The year 2020 is going to go down as one of the worst for numerous Georgia families, particularly when it comes to their finances. Too many individuals have found themselves struggling economically and missing payments on things like their homes, utilities and various loans. Car loans often fall to the wayside, as many people want to believe their lenders will show compassion and understanding, given the state of things. Unfortunately, missing one payment is all that is necessary for your lender to initiate repossession.
Car repossession happens more often than you might think. Most lenders are not willing to repossess a vehicle after one missed payment, though. If you know you cannot meet your debt obligation, it is wise to get a hold of your lender and try to work something out. You can’t know what your lender is willing to do to help you out if you don’t ask. If your lender is unwilling to work with you, here are a few things you may want to know about repossession.
Repossession can happen with no warning
Unlike a mortgage lender who has to go through various steps to foreclose on a home, vehicle lenders only need you to miss one or more payments before they can order a repossession. They do not need to inform you that it is coming. They do not need to set up an appointment to claim the car. The individual contracted to come take the vehicle can show up whenever and has the legal right to come onto your property to claim the car.
Your vehicle may be for sale after it is in lender possession
Usually, to get some of the money owed them, lenders will sell repossessed cars — often at auction. They may hold you liable for the difference between the remaining loan amount and the vehicle sale price, along with any fees mentioned in your purchase agreement.
Yes, vehicle repossession can affect your credit rating
Anytime you miss or make late payments, your lender reports that information to the three credit agencies. Your lender also has the right to:
- Report the repossession.
- Report the lack of deficiency payments.
- Send your case to collections.
If reported or if your account goes to collections, credit agencies can keep this information on your credit report for up to seven years.
Take action before the situation gets worse
The sooner you take action to prevent vehicle repossession, the better. Not sure what you need to do or what your options are? Don’t worry, this is not a problem you have to tackle alone. With assistance, it is possible to tackle vehicle repossession head on, as well as find solutions for any other financial problems you might have.