What To Do After Your Car Is Repossessed
Posted on: 7 July 2021
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Getting your car repossessed can be devastating, especially if your livelihood depends on a car. It can be difficult to recover from a car repossession, but it is not impossible. The following are some things you should do after your car is repossessed:
Find Out Why the Car Was Repossessed
If you have not been paying your car payments, you likely know why your car was repossessed. However, if you have been making payments and your car was still repossessed, you need to figure out why. For example, in some states, a car can be repossessed if your loan states you must have insurance to satisfy the terms of your loan. If you do not have insurance on your car or if you missed payments that resulted in the cancellation of your policy, your car can be repossessed. Be sure to reach out to your lender to ask questions about why your car may have been repossessed. You may be able to take care of the issue and have your car returned.
Ask How to Get Your Car Back
If a bank repossesses your car, you need to find out how to get it back. Some lenders will require you to pay the full balance of your loan to get a repossessed car back into your possession. You may also be able to amend your loan or work out a way to get your loan back into good standing. Understand that your payments can be higher or your loan terms may be shortened. Once you work out the details with your lender, you may be able to get your car out of repossession.
Keep in mind that if you do get your car back, you must maintain your end of the bargain. You have to figure out how you will make the necessary payments or carry the necessary insurance coverage. If you cannot do this, you may just need to let the car go to auction. One thing to keep in mind, however, is if your car does go to auction and sells for a price less than what you owe, you are still responsible for the difference. If you do not pay the difference, your credit score can suffer.
Find Out Your Rights
Even though your car has been repossessed, you do still have some rights. If you have any personal possessions inside the car, the lender cannot lay claim to those items. For instance, if you left your phone or computer inside the car at the time of repossession, those items cannot be used as a form of payment towards the car. Some states are required to provide you with a list of items left inside the car at the time of repossession, along with instructions as to how to get those items back. Otherwise, you will have to ask the repossession company how you can get your property back.
Reach out to a car repossession company for more information.