How Does The Auto Repossession Process Work?
Late Payments Lead to Repossession A financed vehicle loan that is in default (late on a payment) can lead to an auto repossession. The loan contract dictates when the loan is considered to be in default. Some loan companies provide for a grace period in the contract and some do not. Once the loan is in default, the lender can have the financed vehicle repossessed. Even if the borrower has defaulted only on the last payment due on the loan, the lender can still repossess. Before Repossession When an auto loan payment is in arrears, the lender usually sends a late payment notice to remind the borrower of the due payment. If the borrower still does not make the payment, the lender may send the borrower a notice of intent to repossess the financed vehicle. Depending on the contract and state law, the lender might not send either a late notice or a repossession notice. Usually lenders do, though, as a courtesy to the borrower. Repossession If the borrower does not bring the loan out of def
