Know these Stop Car Repossession Secrets
IF YOU WANT TO KEEP YOUR CAR, YOU NEED TO GET “REAL” NOW! This is serious stuff. Most car owners know when their car is at risk of repossession. They are in default or soon will be in default on their car loan or have breached their loan agreement in some way. Almost everyone we speak with says: “I know I am behind (late), but I can’t afford to have my car repossessed. I won’t be able to get to work, the doctor, school… etc.” If your car gets repossessed, you may experience a lot of problems, including the hassle and cost of getting the car back. Use these Stop Car Repossession strategies to buy yourself the time you need to get in touch with Start Fresh Utah and discuss your options. BTW, if your car was hooked (slang for repossessed) while you were reading this, do not panic, Start Fresh Utah can help you get your car back; but, time is of the essence, you need to act quickly.
- Communicate With Your Lender: The Good, The Bad And The Ugly Truth.
- How Do I Know If My Car Is Going To Be Repo’d?
- Can I Hide My Car To Stop Car Repossession?
- What If I Just Give My Car Back To The Lender?
- Do I Get A Notice Of Repossession?
- Does Bankruptcy Stop Car Repossession?
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Communicate With Your Lender: The Good, The Bad And The Ugly Truth
The best way to stop car repossession in Utah is to communicate with your lender and work out a plan to get out of default. There are many kinds of car lenders in Utah, from major institutions, like national banks and credit unions, to private individuals. Each operates with a different level of integrity. Generally, if you have signed a bona fide loan agreement, the terms and conditions define what a “default” is and the notices that the lender will provide you before they issue an order to repossess your car. That does not mean the lender will follow the loan terms and conditions. It is wise to assume the worst and work for the best. The Ugly Truth is that the lender does not care about you or what difficulty you might face if they declare the car loan in default and repossess your car. The car is their collateral for giving you the loan and they intend to protect it. If you have defaulted on your loan agreement, the lender has the right to take their collateral, sell it and use the proceeds to repay their loan. Generally, a legit lender will notify you that you are in default of the loan agreement and they intend to repossess your car if the default is not taken care of. Be on guard, even if the lender’s representative is telling you that they are going to work with you, if the loan is in default, your car can be repossessed. Remember, your lender is not your friend, they are a debt collector, they want their money or they will take your car. It is a good idea to record every call you take from or make to your car lender, just in case. The Good news is that your car lender has an economic incentive to keep you making your payments on your loan. It is expensive and distracting for your car lender to repossess your car. Try to negotiate with your lender and do not avoid their calls or mail. They are much more likely to try to work out a solution with you as long as you are staying in touch with them and doing your part. Moreover, if you are communicating with them and trying to work out a default solution, then they are more comfortable that they can find your car if they want to get it. Your car lender is likely to have programs to help you get back on track. Ask your lender to defer one or two payments to the end of the loan. Many lender’s have online request forms that will allow you to move a payment to the back of the loan every six months, for a fee, of course. If you are suffering a financial hardship, your car lender may have a program to modify your loan so your payments can be made more affordable, which can help stop car repossession. If you do not ask for help, your car lender is unlikely to offer. Generally, your lender will honor verbal agreements to assist in helping you cure your default, but you need to be prudent, as long as you are in default, your lender can repossess your car.
How Do I Know If My Car Is Going To Be Repo’d?
The best way to know if your car is subject to repossession is to call your car lender and request a loan status. The agent you speak with may tell you that your loan is in default and that you are so many days behind. Unless you ask specifically if your lender has issued an order for repossession of your car, your lender may or may not make that information part of their status report. Even though you may be in default on your loan, the lender may not issue an order for repossession until you fall 60 to 90 days late on payments. Most lenders want to work with you to stop car repossession. If you know you are late on your loan, it is a good idea to be prepared to make arrangements to get back on track. Know what you can reasonably pay on a regular basis because your car lender will want you to commit to a plan in order to stop car repossession. If your lender has issued an order to repossess your car, they can stop car repossession by cancelling the order. Do your best to come to an agreement to bring your loan current and eliminate the default. Ask your lender to send you an email confirming what your agreement is and that they have cancelled the repossession order. Then do your best to stop car repossession by adhering to the agreement. If you fail to stick to the repayment plan, then your car lender will move to repossess your car. Make sure that you ask your car lender to If you have come to an understanding with them make sure that you make the request and that they send you an email confirming your repayment arranc=gement and ask them When you speak with your car lender, make an effort to find a reasonable repayment plan to get back on track and request that they stop the car repossession. Negotiate a plan with your lender that you believe you can achieve. If you let the lender commit you to a plan that you do not think you can adhere to, then you will likely not be able to stop car repossession. Feel free to reach out to Start Fresh Utah to discuss your particular situation. We can explore the options you have to stop car repossession.
Can I Hide My Car to Stop Car Repossession?
Hiding your car from the car lender may buy you the time you need to get legal help to stop car repossession. It may be your only option if you are unable to reach an agreement with your car lender to bring your car loan current or you have defaulted on your repayment agreement. If you have to hide the car to stop car repossession, you need to know that eventually the repo company will find the car. If you keep the car in a locked garage or in a locked area, then the repo man generally will not attempt repossession. However, if your car is in a garage and the garage is accessible, then the car can be repossessed. It is legal for the repossession service to enter the property to repossess the car if they do not destroy property, break and enter or disturb the peace. Even if you are really good at hiding the car to stop car repossession, the effort will eventually be thwarted by your car lender getting a court to order you to surrender your car, known as an order of replevin. Typically, with the order in hand the repossession service will visit you with an officer of the peace and will require you to surrender your car. Refusal to surrender the car could result in arrest. If you are at the stage of hiding your car, you are encouraged to contact Start Fresh Utah to discuss your options to permanently stop car repossession.
What If I Just Give My Car Back To The Lender?
You can tell your lender that you want to just give them the car back. This is known as a voluntary repossession. Once the lender takes the car back, you still need to be removed from title which will trigger a repossession to be reported on your credit record. Moreover, even though you have stopped car repossession by relinquishing the car to your lender, you are still on the hook to pay any shortfall on the loan payoff that the lender has after applying the proceeds from the auction of the car to its loan. So, in sum, you thought you were playing nice and gave the car back to the lender. In return, you have a repossession reported on your credit and face a collection action for any loan payoff deficiency. An unpaid loan deficiency can result in aggressive debt collectors harassing you, a lawsuit filed against you that will result in a money judgment against you. The money judgement will be reported against your credit and have a negative impact. The debt collector will likely seek a garnishment of your wages to get paid.
Do I Get A Notice Of Repossession?
Your car lender will likely tell you that you are in default on your loan agreement, but they are not required to give you advanced notice of repossession. The “self-help” repossession exempts the lender from seeking a court order to repossess your car. Most third party repossession services will not provide any notice either. If your car is missing and you feel that it may have been repossessed then you should call your lender and ask what you can do to get your car back. If you have personal belongings in your car, the repossession service will allow you access to the car to retrieve your property or they will have removed it from the car and have it stored. Of course, there will likely be a fee for access and storage. In order to stop car repossession or If your car has already been repossessed, contact Start Fresh Utah to discuss your options.
Does Bankruptcy Stop Car Repossession?
One of the most effective ways to stop car repossession is to use a Chapter 7 or Chapter 13 bankruptcy. The Federal bankruptcy statutes protect the debtor from any and all collection activity. Consequently, once you file for bankruptcy, the lender must stop car repossession efforts. In fact, even if your car has been repossessed, but has not yet been sold at auction, then your lender must stop car repossession and release the car to you. Neither your lender nor their repossession service can charge you any fees for towing, storage, personal property security, etc.
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