Repossession

No, but if the bank writes off any portion of the loan as a cancelled debt and reports it you on Form 1099-C, then you must include that on your tax return as income. Cancelled debt is taxed as income under the Internal Revenue Code.

• Cosigning a loan means that you are willing and able to ensure that loan payments are made in any situation in which the other party fails to pay.
• As a cosigner you are just as responsible for the loan as your adult child. If the bank repos and then auctions the car you are responsible for any balance due and the bank will come after you not just your daughter to recover their money.
• Any repossession can and generally will be reported on your credit reports as well as hers. Additionally, since your financial situation is likely better than your adult child's, debt collectors would generally come after you more aggressively for repayment of any deficient loan balance.
• I would get the car from your adult child and make the payments. Have your adult child pay you directly. That way your credit is covered and it will also improve her credit.
• Take possession of the vehicle and pay it in full. Once you own it outright, you can give it to your adult child or sell it to anyone you choose and your credit will remain intact. If the bank already repo'd it, go talk to them, pay the loan in full and transfer the title into your name.
• Never cosign a loan for anybody for any reason unless you're willing to assume responsibility. The BLAME goes with BOTH of you. Your child for not being responsible and yourself for letting you get roped into this situation. Never cosign a loan unless you can be fully responsible for the loan just like it was your own. The principle party from a credit perspective will destroy your credit if they don't pay the loan and there is nothing you can do.

Usually the bank has a list of repo companies they do biz with and they pick one to repo the car. Maybe the closest to the car, maybe the cheapest, whatever.

They cant legally "threaten" to do do anything that they cant legally do, so the answer is YES, they can attach your home.

In MOST cases, you are responsible for the BALANCE DUE. Read the contract you signed to find out more on it. It is NOT something you want to forget about. lenders do get judgments for the balance and do collect them.

Your responsible to pay back the loan, plus all accumulated interest, fees, costs of collection, etc., as that was all provided to you as terms of your getting the credit and loan you asked for. If the property is recovered, after all the additional costs of doing so, doesn't pay the amount provides less than the payoff, the rest is still entirely due and owed by you. It is just no longer secured by the property. Any excess amounts are returned to you.

In bankruptcy you may have a different result, with the excess debt being possibly discharged.

Yes a private person can have a car repo'd but if the car was stolen like you stated then you must report this to your local police and let the piece of trash that stole it go to jail.

Yes, you can have a car repoed. BUT if its been 'stolen" as you posted, wouldn't that be putting a repoman in danger ???That's why very few repo cos. do "private party repos." few people take the time to get the paperwork right, ect. Then they want it done for almost nothing. Its best to leave the "stolen" cars to the cops and the financing to the lenders.

You can take possession ONLY if your name is on the TITLE. Otherwise, you should contact the OWNER(primary borrower) and attempt to work something out to get possesion AND talk to the LENDER about putting the loan in your name ONLY. Dont mess with it if your name is NOT on the title.

BEFORE I SAY ANYTHING, DONT COSIGN FOR ANYONE. IT RESULTS IN UNNECESSARY GRIEF AND STRAINED RELATIONSHIPS.

The documents that the lender has you sign is to protect them, not you. You need to have a side contract that states that what your rights are if the primary buyer defaults. I would have the primary buyer and the lender agree that you can purchase the loan contract from the lender for the remaining balance and can excercise all the rights of the bank. In that document, you should also take a second lien in the collateral. Lastly do not rely upon or act upon anything I have said here before consulting your own attorney.

<a href="http://repo.net/ourqualifications.htm" tagged="_blank"> Your Freind,

Don - The Cynical Patriot</a>

barb, you will need to prove that the repoman pulled your car in park. Why??? Because he could have unlocked the door, opened the hood and pulled the shift cable off, then put it out of gear. That only takes about a minute and a half. The fact that it was 2 weeks before it broke makes me at least wonder. However, the LENDER is ultimately responsible for any damages incurred during and after repo.

The tow company is responsible for any damage incurred during and after while it is in THEIR possession.

I am very curious to who "Roosta" is and wherein he has received his knowledge of Repossessions? Barb, I would check your local state statutes and also your contract. Contrary to what you are being told the repossession company or finance company are not responsible for the damage unless they were PURPOSEFULLY NEGLIGENT. Most State Statutes would call your situation "An Asumption of Risk". In otherwords, you assume the risk of possible damage by allowing yourself to be put in a position to be repossessed. As far as my knowledge? I own a repossession company, sat on our state association board for 2 years and average 150 repossessions a month. Be cautious who you take advice from.

by roostaI don't know when you posted this, but if you see it, feel free to email me wonk at 14ma dot com. Do you think the opposing counsel will not show the repo company PURPOSELY NEGLIGENT for pulling a car in park??? Once you hook the car, YOU assume responsibility for damages. That's why Prime, ect. make money. Repo companies that cant/wont invest in equipment to do the job properly. As to your other point about the lender, the lender is the one who ordered the repo, so they have to pick up the ball if you fumble it. Thank you for your reply.

I own a repo company and on our repo order we have what is called a ''''hold harmless agrement'''' witch is a legal document stating that the lender gave me permition to repo a vehicle and will be held harmless for and against any and all claims,losses,and actions, except unlawfull acts of our firm. Which means the lender hired us as a contractor to recover the said vehicle and not be held responsible but the lender is. But don't count your chickens yet.. This is lenders we are talking about and they don't want to pay for anything, so in your contract you signed when you bought your car it probobly says that if this happens you will be the one to pay for it because you are in default of a signed contract.

I think the B/K is the lessor of the 2 evils. from what I've read, its better(if there is such a thing) to wait until the creditorsget the judgments. The do the B/K thing and get the repos and judgments taken off at one time.get legal advice before you do B/K, it stays on your record for up to 10 yrs.

IF you plan on getting it back, dont drop it. If you're NOT getting it back, drop ASAP. The lender has coverage.

Good answer.

If you can't afford to get the car back, drop the insurance. You should not have coverage on the vehicle that is not longer in your possession. Let the lender assume the responsibility. Why pay for something you don't have anymore?

NO. It can be sold any way the bank wants it to be sold

My car was stolen by an ex, Did you REPORT it stolen?

who phoned an insurance agent about cancelling policy on the stolen car WHOs name was the policy in?? I cant cancel YOUR ins. but I can mine.So, this whole mess was supposed to be in litigation with the insurance co included. that's one issue in itselfI have been charged with a reposession due to default. I refused to pay a car payment each month for something that was not tangible. ***THIS is another issue between YOU and the LENDER.The insurance agent illegally uninsured my car and refused to estimate it. YES if you didnt pat the payments, you were in DEFAULT of the loan. So, undoubtedly YOU had the loan, who had the ins.?? That problem should help settle the repo problemAm I liable for this repossesion?

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.

Danielle, VERY POSSIBLE. it is also possible that someone didnt get notified. Once GMAC assigns a repo, it will be on the hit list until GMAC closes the account with the repo co. There is NO time limit on when a repo is performed. Was it stolen??? Call the police and report it stolen. They will tell you if it was called in as a repo. Looks bad on you when you try to call a repo in as stolen. Call GMAC, they know if it was repoed. Good Luck

They can only LEGALLY repo your car IF you are in DEFAULT of the contract. That could be no payments, no insurance, using the car for an illegal purpose, ect. Is there any requirements in your contract that you may have not met? If you are NOT in default of the contract, call an attorney NOW. Good Luck

James, why would you want to drive a car for a year and NOT pay on it?? Are you nuts?? LOL Turn the car in and this will go away. take it to a dealersip and leave it. When they call again, tell them you "saw" it at such and such dealership. Give them the name of the dealership so they can confirm that its there. Simple???

NO they cannot arrest you. This is a civil matter not a criminal matter. If they have no court order then you cannot be arrested for refusing to turn in the car. If you keep the car hidden they then can go to court and get ajudgement on you. Then you must return the car. In that case failing to do so is violating both the civil law (which you cant be arrested for) and the criminal code (contempt of court...in laymens terms not doing what the judge or sherriff tells you to do after they obtained a judgment).

Mark D: ever heard of a "Writ of Replevin"? The sheriff goes after the car or YOU. One or the other. I'm serving one Monday. Wanna watch a truck magically appear?

Ya know, I haven't made a car payment in a year n 4 months either. And I'm glad to say the car is now mine. Thanks to the repo dike who had no clue on the repo laws, and screwed up by committing a Breach of Peace. Now I have made a civil suit against them all. Learn your rights. Because of the repo lady I am now Evan more disabled than I was before and to top it off, the police dept. would not give her the car, they told her to leave.

Certainly, all that is necessary is that service is attempted and you have proof of those attempts. If service is physically unsuccessful, you attempt to service the person by registered, restricted delivery, return receipt mail. If this fails, you have the person served by public notice. Once this is accoumplished, you petition the court for a date, show up, and receive your judgment by default.

Debbie, I'm sorry that you lost your brother. Your parents are responsible for the balance due on the bike UNLESS there was life ins. on the loan to cover it. Their best option is to (borrow the money to) PAYOFF the loan NOW. Avoid any more interest and/or FEES. Next option.. MAKE AN OFFER !! Have the cash ready when you make it.Maybe $2000???? Good Luck

joe, think about it. YOU are the owner, they are the lender. OWNERS report cars stolen. Some of those lying,cheatin,lowdown repo people will tell you its reported stolen to try to get you to GIVE IT UP. IF its REALLY stolen, YOU(the owner) should report it stolen to help the lender out. It will benefit you in the long run.

The answer to your question is simple; Of course the lender,ie:LIENHOLDER can report the vehicle stolen. Here's why; even though the registered "owner's" name may be on the registration, until you FINISH making your PAYMENTS to the LENDER, they still very much own it. Which is why financing takes you 3-5 years, before you actually "own" what ever it is that you've purchased.

Actually this is another one of those ones that depends on state laws where the vehicle is registered.

At the time the vehicle was taken into possession of the OWNER it was not stolen and so once the loan goes into default that does not constitute theft but is infact a civil matter that local law enforcement has no effect on. That is why we have the two methods of "Self-help" and "Judicial Process" to recover a vehicle.

The lender could actually face criminal charges for filing a faults police report when they know in fact that the vehicle is in the possession of the OWNER. Now if they receive notice from the OWNER that they no longer have possession and that they did not give permission to whom ever is currently in possession of the vehicle then that may be classified as theft.

Ultimately though no repossession can take place using force or threat of force and that includes telling the OWNER they are driving a stolen vehicle. That will come to bite any asset recovery agency in the ass if such conversation was ever recorded or otherwise proven in a court of law.

In other words just don't do it. Best practices for legitimate repossession companies usually follow these and other strick guidelines.

Not all repossession agents are low life lieing scum. Only a low life lieing dead beat debtor would feel that way about us. ;-)

I don't believe the first poster said ALL repo people are lieing cheating...etc. he said some.Broad statements about any group are usually not valid.Iam amazed at the repo guys on this site(and there are plenty including the moderators) who try and defend any action by a repo person legal or not just because they are fellow repoers.Maybe they will figure it out when their liabilty insurance skyrockets because of the actions of a stupid few.....then again maybe not.

James, don't know what state you are in But unless your state prohibits it, YES. The lien will "attach" to the property and when she gets ready to sell it, lien will have to be satisfied first.

NO.They can only go after what property was secured by the loan.

Anon, It depends on how much you put as down payment and how HIGH an interest rate you are willing to pay. There are SUB PRIME lenders in every market waiting for you. Good Luck

Mike, that depends on how great your credit is. A repo on your record is NOT going to help. Any interest rate you get will be HIGH because of your credit rating. With a decent down payment you can always get a ride at a buy-here-pay-here car lot. Good Luck