What to Do When Your Car is Repossessed
Having your vehicle repossessed can be a complete nightmare. You depend on your vehicle for practically everything: getting to and from work, driving your kids to school, making trips to the grocery store, and more. Plus, it’s essential to have a vehicle in case of an emergency. When your car is repossessed, it can make the rest of your life incredibly difficult. Sure, having an old junk car on your hands that doesn’t want to start half the time can be a challenge — but having no car at all is even worse.
Here’s the thing: once your car has been repossessed, the clock is ticking. The longer you wait to attempt to do something about it, the harder it’s going to be to get your car back. Laws tend to differ from state to state, but most states require banks to hold onto your vehicle for a predetermined period of time before they can do anything else with it.
What’s the Time Limit?
The amount of time that a bank will be required to maintain possession of your vehicle before selling it is different in every state. However, it’s not unusual for this period to be as short as just a week or two. Within this window, you’ll need to contact your loan provider to talk to them about your options.
Generally speaking, you’ll receive something in the mail called a “notice of sale” after your car is repossessed. This is an official letter from your lender, informing you of the fact that your vehicle is going to be sold in an attempt to pay off the debt that you still owe on it. This letter will contain contact information for your lender, and you can use this information to get in touch with them before your vehicle is auctioned off.
Getting Your Car Back
There are a couple of options available to you if you want to get your car back from your loan provider:
- Attempt to pay off the entire balance of the loan, all at once.
- Reinstate the loan by paying off whatever balance is overdue, thus bringing the loan current again.
Whether you choose to pay off the entirety of the loan or simply have it reinstated, you’ll generally have to pay various penalties as well.
Remember: the sooner you contact your lender, the more likely they are to work with you. It’s essential that you get in touch with them as quickly as possible. Once you have an honest, open dialogue established with your lender, you can discuss the options available to you.
Going to Court
Under certain circumstances, it may be possible to fight the repossession of your vehicle in a court of law. The following scenarios can provide grounds for a court case:
- Damage to your car as a result of repossession
- Aggressive tactics during repossession
- Bankruptcy declared before the vehicle was repossessed
- Car sold at auction for a fraction of its fair market value
- Additional property repossessed (such as personal belongings in the car)
If you believe you have grounds for a court case, you’ll need to speak to an attorney to explore your options.
Dealing with a repossessed car can be tough. When it comes to selling a junk car, though, things don’t have to be hard. Junk A Car is here to make the process of selling your junk car as easy as possible, and we’re standing by to answer any questions you might have. Contact us today to learn more.