When a person has been affected by a financial reversal of fortune resulting in his vehicle being taken back by his lender, it might behoove him to learn how to stop a car repossession.
Phoenix, AZ -- (SBWIRE) -- 08/26/2013 -- When a person has been affected by a financial reversal of fortune resulting in his vehicle being taken back by his lender, it might behoove him to learn how to stop a car repossession. This is why Credit-yogi.com is here, offering to share its knowledge of this process, including:
- Making up Past-Due Payments
- Reinstating the Loan
- Redeeming the Automobile
- Talking with the Creditor
Depending on the terms and conditions of one’s loan agreement, he can be in default on the loan after only one late payment, or after three or more. Being in default means that a lender can contact a repossession agency and begin the process of taking back a person’s vehicle. Part of knowing how to avoid car repossession is understanding the options, one of which is making up all of the overdue payments. Be certain to include any costs or fees in the payments so one does not default again by not paying the correct amount.
Reinstate the Loan
It is possible for a person to reinstate his auto loan even if he’s in default of it. A second piece of how to stop a car repossession is to reinstate the loan by making up all of the late payments, including all fees and charges, in one lump sum. Check with the state’s regulations about reinstating vehicle loans, as not all of them okay it. Keep in mind that this can only be done one time; if the person defaults again, he may lose this option, meaning he’ll likely lose his car, too.
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Redeem the Vehicle
If one wishes to understand how to avoid car repossession, redeeming the vehicle can be an answer. Once a vehicle has been taken back by the lender, one often has the right to redeem it by paying the entire amount due on it. Along with this sum, one must include the past-due principal and interest, repo fees, storage fees, and sometimes, the cost of an attorney. There is not much time to redeem; if the car is sold, that’s it.
Chat with the Lender
When someone needs to know how to stop a car repossession, he should go speak to his lender. There are some choices for negotiating with the bank, one of which is to sell the vehicle oneself to pay off the loan. If one is in default on the loan, he can surrender the car. The lender will probably reduce or waive the outstanding amount. If the lender will agree to a refinance of the loan, this, too, can halt the repossession.
Credit-yogi.com is a consumer-oriented website whose goal is to provide the fastest, most correct answers to the financial inquires folks submit. For a free initial consultation, dial 866-964-9644.