If the lender has a lien on the car, they sell it to cancel the debt.
if your lender is not covered by state or federal exemptions, they can take steps to seize and sell certain items of property that are exempt from seizure. before taking any of these steps, the creditor must provide notice to anybody with either an interest in or a lien interest on all property of which there appears to be enough value for sale proceeds to pay off the debt owed. the creditor also must send notice of intent through u.s mail, together with a statement setting forth requirements for validation against public records about how somebody could claim their rightful ownership of property being repossessed.
the ucc says that anyone with an unsatisf
do you still owe after a repossession?
yes.
you're not obligated to keep up with the payments on a car that's been repossessed unless you agreed in writing or at a verbal understanding that you would pay off the rest of the balance. and then only if the prior agreement was made before your loan was turned over to collections, otherwise, all rights revert back to your lender after it's been repo'd from you and sold at public auction. therefore, unless an additional payment plan for completing payments was set up in writing or verbally even after it has been repo'd from you and sold at public auction — no further obligations exist for repayment of any kind on that loan. hope this helps!
what do you do when your car is repossessed?
if your car is repossessed due to nonpayment, make sure you handle the issue by contacting the company immediately.
steps to take in order to resolve repossession issues are as follows-
1) check your records and see what was paid last so you can pay that back first.
2) ask for a payment plan agreement with the loan holder.
3) try speaking with them because they might be willing to work out a deal with you since it was not intentional. they may even negotiate and overlook part of what's owed and offer an interest rate reduction on future payments. this directly depends on how well it went when negotiating the original agreement but its worth a try since they send people this way all day
how bad does a repo hurt your credit?
it depends on the severity of the repo.
this will depend on the lender and whether or not there are any other loans on your credit profile that will cause more harm than good. repo is less detrimental to your credit score than defaulting on a payment, but it can still take many years for things like late payments to disappear from your overall credit score if you don't make good habits like paying on time, having low balances, or making timely payment arrangements with lenders happen. to protect yourself against repo, it might be worth talking with lenders about an arrangement for monthly repayment schedules that build into a reasonable term with little interest over time before you lose access to money.
possible
where does your car go after being repossessed?
well, it might depend on state law. let me offer you a few examples of how this happens in different states.
in colorado, the car is typically auctioned off to the highest bidding dealer or individual with title to be transferred following confirmation of good funds on the purchaser's part.
in connecticut, vehicles are sold without notice on any open auction day at least 60 days after repossession.
in delaware, vehicles are usually sold at public auction five or six months after being taken into possession if they have not been paid for by then.
brookelynn wade co-ceo & president of olrap (open legal representation for protection) says “if an individual can't pay their debt and they
