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Can a vehicle be recovered by a repossession agency working for the lender and the car be placed on the lot and resold without the borrower being notified in Texas?

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2006-02-15 17:28:28
2006-02-15 17:28:28

Not sure of TX law, but in AZ there is a 10 day right to cure period. In other words, a repo'd vehicle in AZ cannot be sold for 10 days after repo. In Ohio we deal with many "buy here, pay here" lots that send us orders to repossess vehicles. The way it works here is once we repo the car, the lender can't do anything with the vehicle for 20 days. If the debtor hasn't contacted the dealership (lender) after 20 days, the dealership will have the title transferred back to the dealer's name and depending on the vehicle's value they will usually re-sell it on the lot but sometimes will send it through an auction. Most people think that if their vehicle is repossessed that the only thing the lender can do with it is sell it at auction. This is not true. They own the vehicle now and can sell it however they want whether that is on their lot, auction, private sale, or they can take bids on it.

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Florida allow repossession by UCC regulations, a right to cure notice or replevin order is not required and the vehicle may be recovered by a licensed agent as long as it is done without a breach of peace. The county recorder must be notified of the repossession action and the plates remain with the borrower.

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The creditor can obtain a replevin order from the court if it becomes necessary. Wisconsin is the only state which requires a replevin order to be in place before a vehicle can be recovered. All other states allow repossession under the UCC laws, although some do require the borrower to be notified and given a specified time to bring the account current before the vehicle can be seized..

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The lender regardless of status (corporation, bank, "buy here, pay here" private seller, etc simply needs to hold a valid lien against the vehicle and have the vehicle recovered by a licensed repossession agency. A few states require the borrower to be notified before a repossession is possible, in most states a vehicle can be recovered as soon as the contract is defaulted upon. Wisconsin is the only state that requires a lender to obtain a replevin order from the court before seizing a vehicle.

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Yes. It is perfectly legal for a repossession agent to take possession of a vehicle when they are acting on behalf of the lender. The repossession agency does not have the option of allowing the borrower to retain the vehicle even though proof is presented that payments have been rendered. Such issues are strictly between the borrower and the lender. The lender and/or court being the only parties that can rescind the repossession action.

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Yes. New York follows UCC laws when it pertains to the repossession of a vehicle. The borrower does not need to be notified of the action and the vehicle can be taken if it is not in an enclosed garage or locked property and there is not a breach of peace.

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No, if the vehicle is subject to repossession due to a default in the lending agreement, it is irrelevant whether or not the parent agrees to the action.

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Gap insurance only pays if the vehicle is totaled in an accident or stolen and not recovered. It does not cover the deficiency balance after a repossession sale.

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The vehicle will be taken to a storage lot, or sent directly to auction. The borrower will be notified by mail of the lenders intent to sell the vehicle either by an Order of Repossession or a Notive of intent. The vehicle will either be sold at auction or redeemed by the borrower. If sold at auction, the purchase amount will be applied to the loan debt. If the purchase price exceeds the debt plus all repo fees, the remaining amount will be refunded to the borrower. If the purchase amount is less than the loan debt (the more common scenario), the borrower will be required to pay the remaining amount of the debt.

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AnswerIf the surviving spouse was not a joint borrower on the vehicle loan the repossession affect/appear on their credit report.

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Absolutely. Any creditor action including repossession cannot be taken after the filing of a BK and/or before the BK is completed and discharged. The vehicle will have to be returned to the borrower to await action by the lender such as requesting the BK stay be lifted or a reaffirmation agreement made between the lender and borrower.

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If the lender decides to sue the borrower and wins a judgment, the judgment can be executed as a wage garnishment

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The lender has the option of foregoing repossession and filing a suit against the borrower for the amount owed plus interest, applicable fees and legal costs.

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I believe if you haven't paid in three months they can repossess your vehicle in Utah. *The state does not require a Right To Cure notice be sent to the borrower. The lender may recover the vehicle whenever the contract is in default. UCC laws apply, and the vehicle can be recovered by any means that does not constitute a breach of peace. The plates remain with the borrower/debtor.

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In the state of New York, provided there is a legal order for repossession, once the vehicle is located, it may be secured and recovered. The repossession agency has 24 hours to notify the registered owner of the repossession, but they are only required to do so by mail, and may do so to the address of record on the registration. They do not have to notify anyone at the time of repossession other than local law enforcement of jurisdiction. They must inventory and secure any property contained in the vehicle, and may charge a storage fee for that property.

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Those who have had a vehicle must be notified, typically within 24 hours, but that may be done by the repossesion company, the actual agents, or the original lender. All are acceptable.

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Sure. The owner can't stop the repossession and is aware of the incident, which makes it easier for everyone. * Not if the person is in the vehicle or the repossession agent would be committing a breach of peace, such as appearing at a neighbor's or public place where the borrower was and requesting the keys or another vehicle be moved, etc.

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The vehicle belongs to the lien holder until the lending contract is paid in full or settled as agreed between the borrower and the lender. The DMV will not issue a clear title to a vehicle which has a lien attached. A vehicle is considered a secured debt therefore the SOL's is not a factor. The circumstances are such that it is highly likely a lawsuit will be filed as the lender would be able to recover a greater amount without the aggravation of a vehicle repossession and resale. When the lender can prove the borrower willfully avoided the repossession action additional damages can be awarded at the judge's discretion. In some states a borrower can be charged with a criminal misdemeanor for "hiding a vehicle" that is subject to repossession.

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Under California law, a creditor can repossess the vehicle if it is in default without notice, even if the car payment is one day late. However, if there is a co-borrower on the loan, the creditor is required to give notice before repossession.

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what are the legalities of voluntary vehicle repossession

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If the secondary borrower is not paying the loan, you must take the vehicle back from the secondary borrower before the bank takes back the vehicle and ruins your credit. You will learn from that not to cosign a loan.

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In most states, yes. Provided the repossession company made a good faith effort to secure the unit, especially if their efforts motivated the borrower to make good on the bad debt.

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Not in most states, in a very few the lender must notify the borrower with a letter of intent to repossess and give the borrower a specified time as established by state law to bring the account current. Wisconsin is the only state that requires a replevin order to recover a vehicle. All other states operate under the UCC and the repossession laws (breach of peace laws, recovery agency requirements such as bonding, etc.) related to the area in which the vehicle is being recovered. The recovery agent/agency is required to notify the law enforcement agency that has jurisdiction in the are where the vehicle is being seized.

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Sample letter of vehicle repossession for the state of texas

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From personal experience, you do not have to be notified, but you do have to legally be notified of intent to sell vehicle, it has to be sold for a reasonable amount and they cannot enter a garage to repo. It's best to google repo in Indiana in order to obtain accurate information.


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