What Happens After a Voluntary Auto Repossession?
negotiations with the lender you finally come to the realization that the best thing to do is turn the car in to the lender. Once you call the lender and tell them to come and get the automobile it is considered a voluntary repossession. The lender will now take possession of the car and they will try to sell it for whatever they can get normally at an auction. Unfortunately after they sell your car there could still be a balance remaining which sometimes you could be liable for. The balance remaining is called the deficiency balance, but you may not be liable for the balance. It is best to check with the lender before they repossess you car and also look into the applicable laws for your state. If it turns out that you owe a balance after the repossession the creditor will probably make some agreeable arrangements to help you pay off the balance. This will show up on your credit report as a voluntary repossession which will definitely lower your credit score. It could impact your abil
After many months of trying to come up with the money and endless negotiations with the lender you finally come to the realization that the best thing to do is turn the car in to the lender. Once you call the lender and tell them to come and get the automobile it is considered a voluntary repossession. The lender will now take possession of the car and they will try to sell it for whatever they can get normally at an auction. Unfortunately after they sell your car there could still be a balance remaining which sometimes you could be liable for. The balance remaining is called the deficiency balance, but you may not be liable for the balance. It is best to check with the lender before they repossess you car and also look into the applicable laws for your state. If it turns out that you owe a balance after the repossession the creditor will probably make some agreeable arrangements to help you pay off the balance. This will show up on your credit report as a voluntary repossession which
