Voluntary Repossession Exposed

Feb 18th, 2014 | By | Category: Info

Getting your car repossessed is a big deal. It can make it impossible for you to go to a job where you earn the revenue that not only makes the payments on your car, but puts food off the table and clothes your family. It can be a stressful thing when your car is involuntarily repossessed.

Actually, it really makes no difference who issues repossession. Whether it is voluntary or not, it is going to get the same effects on you either way. It is important to be aware a little bit about repossession before you make any quick decisions about getting your car repossessed at your request.

It really doesn’t matter who repossesses your car. You are still going to meet the same consequences if you voluntarily have your car repossessed as you would if it was made without your consent. Getting your car repossessed yourself is normally not the best decision you could make when you attempt to get rid of the balance you owe on the loan you took out to be paid for your car.

and that’s just the beginning…

You have no say in what happens to your car once it is repossessed. Your lenders will usually sell the car, and try to obtain the money out of it that you owe. Often, it will sell for a period of less than the balance you owe, therefore still leaving you owing money to the lender for a car you don’t even have anymore. This balance that you’ll owe after the car is sold is referred to as deficiency balance. Just because the car is no more in your possession, you’re still obligated to pay the amount of money that they couldn’t get from the sale.

However, if the amount they sell the car from is greater than the amount you owe, they’re obligated to give it to you.

Where Can We Go From Here?

There are rights you have that say that any money received subsequent to the car is repossessed and sold, and the balance is paid off, goes to you. This happens, however, whether the car is repossessed voluntarily or involuntarily.

Voluntary repossession shouldn’t become one of your first options. You should seek help elsewhere before you resort to this. Many lenders will negotiate with you so that you will be able to pay off your loan in a manner that’s easier for you to live up to, if you just ask about it and ask them your situation.

Long-term restructuring of Irish mortgages will become more prevalent now a cohesive and credible framework for dealing with arrears has taken shape, Fitch Ratings says. We expect tools such as split mortgages or trade-down products for borrowers in negative equity to be used first, followed by Personal Insolvency Arrangements (PIAs). Repossession or voluntary surrender will be a last resort. In July the latest version of Ireland’s Code of Conduct on Mortgage Arrears (CCMA) and the Personal Insolvency Act came into effect, …


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