Generally vehicle owners don’t simply choose to stop making payments on their cars so that they will be repossessed. Typically what happens is that there is some type of a change in the individual’s financial situation that prevents even the most financially responsible consumer from being unable to make their car payment. Some of the issues that can lead to a missed payment or payments include:

Illness or death in the family
Loss of employment
Disability
Personal tragedy

Thankfully most lenders are more than willing to work with consumers and borrowers through problem times, however all consumers that are behind in payments or are going to miss payments on their vehicle should be aware of car repossession laws in their state. Car repossession laws have to be followed by the repossession company or you, as the consumer, may be able to go to court to sue for damages or to limit or eliminate any deficiency payment that the lender may be requiring.

The first concept that consumers should be aware of is that under car repossession laws until the final payment is made on the vehicle, often called the title transfer, the consumer is not the owner of the car. The owner of the loan, typically the dealership, has the right of ownership and the consumer has the right of possession. This means that the owner (dealership) has a right to take back the vehicle if the loan agreement is not honored. It really doesn’t matter if you default on the first or last payment, until the loan is paid as per the signed agreement, the lien or loan holder can repossess the vehicle for non-payment. The number of payments that must be missed to start the repossession should be clearly stated in your loan or financing agreement.

Another key concept is that each state has their own car repossession laws and not all states are the same. In some cases the dealership must go to court and get a judgment to proceed with repossession and the owner is notified of the hearing and can appear in court on his or her behalf. In addition the owner is notified of the pending repossession. In other states there is no judgment needed, nor is the creditor required to let the consumer know that they are repossessing the vehicle. Understanding what your state requires with regards to notification is an important part of the car repossession laws.

Once the vehicle is seized it can either be sold at auction or retained by the creditor and evaluated at current market value. Car repossession laws prohibit the creditor from selling the car at a below fair market value or giving you less credit that what the car is worth as per industry accepted prices. If this happens the consumer can take the dealership to court in order to have the deficiency payment lowered or even completely removed by the judge or through a hearing.

Understanding Car Repossession Laws is a post from: Foreclosure Guide

Just like most reputable and reliable dealerships, the Galpin Ford voluntary repossession department is there to assist consumers in returning vehicles when they can no longer afford to make the required payments. It is important to communicate with the staff at Galpin Ford voluntary repossession department prior to any delinquency in the payment as often a modification in the contract or loan agreement can be completed which will prevent the need to move forward with either a voluntary or involuntary repossession of the vehicle. This is especially true if your financial problem has been resolved and that you can’t foresee any future problems in making payments. Working with the Galpin Ford voluntary repossession department proactively is far better that waiting until you have no options left and then surrendering the vehicle.

Usually when working with the Galpin Ford voluntary repossession department or any other dealership financial department the first option is to try to modify the repayment plan to meet your needs. Since most dealerships would rather avoid doing a repossession, even voluntary, you may be surprised at what they are willing to consider. Always be reasonable with your budget and don’t promise to make monthly payments that are not possible, this will result in a second default and may make repossession the only option the dealership will consider.

Keep in mind that any voluntary repossession, which means that you bring in your car and surrender it for non-payment of the loan, is going to be a negative on your credit score. The Galpin Ford voluntary repossession department staff will explain this to you, however you should be aware of the consequences to your credit record before you make this decision. Talking to a credit counselor before making the decision is important, especially if you already have paid into the car for a large part of the loan period. Keep in mind that the car has dramatically depreciated in value in the first year, so even if you turn in the vehicle and they sell it or value it at a higher than average market value there will still likely be a deficit between the value of the car and the total amount of the loan plus the interest and fees. Even with a voluntary repossession you, as the borrower, will be responsible for paying that difference. If you had a friend or family member co-sign for the vehicle, he or she will also be negatively affected through their credit score and will be held legally responsible for the deficiency payments.

Working With The Galpin Ford Voluntary Repossession Department is a post from: Foreclosure Guide

It is a good thing when we can realize the American dream of home ownership. Along with the home ownership comes a lot of financial responsibility. Unfortunately due to circumstances some people may find themselves unable to maintain the biggest responsibility; the payments. When the homeowner is unable to keep up with the payments he is at risk of house repossession.

When and if the legal action of house repossession is started it will occur in several stages and can take weeks or months to from start to finish. At any stage during the process the homeowner may be able to stop the process. If the homeowner can bring the mortgage payments up to date the process will immediately end. It is actually to the advantage of the mortgage company to keep you in the house paying off your mortgage and house repossession is usually a last resort for them. The quicker action is taken once the process has begun the more options and lower legal fees for the homeowner. Each stage has its own rules and procedures and if they are not followed the house repossession may not proceed as planned.

For a house repossession to occur there must be a sound legal reason. The most common reason is for delinquency of mortgage payments. The lender will work with the homeowner to try to refinance, modify the mortgage or come up with some other repayment plan. Once the lender plans to go forward with house repossession a letter requesting that the payments be made current will be sent to the home owner. If the issue is not resolved at this point the lender will then send a letter informing the homeowner of the possibility of court action. If no resolution comes from that action, the homeowner will be notified of the court order seeking possession of the house.

The court will notify the owner if the time and place of the hearing. At this time if the owner has not done so previously, it would be a good idea to seek qualified legal advice about the situation. The homeowner must reply to the courts; failure to do so would not be in the best interest of the homeowner. The homeowner should obtain legal counsel to represent them in court.

At the hearing the judge will listen to both sides and a decision will be made as to what should happen next. The judge has several options, some of which include allowing the homeowner to stay in the home under certain conditions, like repayment of the arrears; allowing the homeowner time to avoid house repossession by selling the house themselves or the judge may follow through with eviction.

If the judge decides to allow the house repossession, the homeowner will be given a date to vacate the house. If they do not leave voluntarily by the date set, the lender may have law enforcement to assist in having the house vacated.

House Repossession: Does it Have to Happen? is a post from: Foreclosure Guide

There are several different considerations when it comes to understanding mobile home repossession. The first consideration is whether the loan used to obtain the mobile home was a personal loan or an actual home mortgage. Generally if the buyer of the mobile home owns the property the mobile home is on it will be a mortgage, however if the mobile home is on a rented lot such as a mobile home park then the loan for the home is a personal property loan. With both types of loan options, the mobile home repossession will follow the same basic steps once the loan payments go into default. Prior to that final step, a mortgage loan will require pre foreclosure and foreclosure whereas a personal property loan can result in a mobile home repossession just like any type of vehicle or property repossession.

The basic facts on mobile home repossession will be standard in most states, but be sure to check the specifics in your area with an attorney. The following points are general information on mobile homes and repossession:

Once the mobile home is repossessed the lender can sell the home at a public auction. As the loan holder you will be required to make up the difference between the loan amount and the sale price on the mobile home. You will also be charged all repossession fees and legal fees incurred by the lender to complete the repossession process.

If the lender has the mobile home cleaned, repaired or hires an auction service to sell the mobile home you will be responsible for the cost of all these services as part of the deficiency payment.

Mobile home repossession can sometimes be prevented through filing for bankruptcy. In some cases you may be able to retain your home and pay a much smaller monthly payment over a longer period of time with this option.

In cases where the mobile home is sold through a repossession sale and the deficiency payment is ordered, non compliance of this order can result in the lender being able to garnish your wages; up to 25% of your total pay. This will apply to anyone that had their name on the title, regardless if they were living in the home at the time of the repossession.

Typically with mobile home repossession on a rented lot the landlord of the trailer park will want to have the mobile home removed off the lot as it is not making the park any money since the lot fee is not being paid. Usually when this happens the people on the title will be responsible for any moving fees through the lender, who will arrange for this to happen.

Selling is an option to prevent mobile home repossession, however keep in mind that these homes tend to have a very low resale value and will typically result in a high deficiency payment, but this will still be a better option than repossession for your credit record.

Facts On Mobile Home Repossession is a post from: Foreclosure Guide

There are many different legal issues which individuals that have repossession businesses or individuals that are facing the possibility of having something repossessed need to be aware of. Each state has individual and different repossession laws, so it is important to be aware of what can and cannot happen with regards to repossession.

Basically any type of repossession occurs when someone owes money on a tangible item and the borrower has defaulted on the payment. These types of repossessions can occur because the borrower actually has a form of a secured loan with the item itself being used as collateral. Since this is a form of a loan, the purchaser who is also the borrower, really is not the owner of the item until the loan for the item is paid in full. The lender actually, in legal terms, continues to be the owner until the note is paid off in full. This allows the lender (with right of ownership) to take the property back without having to go through the court to get a judgment against the party with the right of possession.

Usually most companies that offer equipment, vehicles and other large items don’t actually do the repossession, rather they hire a specialized company to go out and collect the property. Even in states where repossessions can be done through these companies, there are still legal precedents that limit or structure the ways and means that the company can use to get the property back. In most states the following legal issues are in place regarding the repossession process:

The borrower must be made aware that the loan is outstanding and must be informed in the original loan agreement that default on the loan of a specific number of payments will result in repossession action by the lender.

The individuals completing the repossession cannot commit any illegal acts or cause a breach of the peace in regards to obtaining the item. They cannot break into a house, garage or property that is secured to obtain the item.

The company or agent cannot damage anything to obtain the item. This means they cannot pull items out of a house and put a hole in the wall or the kitchen cabinets or otherwise damage the property while removing a stove.

The creditor or the repossession agents cannot threaten to or actually remove any property other than the item you owe money on. This means that they cannot, for example, take a boat that may be on a trailer that is attached to a truck that is being repossessed.

In the United States if a repossession company breaches any of these laws the repossession can be overturned through a court of law and the individual can also be awarded damages.

Legal Issues In Repossession is a post from: Foreclosure Guide

There is a lot of information, but also a lot of misinformation, about various types of repossession. Houses and other types of properties, like anything else that is bought through a loan or financing, is subject to repossession. Houses and properties typically have a much longer grace period or pre foreclosure period prior to the actual foreclosure and repossession than smaller items such as car, electronics or appliances. Since houses are much larger and many times more money that other items subject to repossession there is absolutely no need for a quick repossession. Houses are typically best managed if the current resident, commonly called the owner, can stay in the house and manage to either refinance the loan or get a modification on the loan.

As with any type of repossession, houses and properties can only be seized under very specific conditions. The loaner or lender must notify you, usually through a registered letter, that the payments have not been received as per the financing agreement. The lender should supply a record of payments and what balance is outstanding, the description of the property and the physical address, your name and information as well as what the lender is requiring to happen to prevent the foreclosure or repossession. Houses going into this pre foreclosure stage may also be listed on various pre foreclosure websites, so the owners should be prepared for a flood of letters, postcards and even phone calls to purchase the property or to refinance the loan.

Owners at this time need to seriously consider their options and to contact the lender to try to work out a plan for repayment and modification of the loan. Lenders typically will work with the homeowners to prevent having to go all the way through to foreclosure and having to repossess the house. Lenders are much farther ahead taking a lower monthly payment over a longer period of time than the original loan then they are trying to sell the house once it has been repossessed, especially in a downward housing market.

You may also file a hardship letter or a specific claim form that is provided in the information sent by the lender. It is important to appear at any court hearing to explain your situation and get your options for resolution on the record if you are given the opportunity. Getting an attorney is also important in the case of repossession. Houses and properties that are subject to repossession are typically handled by a real estate attorney that specializes in foreclosures.

What You Need To Know About Repossession: Houses and Properties is a post from: Foreclosure Guide

While there are lots of fairly easy to find and surprisingly easy to understand legal websites out there, reading through a few quick FAQs about repossession law is often all that most people need to get a general idea. Whenever you are in a situation it is important to get legal advice on repossession law as it does vary from state to state. In addition the specific repossession law that applies in your situation will vary depending on the type of item that is being repossessed as well as the terms of your agreement with the lender.

The following are general information questions about repossession law issues that apply throughout the United States:

1. If something is repossessed, do I still owe any money or is my debt cleared?

Repossession does not clear your debt and in most cases it can actually add to the amount of money that you owe the lender. The lender must credit you for market value of the item, however that will be the used price, not what you purchased it for. In addition you will have to pay legal fees, repossession charges and even the legal fees the lender incurred in the repossession paperwork.

2. I have made almost all the payments on my car and I heard that it is no longer possible for the dealership to repossess the vehicle. Is that right?

Unfortunately that is not correct. The lender has the right under the financing agreement that you signed and the repossession law to take back the car any time the note is in default up and until the final car payment. The lender actually holds the title to the car until that final payment is made, technically making it his or her property.

3. Can a repo agent take my car from my place of work?

Yes, they can. Often repossessing a vehicle at your place of work is a typical repossession company strategy. It prevents issues with going on your private property and it also tends to be less confrontational and less likely to result in someone calling the police.

4. If the property the repossession agent wants is in my house, can they come in without my permission?

No, the repossession agents cannot do anything illegal such as entering your house or residence using force or against your consent or permission. They cannot breach the peace or break any laws in the completion of the repossession or you may be able to take them to court for damages.

5. Do lenders really work with consumers to try to resolve non-payment issues?

Generally most lenders would rather work with people than go on to repossession. If you know you can’t make a scheduled payment call the lender, explain the reason and have a plan to present on how you can repay the defaulted payment and get back on track. Talking to the lender as soon as possible and up front of defaulting typically results in a better solution for both the lender and the consumer.

Frequently Asked Questions About Repossession Law is a post from: Foreclosure Guide

When you are facing the possibility of any type of repossession it is always tough to calm down and do the research you need to find out what repossession laws apply to your specific situation. It is also common to resort to rely on information on repossession laws from family, friends and even co-workers who are not usually well informed and truly knowledgeable on the subject.

In reality not all items are subject to the same types of repossession laws and each state has their own specific repossession laws. It is not reasonable to think that repossessing a house would be the same as repossessing a car or a computer system that is not being paid for. Generally most states provide a longer grace period or resolution period for higher priced item such as houses and properties and shorter grace periods for cars and appliances or electronics. In addition the contact that you signed with the seller regarding the payment plans, fees and repossession terms are also considered as part of the legal issues around a repossession. In some contracts even one missed payment may be grounds for starting the repossession process.

Each state has their own specific repossession laws and legal requirements for seizing property or possessions. It is important, as the consumer, to understand what the repossession company can and cannot do to take back the item, as if they don’t do it right you may be entitled to compensation and damages. Ideally each consumer that is facing repossession or has had something repossessed should consult with a qualified and licensed attorney to find out what repossession laws apply in their situation and if any legal issues were breached during the process.

Some states require that all repossessions be filed through the court and the borrower or consumer provided notice of a pending repossession. Other states allow the lender to start the process immediately upon breach of the purchase and finance contract; without notification to the consumer. Knowing which option is legal in your state is simple, just use any search engine to look for sites using the search terms of your state name and the phrase “repossession laws”. In addition research books at your local library or contact the Better Business Bureau in your area that can provide specific information for your state as will as the type of property you are facing repossession on.

It is critical to use only the information provided on repossession laws for your state and the type of item that is in default payments. If you have the incorrect information you are more likely to make poor decisions that may end up costing you more money in the long run.

Where To Find Repossession Laws is a post from: Foreclosure Guide

Repossession is an unpleasant thing. The consumer doesn’t like having their things taken back and most companies don’t like having to hire someone to take them back. Consumers and companies both deal with the stresses and costs of having things repossessed. Recent information shows that there is an increasing need for repossession service companies across the United States.

Repossession service is usually needed when a consumer fails to make payments for an item that is being bought in installments. An example of that would be buying a car on credit, as it is not officially owned until all payments have been completed. A repossession service could be used to
take the car if the consumer stops making payments.

If a consumer has an asset that they already own, it could still be repossessed if it is being used as collateral. A common example of that would be a dept consolidation home equity loan; the home is being used as collateral. If payments were to cease on the loan the lender could and probably would seek a repossession service and repossess the home.

Any company that is has customers causing them to lose money due to non-payment may want to consider repossession service. The use of a professional repossession service may be the best way for a company to recoup some of its losses. Taking this course of action will ensure the legalities and effectiveness of the repossession. Companies looking to hire a service should look for several things:

Affordable repossession service. The prices for the service can range widely. The company is already losing money so being cost effective is important.
A company that is bonded and well insured.
Repossession service that is in compliance with state regulations if there are any. Some states have very strict regulations while some states have very few if any. Know what the regulations are for your state.
A repossession service which employs agents who are experienced. The agents should be acquainted with the laws of the land. If the agent has enough knowledge it will help to avoid accusations of illegal repossession.
The company should have a rating with the Better Business Bureau also known as the BBB.
If the company has investigative services available to them it could be helpful. It would help in tracking down an asset or an owner who has moved to avoid the repossession.

While it is within the rights of a company to repossess items for non-payment this always the best option for the company. The use of a professional repossession service as a last resort can be a valuable asset to a company and can help to avoid many legal hassles, repossessions that are illegal, and other problems.

Repossession Service: What Are They Used For? is a post from: Foreclosure Guide

Keeping all the various record, documents, traces and other data managed and organized for a repossession company is often a challenge, especially if they are a larger, high volume company or agency. Using one of the many different types of repossession software available on the market makes record keeping simple and easy plus allows virtually instantaneous access to records, files and data.

Most repossession software is now simple and easy to install and customize, meaning that even those less than computer savvy individuals can easily use the software to manage and keep accurate records on their repossessions. The repossession software now on the market all comes with help information and frequently asked question sections, plus there is typically a free help line so you can call in and talk to a company representative or support service.

Some points to look for in repossession software are:

Does the software offer multiple functions such as an easy to use database of clients and repossessions as well as a financial and accounting component for easy billing and payment recording?

Does the repossession software offer any type of security guarantee or some type of encryption to protect both your client’s as well as your company information? What documentation is provided with regards to the system’s security?

Are employee records and employee work tracking options available that make payroll easy and simple to complete? Is the program flexible enough to match your current payroll and employee record system or do you have to change your system to meet the pre-loaded program on the software?

Is there a remote access option to the software and how is security provided for that option? This can be a big factor to keep up the minute information on repossession and skip tracing.

Can vehicle information, pictures of the vehicle and vehicle condition reports be uploaded into the system or inserted into the various files and databases?

Is VIN tracking available and how is it updated with the Department of Motor Vehicle records?

In addition it is important to look for a repossession software program that you are comfortable with. Most software programs have websites that offer a free download or a virtual tour of the software to allow you to experience the repossession software before making a purchase. Try looking at or using the trial version of a couple of different systems before choosing one. The more repossession software programs that you try out the more you will understand the wide variety of benefits to the software package and the options available.

The Benefits Of Using Repossession Software is a post from: Foreclosure Guide