Every now and then an individual experiences some unfortunate reversals of financial fortunes, causing him to fall behind on his bills. When he misses too many auto loan payments, his lien holder may send out a “repo” man- that is a representative of an auto repossession company- to get the car back. The following will take a look at how to avoid car repossession so no one has to suffer the embarrassment of this action.

Phoenix, AZ -- (SBWire) -- 01/11/2013 --Obviously, the first thing to do to stop car repossession would be not to fall behind on the loan payments in the first place. However, the case being that there are now three late payments, there are other options available to help one keep one’s vehicle. If one does not have all of the arrearage, one can offer to pay the lender a portion of what is owed. If the lien holder allows the partial payment, it is, in effect, agreeing that they are sufficient enough to prevent repossession. Try to communicate with the lender and request a refinance of the auto loan or to negotiate a new repayment plan. Suggest signing a contract with a higher interest rate or longer repayment period to cover the back due amount.

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It’s possible the lien holder will be willing to work with a concerned, troubled consumer toward this end. While talking over a solution with one’s lender remember to be respectful and polite, lest the lender change its decision. Explain why the payments were late and vow to keep up with whatever the amount of a new payment is – then stick to that vow.

If a situation occurs where someone defaults on his auto loan, the loan servicer can hire an accredited repossession agency which will send a “repo” agent out to the person’s address to take possession of the vehicle on behalf of the lender. These agents will look in unexpected places to locate a vehicle they are being paid to recover. They will come at night or in the middle of the automobile owner’s work shift. They will find the owner’s mother’s address and go to her house to get the car.

The point is that there is nothing these people won’t do to get possession of the car, so make every effort not to fall behind on payments. To avoid car repossession, take steps when one payment is missed and apply for a bad credit auto loan. Obtaining this financing can be the difference between losing one’s car to repossession or retaining possession of it. If approved, keep up on the payments!

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