Can you really stop a repossession? These Loopholes Could Help You!
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Did you know that you could prevent the repossession of your vehicle? You shouldn’t think that you have no options once the lender begins the repossession procedure. You can protect your car and avoid repossession by understanding the loopholes that lenders use. When can repossession occur?In many states, it takes only one missed payment for your loan to default. If you are 30 days late on your loan, it is unlikely that your car will be repossessed. Here are some car repossession loopholes to consider if your car is about to be repossessed. If your car is set to be repossessed, here are some car repossession loopholes to consider.
Negotiate with The Lender
Some lenders will allow you to make up the late payments. A notice of repossession and a 21 day default cure period must be given before a car can be repossessed. You can work with most lenders as long as you pay down the overdue balance. Most lenders will not repossess your car if you pay off the balance. You can reinstate your loan by paying all past due amounts, late fees and other charges in one lump sum. If you act quickly, your car may not be repossessed.
Refinance The Loan
If you have good credit, you may be able to refinance your loan with a new lender. Shop around for the best rates. Each state has its own laws on repossession. Some states prohibit car repossession agents from entering your property without permission. This includes garages and driveways. You may be able to sue your lender if the agent enters without permission.
Seek Assistance
States often offer assistance for needy families and local nonprofits can help you pay your bills. You can get help to pay for your car if you do some research. If you get ahead of missed payments, you may be able to avoid repossession.
Claim Bankruptcy
Chapter 13 bankruptcy is one of the ways to get your repossessed property back. When you file for bankruptcy the court will immediately put an automatic stay on collection activities. Have any questions regarding car repossession loopholes
? Let us know how we can help in the comments.
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