Stop Repossession

Tips On How To Stop Repossession

Probably the single most important thing to be done to stop repossession of your car, your house, your furniture, or any or all of your belongings, is to take immediate action when you first get a warning sign that repossession is a likelihood.

Someone can't just show up and tow your car away because you're late on a payment, unless of course the contract you signed stipulates in exact terms that it can be done. Few contracts do that, and you shouldn't sign any contract that doesn't give you some wiggle-room, or time to plan a course of action if you fall behind in a payment.

In fact, even if the contract allowed something you purchased to be repossessed if you miss a single payment, the law is quite specific in that if someone intends to repossess your property, you must be given due warning first.

Get To Know Your Creditor - You can often stop repossession before the process ever gets started by being on good terms with your creditors, and getting in touch with a creditor at the first sign of trouble. Banks don't like to foreclose, since they're not in the real estate business. A car dealer would be reluctant to repossess a new automobile you've made less than half a dozen payments on, as they would then be in possession of a used automobile, which would resell at significantly less than it was initially purchased for. In other words, the creditor would prefer to work out some kind a deal where they could hope to eventually get paid, rather than taking the car and reselling it at a loss.

If you've signed a contract that you feel in unfair, you can always appeal to the courts, or in some instances to the Federal Trade Commission (FTC) to get some relief. Most businesses are very reluctant to get involved with the FTC, especially if there is a shady aspect to their contract. If the contract is in all respects legitimate however, the only way you're going to stop repossession is to try and work a deal with the creditor.

Prioritize And Follow Through - Another way to stop repossession before it can get started is to plan ahead. Planning ahead may be nothing more than recognizing your priorities and disciplining yourself to constantly address those priorities. In most cases your top priorities will be your home mortgage payments and your utility bills. Getting your HDTV repossessed isn't nearly as bad as losing your home, and isn't even as bad as having your power or water shut off. The car might even be a low priority unless your ability to earn an income absolutely depends on it.

Wants Versus Needs - Along with setting priorities, it's important to learn to distinguish between what you want and what you need. Fulfill your needs first, then with whatever money may be left over address your wants, or simply stash the money away.  Need a new car? How about a late model used car, one that still has the warranty in effect? You'll save money in purchasing or in making payments, and if it's repossessed, you'll probably be out less money than if it were a new car you've been making payments on.

Education - Perhaps of greatest importance in your battle to stop repossession is that you educate yourself in all the aspects of how to best go about it. There are books on the subject, and countless articles and offers (some of which are best avoided) on the Internet. The important thing though is the information you need to know is free, There are no “secrets”. Borrow a book from the library, or research articles on the Internet. After awhile you'll be able to distinguish between good advice and not so good advice, or advice that, if you pursue it, will make someone else a few dollars while not necessarily helping you. You can stop repossession by understanding and working the problem.