Repossession is something that happens when you aren’t able to make your payments. If you can’t pay the bank for whatever loan you took out, and if you are missing payments to them, since they own your property they can come and take it back. The bank would be able to do repossession, which means that they can come in and take whatever you used their money to buy. This can be very bad for you, so you need to make sure that you know how to avoid repossession.
There are several things that you can do to avoid repossession and to make sure that your items remain your items. One of the best things that you can do is to make sure that you are always organized, so you know how much you are going to have to pay, and when each of these payments is going to have to be made. This is something that is very easy for you to do, and something that you should be in the habit of doing for all of the bills that you have to pay. Being organized can mean that you’ll never miss a payment due to forgetting about it. In addition, by being organized you will feel more in control of your finances and feel better overall.
The other most important thing that you can do is to talk to your lender and let them know about your situation. Whether you have lost your job or have just been laid off for an extended amount of time, let them know everything. A lender who is left in the dark about your financial situation thinks the worst whenever you do not make payments. A successful lender will be able to work out a repayment plan that you can afford. This type of adjustment will affect your credit score, but you will not have to worry about loosing your most valuable possession, your home. As soon as you are aware of the lower payment which needs to be made, you should begging making it as soon as possible. If you go too long without paying, they may take legal actions to repossess your home.
Repossession Calendar
The calendar below will help you remember what happens when property is repossessed, and what you can do to protect your property. Your creditor may notify you that he or she intends to repossess your property before doing so but is not required by law to warn you ahead of time. Your legal rights will vary depending upon whether your creditor gave you advance written notice of the repossession.
| REPOSSESSION CALENDAR | |
| TIME | EVENT |
| Day of repossession | Creditor takes back your secure purchase. |
| Within 3 days after repossession | If you did not receive advance written notice of the repossession, creditor must give you a written statement of the amount you are currently in default and the expenses of repossession and storage. |
| 1 to 15 days after repossession | If you did not receive advance written notice of the repossession, you can get your item back by paying the amount in default (and correcting any other default) and paying the cost of repossession and storage. If you did receive advance written notice of the repossession, you may be able to get your item back by working out an agreement with the creditor which may require refinancing or paying off the full debt. |
| Before resale | The creditor must give you at least 10 days' written notice of the time and place of any public sale or the time after which a private sale may take place. You may still get your item back up to the date of resale by working out an agreement with the creditor which may require refinancing or paying off the full debt. |
| Day of Resale (16 days to 6 months after repossession) | Creditor sells the item that has been repossessed. |
| 1 to 30 days after resale | Creditor gives you a written statement of how much the item sold for and how the proceeds of the sale were spent. |
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