Home Mortgage Foreclosure

Keeping all the various record, documents, traces and other data managed and organized for a repossession company is often a challenge, especially if they are a larger, high volume company or agency. Using one of the many different types of repossession software available on the market makes record keeping simple and easy plus allows virtually instantaneous access to records, files and data.

Most repossession software is now simple and easy to install and customize, meaning that even those less than computer savvy individuals can easily use the software to manage and keep accurate records on their repossessions. The repossession software now on the market all comes with help information and frequently asked question sections, plus there is typically a free help line so you can call in and talk to a company representative or support service.

Some points to look for in repossession software are:

? Does the software offer multiple functions such as an easy to use database of clients and repossessions as well as a financial and accounting component for easy billing and payment recording?

? Does the repossession software offer any type of security guarantee or some type of encryption to protect both your client’s as well as your company information? What documentation is provided with regards to the system’s security?

? Are employee records and employee work tracking options available that make payroll easy and simple to complete? Is the program flexible enough to match your current payroll and employee record system or do you have to change your system to meet the pre-loaded program on the software?

? Is there a remote access option to the software and how is security provided for that option? This can be a big factor to keep up the minute information on repossession and skip tracing.

? Can vehicle information, pictures of the vehicle and vehicle condition reports be uploaded into the system or inserted into the various files and databases?

? Is VIN tracking available and how is it updated with the Department of Motor Vehicle records?

In addition it is important to look for a repossession software program that you are comfortable with. Most software programs have websites that offer a free download or a virtual tour of the software to allow you to experience the repossession software before making a purchase. Try looking at or using the trial version of a couple of different systems before choosing one. The more repossession software programs that you try out the more you will understand the wide variety of benefits to the software package and the options available.

There is really only one way to actually make a repossession stop, and that is to contact your creditors before the repossession process begins. In some areas and states the creditor has to legally notify you of a repossession, while in other’s they don’t. In the case of a home repossession, you will be notified regardless of what state you live in but a car or other item can be repossessed with just one skipped or defaulted payment, depending on the financing agreement and purchase contract that you signed.

Making a repossession stop usually includes being able to make a lump sum payment on the outstanding balance of the defaulted payments, paying off the loan in entirety or coming up with a schedule of repayment for the missed payments plus the future payments that the lender accepts. Using these options to make a repossession stop are the basic options, there may be others such as selling the item and paying the lender from the sale. In most cases in the “short sale” scenario the original borrower will still need to add in some cash to make sure that the loan is paid off in full.

Making a repossession stop, even if it means taking out another loan, often makes good sense if you have the ability to pay both the original loan as well as the second loan. A repossession is a huge negative on your credit score and rating and will remain on your credit record for seven years. Is some cases a repossession, especially on a large item such as a car or a house can prevent you from being able to get a loan for long after the seven years as it is likely that there have been other non-payments of loans on credit cards or other debts prior to the repossession which will often show up after the repossession occurs.

It is important under these situations that you acknowledge and proactively work towards preventing the repossession. Stop hiding or pretending that if you don’t open the letters from the creditors they will just go away. This is probably the biggest mistake that consumer’s make and it is easy to correct. Usually if you contact the creditor either before or immediately after the default in the payment they will be willing to consider your suggestions and work with you. If you allow the default payments to occur more than one payment period or simply don’t respond to their calls and letters the lender has little choice but to move towards getting their property or item back.

Getting the advice of a credit counselor, attorney or other financial expert is a great idea if you are worried about repossession. Often working with these professionals will help your lender understand you are serious about correcting the problem and have a plan for the future.

Repossession is an unpleasant thing. The consumer doesn?t like having their things taken back and most companies don?t like having to hire someone to take them back. Consumers and companies both deal with the stresses and costs of having things repossessed. Recent information shows that there is an increasing need for repossession service companies across the United States.

Repossession service is usually needed when a consumer fails to make payments for an item that is being bought in installments. An example of that would be buying a car on credit, as it is not officially owned until all payments have been completed. A repossession service could be used to
take the car if the consumer stops making payments.

If a consumer has an asset that they already own, it could still be repossessed if it is being used as collateral. A common example of that would be a dept consolidation home equity loan; the home is being used as collateral. If payments were to cease on the loan the lender could and probably would seek a repossession service and repossess the home.

Any company that is has customers causing them to lose money due to non-payment may want to consider repossession service. The use of a professional repossession service may be the best way for a company to recoup some of its losses. Taking this course of action will ensure the legalities and effectiveness of the repossession. Companies looking to hire a service should look for several things:

? Affordable repossession service. The prices for the service can range widely. The company is already losing money so being cost effective is important.
? A company that is bonded and well insured.
? Repossession service that is in compliance with state regulations if there are any. Some states have very strict regulations while some states have very few if any. Know what the regulations are for your state.
? A repossession service which employs agents who are experienced. The agents should be acquainted with the laws of the land. If the agent has enough knowledge it will help to avoid accusations of illegal repossession.
? The company should have a rating with the Better Business Bureau also known as the BBB.
? If the company has investigative services available to them it could be helpful. It would help in tracking down an asset or an owner who has moved to avoid the repossession.
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While it is within the rights of a company to repossess items for non-payment this always the best option for the company. The use of a professional repossession service as a last resort can be a valuable asset to a company and can help to avoid many legal hassles, repossessions that are illegal, and other problems.

There is a lot of information, but also a lot of misinformation, about various types of repossession. Houses and other types of properties, like anything else that is bought through a loan or financing, is subject to repossession. Houses and properties typically have a much longer grace period or pre foreclosure period prior to the actual foreclosure and repossession than smaller items such as car, electronics or appliances. Since houses are much larger and many times more money that other items subject to repossession there is absolutely no need for a quick repossession. Houses are typically best managed if the current resident, commonly called the owner, can stay in the house and manage to either refinance the loan or get a modification on the loan.

As with any type of repossession, houses and properties can only be seized under very specific conditions. The loaner or lender must notify you, usually through a registered letter, that the payments have not been received as per the financing agreement. The lender should supply a record of payments and what balance is outstanding, the description of the property and the physical address, your name and information as well as what the lender is requiring to happen to prevent the foreclosure or repossession. Houses going into this pre foreclosure stage may also be listed on various pre foreclosure websites, so the owners should be prepared for a flood of letters, postcards and even phone calls to purchase the property or to refinance the loan.

Owners at this time need to seriously consider their options and to contact the lender to try to work out a plan for repayment and modification of the loan. Lenders typically will work with the homeowners to prevent having to go all the way through to foreclosure and having to repossess the house. Lenders are much farther ahead taking a lower monthly payment over a longer period of time than the original loan then they are trying to sell the house once it has been repossessed, especially in a downward housing market.

You may also file a hardship letter or a specific claim form that is provided in the information sent by the lender. It is important to appear at any court hearing to explain your situation and get your options for resolution on the record if you are given the opportunity. Getting an attorney is also important in the case of repossession. Houses and properties that are subject to repossession are typically handled by a real estate attorney that specializes in foreclosures.

One of the most common types of repossession is vehicle repossession and most repossession companies will do the bulk of their business in this area. Since vehicles are highly mobile, often trying to complete a vehicle repossession is not an easy process, especially if the owner is aware that their vehicle may be seized. Individuals that work for or own vehicle repossession companies must be aware of what they can and cannot do from a legal perspective to get the car they have been sent to find.

Probably the biggest challenge to most agents or “repo men” is to locate and confirm the identification of the vehicle they have been sent to repossess. This means that they must somehow gain access to the vehicle to verify that the VIN or vehicle identification number on the car or vehicle matches the VIN on the repossession paperwork. The VIN is typically displayed on the dash by the front window and also on the driver’s door. Owners can cover the dash VIN and keep the vehicle locked, making it difficult for the confirmation to be made.

Many consumers that know that their vehicle is going to be repossessed will engage in activities such as hiding the vehicle or locking it up on a property, or storing it somewhere other than their home or residence. Since individual states will have different laws regarding a vehicle repossession, each agent must be sure they are acting within the laws of the state with regards to going onto property and removing vehicles. Repo agents cannot come onto private property to just look around for the vehicle and the owner has no requirement to allow the agents to search the property. In some states and cases where the property resident calls the police, the repo agents can be charged with trespassing, depending on the actual activities they were engaged in while on the property.

In many states the repo agent can only remove the vehicle off private property if the vehicle is not in a locked yard or in a building that is locked. If the vehicle is parked on the driveway or on the road in front of the house it can be seized and towed or driven away. Public spaces are typically fair game, however if the owner is present and refuses to surrender the vehicle the repo agents cannot use physical force or threats to the individual to secure the vehicle. In all states vehicle repossession must not “breach the peace” or violate any personal or property laws. The repossession cannot damage or destroy any property in any state and if this happens the property owner has the right to claim for damages through a court procedure.

Generally vehicle owners don’t simply choose to stop making payments on their cars so that they will be repossessed. Typically what happens is that there is some type of a change in the individual’s financial situation that prevents even the most financially responsible consumer from being unable to make their car payment. Some of the issues that can lead to a missed payment or payments include:

? Illness or death in the family
? Loss of employment
? Disability
? Personal tragedy

Thankfully most lenders are more than willing to work with consumers and borrowers through problem times, however all consumers that are behind in payments or are going to miss payments on their vehicle should be aware of car repossession laws in their state. Car repossession laws have to be followed by the repossession company or you, as the consumer, may be able to go to court to sue for damages or to limit or eliminate any deficiency payment that the lender may be requiring.

The first concept that consumers should be aware of is that under car repossession laws until the final payment is made on the vehicle, often called the title transfer, the consumer is not the owner of the car. The owner of the loan, typically the dealership, has the right of ownership and the consumer has the right of possession. This means that the owner (dealership) has a right to take back the vehicle if the loan agreement is not honored. It really doesn’t matter if you default on the first or last payment, until the loan is paid as per the signed agreement, the lien or loan holder can repossess the vehicle for non-payment. The number of payments that must be missed to start the repossession should be clearly stated in your loan or financing agreement.

Another key concept is that each state has their own car repossession laws and not all states are the same. In some cases the dealership must go to court and get a judgment to proceed with repossession and the owner is notified of the hearing and can appear in court on his or her behalf. In addition the owner is notified of the pending repossession. In other states there is no judgment needed, nor is the creditor required to let the consumer know that they are repossessing the vehicle. Understanding what your state requires with regards to notification is an important part of the car repossession laws.

Once the vehicle is seized it can either be sold at auction or retained by the creditor and evaluated at current market value. Car repossession laws prohibit the creditor from selling the car at a below fair market value or giving you less credit that what the car is worth as per industry accepted prices. If this happens the consumer can take the dealership to court in order to have the deficiency payment lowered or even completely removed by the judge or through a hearing.

The auto repossession business is a very lucrative industry. The business is based on a healthy market for creditors who do not wish to be responsible for the physical act of repossessing vehicles. The industry yields over a billion dollars yearly although of the general public has very little knowledge about the auto repossession business. There are thousands of these small and large repossession firms in business in the United States. Most of the operators in the auto repossession business are not listed in the phone book and do little to no advertising as the abundance of business does not make it necessary. The operators usually just directly contact specific creditors that are in need of the services.

The auto repossession business is a great money maker for several reasons:

? There is a lot of work available during any economic cycle.
? In comparison to the actual time needed to perform a repossession the fees charged are high. Generally, fifteen to thirty minutes is all it takes to perform repossession. The repossession will usually yield a profit around 200 dollars or more.
? Creditors will usually use the same auto repossession business repeatedly due to the abundance of business. A reputable auto repossession business may at times have more business than it can handle.

To obtain a better understanding of the auto repossession business, it is important to understand why and how the repossession is given to an independent agency. Most companies that enlist the services of an agency in the auto repossession business don?t want to have the additional task of actually repossessing an automobile. Often times before a vehicle is repossessed some investigative work must be done. This research is usually needed to locate the subject of the repossession or the subject?s vehicle. Since some people will try to hide the vehicle to avoid repossession, this is a critical component or the success of the repossession effort.

The auto repossession business can be a hectic one. However by law the actual repossession must be done in a peaceful way. Most people get rather upset when the repo man comes to seize their automobile; because of this a lot of repossessions are performed at night or at the owner?s place of employment without their knowledge. Repossession done in this manner usually is peaceful due to the lack of the owner?s knowledge that their car is being seized. Before the auto is repossessed the agent attempting to seize the car will make sure they have the right car and this is done by matching the VIN number they have to the one in the automobile. The person repossessing the car will most often notify the police what has occurred to avoid any problems if the owner reports the auto stolen.

While there are lots of fairly easy to find and surprisingly easy to understand legal websites out there, reading through a few quick FAQs about repossession law is often all that most people need to get a general idea. Whenever you are in a situation it is important to get legal advice on repossession law as it does vary from state to state. In addition the specific repossession law that applies in your situation will vary depending on the type of item that is being repossessed as well as the terms of your agreement with the lender.

The following are general information questions about repossession law issues that apply throughout the United States:

1. If something is repossessed, do I still owe any money or is my debt cleared?

Repossession does not clear your debt and in most cases it can actually add to the amount of money that you owe the lender. The lender must credit you for market value of the item, however that will be the used price, not what you purchased it for. In addition you will have to pay legal fees, repossession charges and even the legal fees the lender incurred in the repossession paperwork.

2. I have made almost all the payments on my car and I heard that it is no longer possible for the dealership to repossess the vehicle. Is that right?

Unfortunately that is not correct. The lender has the right under the financing agreement that you signed and the repossession law to take back the car any time the note is in default up and until the final car payment. The lender actually holds the title to the car until that final payment is made, technically making it his or her property.

3. Can a repo agent take my car from my place of work?

Yes, they can. Often repossessing a vehicle at your place of work is a typical repossession company strategy. It prevents issues with going on your private property and it also tends to be less confrontational and less likely to result in someone calling the police.

4. If the property the repossession agent wants is in my house, can they come in without my permission?

No, the repossession agents cannot do anything illegal such as entering your house or residence using force or against your consent or permission. They cannot breach the peace or break any laws in the completion of the repossession or you may be able to take them to court for damages.

5. Do lenders really work with consumers to try to resolve non-payment issues?

Generally most lenders would rather work with people than go on to repossession. If you know you can’t make a scheduled payment call the lender, explain the reason and have a plan to present on how you can repay the defaulted payment and get back on track. Talking to the lender as soon as possible and up front of defaulting typically results in a better solution for both the lender and the consumer.

Knowing auto repossession laws for your state is important, even if you are not in the position of possibly having to deal with repossession of your vehicle. It is reported the repossessions are up over 21%, and this number continues to grow every year as more and more consumers find it harder and harder to make monthly payments on mortgages, cars, student loans and general living expenses in the decreasing economy. Having a general knowledge of auto repossession laws will allow you to direct and support your friends and co-workers that may find themselves in this unfortunate situation.

Some key perspectives and concepts that consumers need to keep in mind with regard to auto repossession laws include:

? Each state has different laws on how repossessions can occur. Some states don’t require that the creditor needs to let the borrower know that the car is going to be repossessed, while other states do require this notification.

? The auto repossession laws are designed to protect the lender and the borrower and there are specific rules that each must follow to fulfill their legal requirements. While many people feel that the laws only help the lender, they also protect the borrower from property damage or any types of illegal actions that could potentially be used to attempt to seize the vehicle.

? There are attorneys that specialize in helping consumers that are facing some type of repossession or have had their property repossessed. If someone is worried about repossession, talking to an attorney that works in the area of auto repossession laws can really provide detailed and specific information to help avoid repossession.

? Lenders can work within the auto repossession laws to avoid having to move to actually seizing the car. The more that the borrower or consumer is willing to work with the lender the more likely that some type of repayment plan can be developed. Borrowers that try to hide the vehicle or thwart repossession often have limited options when it comes to negotiating with the lender or car dealership.

? If your creditor or lender has previously accepted late payments on your loan he or she, under auto repossession laws, may not be able to repossess your vehicle. This is because they have previously accepted the change in the payment plan, basically invalidating the original contract. If you know that this has happened, be prepared to show the dates where late payments were accepted.

There are many little details that can occur during the repossession of a vehicle that may make the repossession open for a counter legal action. Talking to an attorney and understanding your rights as a consumer is the first step in ensuring you have been treated correctly through the process.

Unfortunately for many thousands of consumers there are a huge number of myths around the concept of voluntary repossession. Since many fraudulent marketing agencies, con artists and general scam websites repeat these myths some consumers, particularly those already stressed with financial problems, fall into the traps these individuals offer as quick “get out of debt or financial trouble” programs. By taking the time to research through a reputable credit counseling service, through the Better Business Bureau or talking to an attorney or legal advisor about your options for either voluntary repossession or involuntary repossession, you will have a better understanding of your options.

The following are the most common myths about voluntary repossession, which is surrendering the item to the creditor without the need for the creditor to go through a repossession company or court process, depending on where you live.

Myth 1 ? Voluntary repossession won’t affect your credit rating.

While most of the scam sites or telemarketers don’t come right out and make that statement, they carefully word their script to imply that a voluntary repossession is better for your credit score than in involuntary repossession. In reality they are both treated exactly the same by the three major credit reporting agencies. They both have a huge negative impact on your credit score and will remain on your record for seven years. Even a small voluntary repossession like a stereo or a computer system can have a very negative consequence.

Myth 2 - Once you turn in the vehicle or item, you are free from debt.

This is another very misleading assumption that less than reputable credit companies will attempt to use. In reality even in a voluntary repossession you will be responsible for the difference between what the item is valued at now and what the outstanding balance is. For example, a car that was purchased for $30,000 is repossession with $5,000 paid on the loan. The car is then sold at auction for $21,000, leaving an outstanding balance on the loan of $4,000 which the borrower is accountable for. Co-signers will also be included in both the negative credit ratings as well as the legal requirement to pay any outstanding balances.

Myth 3 ? There are no fees involved in a voluntary repossession.

Just like any type of legal action a voluntary repossession has associated legal fees and charges. While you will avoid paying the cost of the full repossession fee, you will still have interest fees, legal fees and possibly even storage fees.

When talking to your lender be sure to understand what benefits you can expect from a voluntary repossession. If you seem to be getting misleading information, be sure to check with an attorney or credit counseling agency before making a decision.