Talk through your situation with your title loan lender to see if there are ways to work out the rest of your payments without losing your car. Or you can refinance your loan with a new lender through a title loan buyout.
If you are currently searching google frantically on what to do if car is repossessed after title loan, then you are probably a bit worried at the moment. This might be an extremely stressful time for you and our top priority in this resource page is to help you feel more at ease. At TFC Title Loans, we like to give hope in tough situations like those of defaulting or repossession. We have seen thousands of customers through their title loans successfully over the past 25 years. But, of course, we have had clients who struggled; struggled even to the point of default or repossession.
We have learned extensively through those experiences so we can make the occurrences as few and far between as possible. Additionally, we have used that experience to imagine new ways to reverse the effects of defaulting and repossession. We focus on keeping an open line of communication with our clients and strongly believe that it is never too late to turn a bad situation around. Here, at TFC Title Loans, we believe we have a responsibility to all of our clients. A responsibility that demands we assist them throughout the entire lending process by giving them strategies, helpful tools, and alternative options if they are struggling to pay off their loan or have already defaulted. In this informational resource page, we will explicate all the options and/or steps you must take when you find yourself in a difficult situation with your title loan.
Ever since we first opened our doors in 1994, we have stuck by our principles of friendly customer service and lender transparency. This company culture has drawn thousands of customers to obtain title loans from us or seek out our assistance when they need help. Consumer education is the top priority for us which is why we long to help in any way we can as you are struggling through the loan. To learn more about what happens if you default on a loan or your car is repossessed, then please continue reading.
After a default has occurred, the borrower may still be able to cover what they owe the lender if they can get enough money in time. However, if the lender needs to repossess the car then they are required legally to notify the borrower with a repossession notice before attempting to claim the car. When a car is repossessed, it is most likely that the lender with sell it at auction. The money that is made from the sale of the vehicle will go towards paying down the remaining balance on the loan. The auction price, can on occasion, yield more or less funds than those demanded by the loan balance. If the auction price is less than the loan balance, the borrower will need to make up the difference. On the other hand, if the auction price is higher than the loan balance the lender will be required to return those additional funds to the borrower whose car was repossessed.
If your car has been repossessed, not all hope is lost. In the event that the car has been repossessed, the tow yard could accept a check from your lender and lift the 30 day holding period of the vehicle if you can come up with the money to repay the lender. A mobile notary could meet the borrower at the tow yard with the contract and check so the borrower can get their vehicle back. Basically, the lender would pay the place holding for the vehicle first, then the borrower would have however long the contract is set for to pay it back. The borrower could even pay it back early and have the car back sooner.
At TFC Title Loans, we work very hard to ensure that repossession is the absolute last resort. We emphasize an open line of communication with our customers to create an atmosphere of trust so they can come to us when they are struggling. That way we can prevent any problems from growing into real issues.
Now that you have a better hold on what step you can take after a default or repossession, we hope you feel more at ease. If you have any remaining questions regarding the matter, then please give us a call today. We have understanding customer representatives who can talk you through this trying time. However, if you do not currently have a title loan or would be interested in refinancing your current title loan with TFC Title Loans, then fill our simple and quick online application today.