What Are the Steps in the Repossession Process?
The repossession process often varies depending on the jurisdiction. In most cases, however, the process starts with late-payment reminders followed by a letter that lets the debtor know that repossession efforts will soon begin. If the debtor fails to pay after receiving such a notice, the creditor may then go on to seek a court order allowing it to take possession of the property, or the lending company may hire a repossession agent if a court order is not required. If the property that is being repossessed is a car, it may be towed away and sold. If the property is real estate, however, it may be sold in a private sale or auction. Often, the repossession process starts with reminders that a person has fallen behind and failed to make payments as expected on his account. These reminders may be sent through the mail, via e-mail, or even by phone. In fact, some creditors use all three methods in an attempt to get the attention of debtors. Some creditors also offer payment arrangements
