After the repossession you will not have the collateral. The collateral will be sold. When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor
It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car
In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car
Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency
A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.
What are the steps in a repossesion of collateral (boat) in the state of Alabama?
The California Business and Professions Code is very clear on this point. The code states the following: With regard to collateral subject to registration under the Vehicle Code, a repossession occurs when the repossessor gains entry to the collateral or when the collateral becomes connected to a tow truck. You can find out more repossession related laws by checking out the website at mparepos.com. They have a FAQ page that answers all related repossession law questions for the State of California.
Repossession is generally used to refer to a financial institution taking back an object that was either used as collateral or rented or leased in a transaction.
Failure to repay a loan which has been secured by means of collateral may result in the seizure of that collateral. This would constitute repossession only if that collateral was something that you had purchased with the borrowed money. It could be something entirely different, though. Any valuable possession can be used as collateral, if the bank agrees. If it is, let us say, a piece of jewelry that you had inherited from your grandmother, it would be something that the bank had never previously possessed or financed, hence, the seizure would not technically be a repossession. You can only repossess what you previously possessed.
Your property can be subject to repossession if you default on a loan. This can be the case if you put up part of your collateral as a guarantee for your loan.
As long as a vehicle is collateral for a loan, it can be repoed.
The main causes of property repossession is for nonpayment of the mortgage or any loans where the property was put up as collateral. If nonpayment occurs the lend has the right to repossess.
They have no liability for a vehicle repossessed lawfully from their property.
If guess you mean "refinance" when you say "reprocess", the answer is repossession. Loans in DEFAULT are subject to repossession of the collateral and payment of the balance owed by voluntary or legal means.
Collateral Recovery, (original & revised) and The Repossession Process.He lives in Tulsa,OK on a mountain with his wife Brenda
Look in the phone book under "collateral recovery","repossessions","towing & recovery", ect.
Loan stock is considered a liability. Whereas the nature of the expenditure is collateral base. While it is initially used as an asset to company it is a loan, therefore a liability.
You HAD the right to keep an eye on collateral that you were standing good for and to make sure it was being paid for in a timely manner. Now you have the right to PAY for that collateral after it sells at auction.
A repossession is a significant derogatory mark against your credit. The account appear with a similar status as any collection or charge off account. In repossession, the collateral is often re-sold with the amount received being applied against any remaining amount owing on your loan. If the collateral is sold for less than what you owed, the amount left over, called a "deficiency balance" is still your debt. The creditor can actively collect on this, report it on your credit report and sue you to recover the amount.
No. Repo (or repossession) occurs only when payments are not made on a car loan, or if a collateral conversion is done by a lender with whom you have another unpaid loan, or if the courts permit a collateral conversion in the event of an unpaid judgment.
All states vary and Im not sure about Colorado but the nom. is 7-10 years.
that's like saying, "I was speeding, the cop couldn't see me cause I had MY eyes closed". If you are in default of the contract, you are liable to be repoed. Simple and to the point. In most states, concealing(HIDING) leined collateral is a FELONY.
No license is required,however you must have liability insurance
"It is not mandatory, but it is very heavily suggested because it helps pay in the incident of an accident. You can get liability insurance or collateral."
Ouch! If your vehicle is up for repossession and you have moved from any state to Florida, you may find it difficult to register it or any other vehicle in Florida until the repossession matter is settled. Additionally, you can be criminally prosecuted in Florida if you attempt to hinder the lender in securing their collateral. Further, the repossession agents in much of Forida are among the best in the country, and the ratio of camera cars is pretty high; your vehicle will be found, and they will take it, probably at the most inconvenient time for you.
"What is a collateral bond?"
Robert I. Stevenson has written: 'Virginia and West Virginia products liability' -- subject(s): Products liability 'Perfecting security and other related interests in collateral under the uniform commercial code' -- subject(s): Security (Law)
A lienholder may purchase what is called Collateral Protection Insurance in the event the debtor fails to provide collision insurance. Remember, the lienholder is not concerned with the liability insurance policy that the state requires. They are only concerned with you maintaining insurance that protects their investment in the vehicle. If you are pulled over by the police, the Collateral Protection Insurance will not be adequate insurance for the polie. The police are looking for you to maintain liability insurance.
The collateral you put up for the loan will be seized (which may be done by repossession, foreclosure, simple forfeiture of ownership.. all depends on what it is, exactly), and then auctioned off. You will still be liable for any remaining balance once the collateral is auctioned off. Creditors may use collection agencies or even the courts to collect that debt.
It depends on the terms of the arrangement. In case you borrow cash to buy a vehicle, for instance, that automobile would be subject to repossession in case you default on the business loan. A line of credit can be secured without collateral; however providing something up will frequently lower your interest rates and give you access to greater financing.