Let’s face it, when you default on your financial obligations, the lender will use the courts to take back property that is secured by a loan. If want to keep your vehicle because you were set back do to temporary financial problems, there are multiple technique’s you can try to prevent a car repossession.
Car repossession secrets revealed – How do I stop the bank from taking my car
- If you can’t afford the vehicle, try to sell it and pay the difference in your loan.
- You can also refinance it if possible.
- Ask your lender if you can add the delinquent amount to the end of the loan.
- Voluntarily surrender it to avoid the car from being repossessed. If you let the repo man take the car, two things will happen. There will be more fees involved because the bank had to hire a company to come out and pick up the car. And the word repossession will be placed on your credit report, which is more damaging than voluntary repossession.
Car repossession secrets revealed – How can I get my car back?
According to the law, you have a certain amount of time to reinstate the vehicle. Call the bank and ask them how much time you have to pay the back payments, late penalty and repossession fees.
Car repossession secrets revealed – What if I owe a balance on my car after the auction?
Once your repossessed car has been sold in the auction, you will receive the deficiency amount (the amount you owed from your original loan minus the auction sale price and fees) from the bank. You can try to settle the debt for 20 cents on the dollar. You can also set up a payment plan to settle the balance, and then subsequently challenge the item. If you don’t posses the money to pay, it will go to a collector and possibly to court if it’s a large amount. If this happens, follow the strategies used for collection agencies and judgments. See nfa.org for car repossession laws in your state.
Car repossession secrets revealed – What if I’m sued for the deficiency amount?
Find a good lawyer to represent your interest. Once you have found a lawyer, talk with him or her about the various arguments listed below. These defenses can be used to cancel the deficiency amount.
Car repossession secrets revealed – Arguments you can use:
- You have evidence that the mileage disclosure was false.
- The car sale was not commercially reasonable according to the law.
- The dealer failed to display the Federal Buyers Guide as required by Federal Law.
- Upon financing, you did not receive a completed sales agreement in a format required by the Federal law.
- Most state statues list a category of deceptive trade practices (Check your state statute to see if the dealer or the creditor violated any of these practices).
- If your car was sold with a written warranty and was taken back to the dealer for repairs, you may have an argument if the dealer refused to fix it.
- Any breach in warranty is considerable.
- The creditor did not send you a written notice advising you that they would sell the car, and that you would have a certain amount of time to redeem (pay off) the vehicle before it was sold.
- Dealers are required by law to let you know that the car was either wrecked, rebuilt, salvaged, stolen, water-damaged or a buy back lemon. If they did not disclose this information, and it caused you some type of damage, you can use this as an argument.
- Some states require dealers to inspect the engine and drive train on cars purchased after October 1, 1997. The dealer must give the buyer a written disclosure of any defects. If your car breaks down after you leave the lot, then you can use this argument because the dealer did not disclose the problem with the car.
Car repossession secrets revealed – How do I get late car payments off of my credit report?
You want to make the lender prove that you were late for those days indicated on your credit report. Call the loan company and ask them to send you proof that you were behind on your bill. If they can’t provide you with proof, contact the credit bureau by letter and advise them that the bank has not provided you with proof and that the late entry should to be deleted from your report.
As you can see there are multiple techniques you can use when it comes to dealing with a car repossession, so take your time and apply the technique that fits your situation.