answersLogoWhite

0


Best Answer
Copy

That is a repossession. Anytime the lender get's the car back instead of the money agreed to on the contract, it's a repossession. It will show as a voluntary repossession. And hurts the credit. Doing it does not relieve you of any deficiency between the amount the car gets sold by the bank for and the amount you owe. However, you would save many of the costs that the bank would have to expend, (fee's, towing, etc.,) that would become part of the amount you owe (hence make that possible deficiency bigger) in a "normal" repossesion. It is definately better, ABSOLUTELY ALWAYS, to co-operate, even work with the lender if you cannot make payments and would end up with an involuntary repossession. And when you do this "possession in lieu of forced repossession", you may be able to get them to agree to any number of things: Perhaps even waiving any deficiency; very possibly along with allowing you some time to sell it yourself - which is cheaper to all than having to have a broker and such involved, and can get substantially more for the car than it being sold in a bankers wholesale auction.

User Avatar

Wiki User

โˆ™ 2007-02-03 00:01:06
This answer is:
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Add your answer:

Earn +5 pts
Q: Can a person voluntarily return a car to the bank to avoid repossession?
Write your answer...
Submit

Related Questions

You returned a car you purchased because you could not pay for it?

That is called voluntary repossession. You will be required to pay the difference in what the lender sells the vehicle for and the balance on the note after that amount is applied to the loan. You did avoid repossession fees by voluntarily turning the car in. Your credit will also show this repossession for 7 years.


Can you lock your car in a fence to avoid repossession?

no


What are the repercussions of an automobile repossession?

First off you will be required to pay the repossession fees unless you voluntarily turned the car in. Secondly you will be required to pay the deficiency. The deficiency is the difference in the amount the lender sells the car for and the amount you owe. Let's say you owe $10,000 and they sell the car for $8,000. That leaves you owing the lender $2,000. Thirdly this repossession will be placed on your credit report and will stay there for 7 years. Repossession should be the last resort after you have talked to the lender and done all you can to avoid this. Sell the car to another individual even if you have to sell it for less than it is worth, then pay the lender the deficiency out of your pocket to avoid repossession. Have someone take over the payments. Whatever it takes to avoid this.


How can you avoid a repossession of a car?

Of course the best way to avoid repossession is to stay current with your payments. If that is not possible, don't just ignore it. Call you bank or loan company and explain the problem. Quite often you can reach an agreement that will forestall repossession.


What are the consequences of voluntarily repossessing a car after having it for 6 months?

Credit will be ruined for 7 years. You will also pay the difference in what the lender sells the car for and the balance on the note, and possibly the repossession fees. Avoid this if at all possible. Talk to the lender and see if you can work this out.


How would an incarsarated family member return a new car to the dealership?

Well first off, it's not like he could get a refund. If he is simply going to let it get repossessed, he can have someone else drop it off & he can send the lienholder a letter stating he is voluntarily letting them repossess the vehicle, along with location of where it was left. Voluntary repossessions avoid additional charges, towing, repossession fees,etc.


What will a car repossession do to your credit rating?

A repossession on your credit is NOT GOOD. Avoid it if there's anyway possible. You say the car is SOLELY in your name?? GO GET IT and sell it.


What if you voluntarily give up your car for repossession?

This is only a partial question, but I'll try to answer what I think the full question might have been. Either way you are generally liable for the difference between the fair market value of the car and the amount remaining on the loan, so there's no real difference there. However, voluntarily giving up the car before it's forcibly repossessed can avoid some headaches. For one thing, you'll avoid the repossession fees; for another, you have some degree of control over exactly when it happens, allowing you to do things like remove aftermarket upgrades (stereo stystem, alloy wheels, etc) you may have installed and replace them with the original equipment.


Can a gunner run down the field out of bounds then reenter to tackle the ball carrier?

Only if he is forced out. If the gunner voluntarily runs out of bounds to avoid blockers on the return team, and then runs back in bounds to make the tackle, it is a penalty.


How can you avoid the repossession of your car?

You can avoid repossession of your car by keeping tab of your car payments, discuss your situation with the creditor instead of ignoring them. Other things you might want to consider would be to sell the car to at least pay off some of what you owe, or file for bankruptcy.


If I missed five payments on a motorcycle can I pay them late and avoid repossession?

Up until the time that your motorcycle is actually repossessed, the dealer will be happy to receive your payments, even if they are late, and will allow you to keep the motorcycle. But if you wait too long the repossession will happen.


How can you avoid repossession?

Most automobile financing agreements allow a creditor to repossess your car any time you're in default. No notice is required. If your car is repossessed, you may have to pay the full balance due on the loan, as well as towing and storage costs, to get it back. If you can't do this, the creditor may sell the car.If you see default approaching, you may be better off selling the car yourself and paying off the debt: You would avoid the added costs of repossession and a negative entry on your credit report.3 ways to AVOID repossession1. pay the notes2. find someone else to pay the notes3. slip the car aboard the space shuttle bound for MARSAs a repossession specalist, I can say that paying the bill is the best way to avoid repossession. If that is not possible, talk to the bank or lender. Believe it or not, they do not want your car, they want the money and will be more than willing to deal with you. They generally loose money on a repossession. 90% of the time that I receive a repossession request, the debtor is more than 65 days behind (average is 3 months)and is avoiding calls from the lender.In regards to hiding the vehicle or other technique, if the agent is worth his or her salt this will only delay not prevent repossession and may end up costing the debtor more. Once a repo is made and the vehicle is auctioned, any remaining balance is charged to the debtor. This includes the cost of the repossession. The more it cost me to do the job, the more it costs the bank and that cost is passed on to the debtor.


What should you do if your uncle is hiding a vehicle in your garage to avoid repossession?

Contact the lender and make arrangements for them to secure it. If it is discovered that you are assisting in hindering repossession, or when the vehicle is found to be in your possession, you could be criminally charged. This could vary from accessory to a felonious act to as serous as grand theft auto.


Does having a remortgage help to avoid repossession?

Yes. If you don't remortgage, you can almost be assured that your property will be auctioned off to the highest bidder. The goal is to delay the repossession as long as possible so you will be allowed to prepare for reminders about payments, solicitors, and--when the time comes--upcoming court dates.


If i am 167 days delinquent on your car payment's. can you work something out with the lender to avoid repossession?

No one can answer this question except the lender. You need to contact them and ask.


How bad will a rep hurt your credit?

A repossession will remain on your credit for seven years, which will decrease your credit score. You should work out a payment arrangement with the creditor to avoid it.


Can you give up your rights to avoid fighting the ex wife over support?

No, voluntarily relinquishing your parental rights does not excuse you from paying child support.


How do you avoid a crazy person?

Kill them.


Should you buy reposessed car?

I would avoid purchasing a reposessed car because in some cases, cars that are reposessed are trashed. I had a friend who looked at a car that was a repossession and there were things missing from the car (radio with CD player). I would avoid purchasing a reposessed car because in some cases, cars that are reposessed are trashed. I had a friend who looked at a car that was a repossession and there were things missing from the car (radio with CD player).


What can I do to avoid repossession of my property?

Whether the property at risk is a car or your house, you can take steps to prevent repossession even if you are late with payments. Nearly all lenders and creditors will be happy to work with you as long as you don't wait till you are hopelessly behind. Contact them first; a bakruptcy should be your last option.


Can an interested person in real property be a witness to the grantor's signing on a deed?

Absolutely not. The witness should be a disinterested person to avoid vulnerability to challenges later.Absolutely not. The witness should be a disinterested person to avoid vulnerability to challenges later.Absolutely not. The witness should be a disinterested person to avoid vulnerability to challenges later.Absolutely not. The witness should be a disinterested person to avoid vulnerability to challenges later.


What do you call a person who hides on a ship to avoid paying a fare?

A person who hides on a ship to avoid paying a fare is called a stow away.


Why did Jacobins like Maximilien de Robespierre argue that the French royal family needed to be executed A. To appease military leaders such as Napol and eacuteon B. To avoid a return to absolute mona?

to avoid a return to monarchy


How do use the word avoid in a sentence?

"I choose to avoid that person becasue I do not like him" "I generally avoid that food" "On the whole, I choose to avoid my mother in law" etc...


Why do people avoid people they are attracted to?

Sometimes people avoid or rather try to avoid people they are attracted to because they are afraid of being rejected from that person or they are shy and don't know how to act around that person.