When you take out a loan to purchase a vehicle, you agree to pay it back based on the terms and conditions of the agreement.
You rely on your car to commute to work, pick up groceries and get your children to and from school. So, if you no longer have access to your vehicle, it will lead to a variety of challenges within your day-to-day life.
We should only buy things we can afford, but that doesn't stop us from making some bad financial decisions. In many cases, people make all the right choices and circumstances still keep them from financial success. Although creditors often have the right to reclaim what they are owed, they must follow specific rules regarding repossession.
Many of us have come to rely on using our car to get our kids to school, to work, to the store or anywhere else we may need to go. While it may be inconvenient if it happens, it's understandable if our car gets repossessed because we fall behind in making payments on it. What can be extremely frustrating though is if it gets picked up by the repo man in error.
If you've taken out a loan secured by a piece of property, the owner of your debt can repossess this property in the event that you default on the loan. This repossession process, however, must follow specific rules.
We've all heard stories about the repo man, and if you've defaulted on your auto loan, you could be in danger of having this person pay a visit to your home. In fact, in the case of most car loans, if you fail to pay the monthly payments, the owner of your debt has the right to send someone to repossess your property. However, you will have certain rights when dealing with the repo man. For example, repossessors cannot "breach the peace" when trying to take your property back.
As soon as you discover you can't make your car payment or some other kind of secured loan payment, you should act swiftly. You need to do whatever you can to reduce the risk of having your property repossessed. One or two missed payments could be enough to put you on the list of a debt collector.
Having your home repossessed can be an extremely stressful situation to be in. You may find yourself in financial struggles as well as facing the prospect of being homeless. A creditor can only rightfully repossess your home under certain circumstances, and sometimes, mistakes are made.
If you have an asset on credit, for example, if you are paying off a loan on your car, or have a mortgage on your house, legally, it is not really yours. Therefore, you must keep to the terms of the loan repayments if you do not want your creditors to take action against you.
When you lose your job or start struggling with debts, things can get out of control very quickly. When you start defaulting on your mortgage repayments, you can soon become at risk of having your home repossessed.