How Does Bank Auto Repossession Work?
Payment Delinquency When people wish to purchase an automobile, they often have to seek funding from a bank or financial institution. They then make monthly payments until the amount is paid in full. This is called a vehicle loan, and the payment status shows up monthly on all three credit reporting agencies: Experian, TransUnion and Equifax. When financial hardship strikes or the borrower falls behind on payments, they become at risk for repossession of the vehicle. Typically an automobile is repossessed after three months of no payments on the loan. The lender will make phone calls and send out letters that the account is past due and should be payable immediately to avoid a repossession enforcement. If the lender cannot work out a viable payment agreement with the borrower, they will ask them to voluntarily turn in the automobile. Many times this is not possible and a repossession order from a judge is obtained in order for the bank to repossess the vehicle. Auto Repossession Once a
