We understand that financially rough times like this can be exceedingly stressful and we want to assist you in making the best decision possible. It may be that Car Title Loans are your only option but you have heard warnings of defaults and repossession of peoples’ cars which makes you nervous to move forward.
It is true that Car Title Loans can help those who cannot find financial assistance anywhere else. Additionally, it is also true that Car Title Loans are not the best option for everyone.
Here, at TFC Title Loans, we would like to explain the lending process and risk of repossession to you so you can make an informed decision on what is best for your unique situation.
We have been in the title loan lending industry for nearly 25 years, making us the oldest title loan lender in California. Through those years of experience, we have gained extensive knowledge on ways to prevent or reverse the effects of defaulting and repossession in Car Title Loans.
As a company, we strongly focus on keeping a line of open communication with our customers so we can ensure that they succeed in repaying their loan and finding financial peace thereafter.
Ever since 1994, we have been very passionate about lender transparency and consumer education. We believe it is our responsibility as a lender to provide all the information that you need including the good, the bad, and the ugly. It is for this reason that we have been slowly but steadily expanding our website to include an abundance of informational resource pages covering all aspects of the lending process.
In this informative article, we will explain whether title loans can take your car along with all the options you have to avoid repossession. If you would like to learn more, then please continue reading.
In order to understand the concept of repossession, it is important to understand how title loans work and how they relate to the legal ownership of your car. An auto title loan is a kind of secured loan which means that the money lent is based on a piece of collateral; the collateral in this situation is your car.
The lender signs onto the title of ownership as the lien holder which gives them a legal right to the car if you do not repay the loan. However, you do not have to stop driving your car once the lender signs on as the lien holder. You get to keep driving your car as usual with no inconvenience as long as you keep making the regularly scheduled payments.
After a default has occurred, the customer who has defaulted may still be able to pay down what they still owe to the lender if they can get enough money in time.
But if the customer cannot afford to repay the loan and the lender needs to repossess the car then they are legally required to notify the customer with a repossession notice before attempting to claim the car. After a car is repossessed, it is likely that the lender will try to sell it at an auction.
The money that is made by the sale of the vehicle at auction is used to pay down the remaining balance on the loan. The auction price can occasionally be more or less than what the loan balance was.
So, if the auction price is less than the total loan balance, the customer will need to make up the difference. But if the auction price makes more than the loan balance leftover then the lender will return the additional funds to the customer.
If your car does get repossessed, there are still ways to remedy the situation. The tow yard can still accept a check from your lender and remove the thirty-day lending period on the vehicle so that you can get your vehicle back after repaying the lender. Additionally, a mobile notary could meet up with the borrower at the tow yard where the car is being held.
Essentially, the lender would need to pay the holding fee for the vehicle first, then the customer would have that length of time to pay the balance of the loan.
At TFC Title Loans, we work hard to guarantee that repossession is the absolute last resort. We highlight an open line of communication with our clients to produce an atmosphere of trust so they can come to us when they are struggling. That way we can avoid any complications from growing into real problems.