repossession costs you money as well, so be aware that you may end up paying more than the difference of how much the car sold vs. how much remained on the balance. At this point, it’s likely the loan went to a collection agency, so be sure to contact the agency consistently until you get your answer.
If the car is repossessed, and it’s gone from your life for good, pick up the pieces and build your credit back up. It’s certainly not the best situation to be in, but it’s by no means impossible to recover from. Focus on paying off the rest of the loan and then start again.
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