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What is the credit obligation on voluntary repossession before any payments are actually made?
Wiki User
∙ 12y ago
To my knowledge there is no difference in the over all obligation,however it shows good faith and can save you money as the fees for voluntary and involuntary differ with the voluntary being cheaper also they are much more willing to listen to what you have to say and more willing to work with you as they know that your a trustworthy individual.They know bad things happen to good people but they also have people above them to answer to and with your communication it just takes the pressure of and makes the matter a lot easier on everyone.Whats this payment concerning I think your talking about an arrangement you may have made to the creditor to pay off the balance of what you may owe after the collateral is liquidated if this is the case then just as your original contract you know your obligation and it most likely was agreed upon between you and them and you should follow through with it if this is the case kind of a confusing question like most I see on here very limited details.
Wiki User
∙ 12y ago
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Can a creditor refuse a voluntary repossession and still demand payments?
yes, as this would make it easier to obtain a judgment and/or wage garnishment for whatever is owed.
Can't make the payments and can't sell what do I do?
Talk to the lienholder to see what they want you to do. You might be able to renegotiate the payments. As a worst case scenario, you could do a voluntary repossession, which at least saves you from having to pay the repo fees.
After voluntary repossession what is your credit obligation?
Keri, I suggest you think long and hard before you let it go back. The results are not nice at all on your credit rating. Read your contract where it mentions "deficency balance". Chances are that you will be responsible for any amount owed after the car is sold. If the payments are toooo high, ask the lender if they will lower the interst rate. If you have lost income but expect to regain it, ask the lender to defer a payment to the end of the loan. If you cant do anything else, try to sell the car yourself. You will get more for it than the lender will at auction. I totally agree with the above answer. Repossession should be the absolute last resort. A repossession is a repossession. The only difference in voluntary and non voluntary is that you will not have to pay the repossession fees. This will stay on your credit report for 7 years and will cost you dearly. Sit down with the creditor and work this out. Like the above answer sell the car yourself or see if you can get someone to take over the payments. Do not allow the car to be repossessed. This may seem like the easy way out, but in the end it is the hard way out.
How does a willing reposession effect your credit?
A repossession hurts your credit score whether it is voluntary or not. The creditor will report late payments, a charge off status, and a balance if one is owed. A repossession may hurt your credit score anywhere from 60 to 120 points.
What is the process of house repossession?
House repossession refers to the process by which a financial organization takes ownership of the house as collateral due to failed payments or inability to pay.
Can you set up payments for what is left after a voluntary repossession and the vehicle is auctioned?
You can always make an offer, but its up to the lender whether its accepted.
If you do a voluntary repo and get another dealerships car will that hurt your credit as bad as not making any payments for a repossession?
A repo is a repo is a repo.
Can a creditor refuse a voluntary repossession and still demand payments?
yes, as this would make it easier to obtain a judgment and/or wage garnishment for whatever is owed.
What are the consequences of a voluntary repossession of a mobile home?
Under US law as I understand it, any repossession is detrimental to your credit record. Both a voluntary repossession or a standard repossession have the same effect on your credit rating. Both will appear as repossessions, and either will result in a negative mark on your credit history. Any repossession will appear on a credit report for 7.5 years from the date of first delinquency. You will likely see your credit score drop significantly, as having a repossession in your credit history marks you as a credit risk. The only advantage that I see in doing a 'voluntary' repossession is that it may cost you less in legal fees. In general, I would encourage you to work with the lender to find ways of keeping your home and coming to some kind of agreement on reduced monthly payments, or even weekly payments which will involve a lower interest rate. Good luck with it.
Can't make the payments and can't sell what do I do?
Talk to the lienholder to see what they want you to do. You might be able to renegotiate the payments. As a worst case scenario, you could do a voluntary repossession, which at least saves you from having to pay the repo fees.
After voluntary repossession what is your credit obligation?
Keri, I suggest you think long and hard before you let it go back. The results are not nice at all on your credit rating. Read your contract where it mentions "deficency balance". Chances are that you will be responsible for any amount owed after the car is sold. If the payments are toooo high, ask the lender if they will lower the interst rate. If you have lost income but expect to regain it, ask the lender to defer a payment to the end of the loan. If you cant do anything else, try to sell the car yourself. You will get more for it than the lender will at auction. I totally agree with the above answer. Repossession should be the absolute last resort. A repossession is a repossession. The only difference in voluntary and non voluntary is that you will not have to pay the repossession fees. This will stay on your credit report for 7 years and will cost you dearly. Sit down with the creditor and work this out. Like the above answer sell the car yourself or see if you can get someone to take over the payments. Do not allow the car to be repossessed. This may seem like the easy way out, but in the end it is the hard way out.
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 does a willing reposession effect your credit?
A repossession hurts your credit score whether it is voluntary or not. The creditor will report late payments, a charge off status, and a balance if one is owed. A repossession may hurt your credit score anywhere from 60 to 120 points.
What happens if you voluntary repo a vehicle?
Voluntary repossession" is a term used to describe a situation in which a consumer voluntarily surrenders the property securing a loan, such as an automobile, to the lender that financed the purchase. Voluntary repossessions generally occur when a consumer has fallen behind on his or her loan payments, and decides to surrender the property rather than forcing the creditor to proceed with repossession. Voluntary repossessions occur most frequently with vehicles, but can occur with any type of secured loan, such as the purchase of work equipment, jewelry, etc.
How do you surrender a car to the bank or lender?
Bad idea!! This is called a voluntary repossession. Your credit will be ruined for 7 years, and you will still be responsible for the difference in what the bank sells the car for and the balance on the note. Go to the bank and sit down and work out new payments. Sell the car yourself and borrow the difference if you are upside-down on the loan. Have someone possibly take over the payments. Do whatever is necessary to avoid a repossession.
Is the surviving spouse responsible for outstanding debt on the voluntary repossession of a vehicle when they are a cosigner on the loan?
If there are payments outstanding, you, the co-signer, are responsible. That's the point of being a co-signer; you agree to pay the debt if the primary cannot.
How do you get my car back after repossession in Louisiana?
Make your car payments.
