A person falls behind on his car loan payments and the bank takes steps to remove the vehicle from his possession. Where is he to learn how to stop a car repossession?
Phoenix, AZ -- (SBWIRE) -- 06/21/2013 -- A person falls behind on his car loan payments and the bank takes steps to remove the vehicle from his possession. Where is he to learn how to stop a car repossession? Credit-yogi.com may be able to provide some answers to that question by offering some thoughts about this subject, such as:
- Make Up Late Payments
- Redeem the Vehicle
- Negotiate with Creditor
- Refinance Auto Loan
Know More About How to Stop Your Car from Beinig Repossessed!
Pay the Past-Due Amount
The definition of “default” varies. Some lenders say it’s being late by one day; others say it’s 30 days. When pondering how to stop car repossession of your car, find out what the original loan agreement states. If fortune shines upon someone in default, he may be able to bring the loan up to date by making up the past-due amount, including any fees. This may get him out of hot water and allow him to keep his vehicle.
Right of Redemption
Sometimes, if one is able to pay the balance of the auto loan, he may be able to claim the right of redemption. This isn’t always feasible, for if each person dealing with how to stop a car repossession could afford to do this, there would be no repossessions. However, if one can claim the right of redemption, he can get his car back. Remember that other costs and fees go along with the “entire” amount due, including accumulated interest and repo fees and costs for storage of the vehicle.
Talk to the Lender
Rather than asking for a loan modification when meeting one’s lender, another way to address how to stop car repossession (of your car) is to offer to get the vehicle back or get the money owed for the car. Selling the auto is one possibility. When a lender sells a car at auction after repossession, he doesn’t get the full amount of what it’s worth. If the “owner” can sell it for closer to its worth, the lender may approve that. Another idea is to surrender the car to the creditor. By doing so, it’s likely the lender will forgive the balance on the loan.
Refinance the Loan
Check with a lender about refinancing the car loan to respond to how to stop a car repossession. A refinance occurs when the original loan is paid off and a new one with better terms is devised. Taking this step can immediately halt the repo process, and if one can’t do it with his own lender, he should look around. Another lender will be happy to do it.
Credit-yogi.com is a reputable website whose goal is to connect people who have financial questions with the experts in the field who can give them answers. For a free consultation, dial 866-964-9644.