Vehicle repossession occurs when a creditor or lender takes back the vehicle when you miss payment (or payments) or failure to complete all other provisions of your loan.
If you believe your vehicle will be repossesed, contact your lender and see if you can come to a new agreement. You must ensure that you monitor your payments.
Depending on your circumstances, a the court could order a vehicle repossession. The exact procedure depends on the law of the state where you are residing (Idaho or Washington Law). Sometimes, the creditor does not have to wait for the court order; they will just take it back even for just one missed payment.
Before vehicle repossession happens, you have to be prepared for it. Check your money and manage it properly. And if given the chance to have another part time job or another source of income, grab the opportunity. Be thrifty and save for the rainy days. If possible, lessen your everyday expenses and raise or improve your monthly income.
But if you cannot adjust your finances, they will again end up missing payments and end up in a a vehicle repossession situation.
A few things to think about:
-There is what we call voluntary repossession – which means that you may hand back the vehicle to the lender. It will not only save you from pressures and burden of not knowing if you car will be outside, you can also save the repossession fee plus the lender might put aside your remaining balance and may not report it as a repossession on your credit report.
-You may choose to sell the vehicle if you can get more than you what owe on the loan.
-You can always contact your lender and make some agreement and arrangement or call your lawyer and ask for assistance.
Now, remember that in most vehicle repossession cases, the creditor does not want or need the vehicle. They only want the payment from you. That is the bottom line.
Do not be afraid and hesitate to contact your lender and work things out. Do not wait for them to go and repossess your vehicle back. You can always explain your situation.
They may understand you and be willing help you become current again. However, they do not have to. You lose nothing by trying, so just give it a try.
If you need assistance and guidance to prevent you from vehicle repossession situation, contact our office at (509) 927-3840 for a consultation regarding your options.
Some banks will be willing to negotiate with you and some will simply take the vehicle back. In times of bad economic conditions, banks are becoming much more willing to help consumers keep their cars and their property.