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Published Date: April 15, 2023
Thе single most effective way tо stop repossession is to keep in constant contact with your finance company. If you respond to any communication sent by your finance company, they’ll probably back off. Why? Because they know you’re willing to work with them to stop repossession. Let’s learn how to stop a car title loan repossession …
Once your account is sent to collections? Your name typically comes up on their list of people that are in the areas. These lists are divided by people who are significantly behind on their payments. Collection agents will, at times, go down the list. They then make calls and mail continuous letters until contact has been made. They’ll usually note your account and remove your name from the list if you answer. At least until the action that was supposed to take place occurs.
If your payments still aren’t current? Your name will come up on that list again. The finance companies truly keep notes on everything! So, if you contact them before contacting you? Your name might never appear on the dreaded list at all. Keeping in contact with your finance company will likely buy you at least several months. In this period, you can arrange to make payments and get the loan under control. You might even be able to stop repossession!
Many people often wonder, “How to Stop a Car Title Loan Repossession.” If you tell the finance companies the reason you’re unable to make the payments, they’ll allow you extra time. Take advantage of their generosity. If you know you won’t be able to pay for up to 3 months. Let the finance company know! Have them tell you what your options are and what they can be. Tell them you’re short on cash for about 90 days and if there’s anything that can be done. Chances are, they’ll work with you if you stick to your word. If something comes up and you can’t pay the 90-day mark, call them in advance to let them know. Going past 90 days without paying, you probably shouldn’t bother to contact them. They probably will not cooperate with you …
Only take out a car title loan if you know for a fact that you can repay the loan balance in full. Especially by the first due date. After all, you likely depend on your car and don’t want to put it at risk! You also may not want to incur additional interest charges if the loan rolls over. However, many people take out a car title loan without having a repayment plan.
All of these options will help you avoid a title loan repossession. Keep in mind that a vehicle repossession will strip you of your car without notice. You may be heading out the door to work and discover your car is no longer there as needed. Any equity that was on the vehicle is officially gone. Also, repossession reflects negatively on your credit rating. This can make it truly difficult for you to obtain financing in the future. This includes if you need to apply for a new car loan. It’s best to act quickly to deal with the car title loan before title loan repossession occurs!
Wondering how long before title loan repossession occurs? Title loan regulations permit the title lender to repossess the car as soon as a default occurs. Keep in mind, you must repay the entire loan balance to avoid foreclosure. You could potentially repay most of the title loan. But, the lender could repossess the vehicle if you default. That’s on any portion of the amount due! If you’re facing a pending due date? It’s best to plan the rollover with your auto lender as soon as possible. Or, develop a plan for repayment!
Only rollover the car title loan if you know you can develop a plan for repayment. Or, you can sell the car before the next rollover period. Remember that each rollover costs additional money. And, it increases your risk of repossession!
If you have never had a vehicle repossessed, likely, you don’t know what to expect. The auto title loan lender will not schedule repossession dates. They do, however, contract with a third party to collect the vehicle. This may be from your work or home, and it may be at any hour on any given day. The third-party will not knock on your door or notify you of the auto repossession. Instead, they’ll just go ahead and tow your vehicle away. Upon discovering auto repossession, you’ll have the option to attempt repayment. Or the car goes on auction …
Auto loan delinquencies have been steadily decreasing since the beginning of 2012. There are several theories as to the cause of this trend. Having a car is crucial to the financial well-being of most American consumers. The phrase, “No Car, No Job” is a common catchphrase. Even so, there are those facing repossession. We now know a bit about how to stop a car title loan repossession. Most consumers aren’t aware that a vehicle repossession is just as damaging for the auto lender as it is the borrower.
Some borrowers are simply facing auto repossession because of temporary shifts in income. The auto lender should look at the immediate situation. If the potential borrower now can make on-time payments, lenders should have the borrower make a payment. Trying to strong-arm consumers is a worthless tactic. Some car title loan lenders think that consumers have no alternatives …
The need for the repossession will never fade away. There are always borrowers who simply cannot afford the car anymore. Or, they just don’t care if car payments are made or not. The point is, auto repossession should be the last option exercised, period. It’s not uncommon for people to mismanage money, or to have life experiences that cause their budget to crumble. Let your finance company know! Let’s continue to learn more about how to stop a car title loan repossession.
Many people seek bankruptcy protection for their debts when learning how to stop a car title loan repossession. But only a few people know the difference between their debts! Not all debts are the same. And, their difference is truly important within the bankruptcy process.
Secured debts are those that have an asset, or collateral, against the loan. In the event of default, secured debt creditors are granted repossession rights over the asset. These repossession rights make managing secured debts in bankruptcy a bit trickier than unsecured debts. In general, secured debts are better managed through Chapter 13 cases. Why? So that the debtor can develop a repayment plan to satisfy the debt owed. Repayment of the debt is generally required in secured debts. This is to prevent any liquidation or repossession of assets.
These are the most common types of debt brought into bankruptcy. They’re easily managed by either a Chapter 13 or Chapter 7 filing. The reason? Unsecured debts do not grant automatic repossession or liquidation rights to creditors. This gives the debtor more flexibility in finding a resolution. While many of these are easily managed in bankruptcy, some are not eligible for discharge in bankruptcy.
Some debts aren’t eligible for bankruptcy protection under any circumstance. These payments are considered one’s civic responsibility. They are not eligible for payment assistance. In general, tax and student loan debts are also not eligible for bankruptcy protection. But, there are some exceptions! Income tax debts may qualify if they at least three years old. Or if they have a current tax return on file and were not considered part of fraud cases …
If you have a car title loan and you’re having difficulties paying, the best thing for you is to settle with the lien holder! You can contact Car Title Loans California to see if we can refinance your title loan. Always stay in contact with your car title loan company!
Finally, there arе steps you can take to prevent a title loan rеpossеssіon if onе is a possibility. Contacting your lender and outlіnіng your sіtuatіon is the first step. Lendеrs frеquеntly want to work with borrowers who arе havіng money problems and may be opеn to providing different payment arrangements or loan extеnsіons.
As an alternative to a tіtle loan, you mіght thіnk about rеfinancing thе dеbt wіth a different lender or applying for a pеrsonal loan. Your legal options may include dеclaring bankruptcy or contestіng the repossеssіon іn court if nеgotіations with thе lendеr provе unsuccеssful.
The fact that these choices could have serious rеpercussіons should be kеpt іn mind, though, and they should only be taken into account after consulting with a lawyеr.
The best way to stop a title loan rеpossession is to avoid this situation altogethеr by carefully reading the loan’s terms and conditions and making sure you can afford the paymеnts.
If you do find yourself in this situation, acting quickly and getting help from financial еxperts can help you get back on track and keep your car.
This article was brought to you by Car Title Loans California.
If you need to get a title loan, we have the largest referral network, so we will be able to get you the best title loan for you. All of our referral partners are in compliance with the CFPB.