It is a good thing when we can realize the American dream of home ownership. Along with the home ownership comes a lot of financial responsibility. Unfortunately due to circumstances some people may find themselves unable to maintain the biggest responsibility; the payments. When the homeowner is unable to keep up with the payments he is at risk of house repossession.
When and if the legal action of house repossession is started it will occur in several stages and can take weeks or months to from start to finish. At any stage during the process the homeowner may be able to stop the process. If the homeowner can bring the mortgage payments up to date the process will immediately end. It is actually to the advantage of the mortgage company to keep you in the house paying off your mortgage and house repossession is usually a last resort for them. The quicker action is taken once the process has begun the more options and lower legal fees for the homeowner. Each stage has its own rules and procedures and if they are not followed the house repossession may not proceed as planned.
For a house repossession to occur there must be a sound legal reason. The most common reason is for delinquency of mortgage payments. The lender will work with the homeowner to try to refinance, modify the mortgage or come up with some other repayment plan. Once the lender plans to go forward with house repossession a letter requesting that the payments be made current will be sent to the home owner. If the issue is not resolved at this point the lender will then send a letter informing the homeowner of the possibility of court action. If no resolution comes from that action, the homeowner will be notified of the court order seeking possession of the house.
The court will notify the owner if the time and place of the hearing. At this time if the owner has not done so previously, it would be a good idea to seek qualified legal advice about the situation. The homeowner must reply to the courts; failure to do so would not be in the best interest of the homeowner. The homeowner should obtain legal counsel to represent them in court.
At the hearing the judge will listen to both sides and a decision will be made as to what should happen next. The judge has several options, some of which include allowing the homeowner to stay in the home under certain conditions, like repayment of the arrears; allowing the homeowner time to avoid house repossession by selling the house themselves or the judge may follow through with eviction.
If the judge decides to allow the house repossession, the homeowner will be given a date to vacate the house. If they do not leave voluntarily by the date set, the lender may have law enforcement to assist in having the house vacated.
Just like most reputable and reliable dealerships, the Galpin Ford voluntary repossession department is there to assist consumers in returning vehicles when they can no longer afford to make the required payments. It is important to communicate with the staff at Galpin Ford voluntary repossession department prior to any delinquency in the payment as often a modification in the contract or loan agreement can be completed which will prevent the need to move forward with either a voluntary or involuntary repossession of the vehicle. This is especially true if your financial problem has been resolved and that you can't foresee any future problems in making payments. Working with the Galpin Ford voluntary repossession department proactively is far better that waiting until you have no options left and then surrendering the vehicle.
Usually when working with the Galpin Ford voluntary repossession department or any other dealership financial department the first option is to try to modify the repayment plan to meet your needs. Since most dealerships would rather avoid doing a repossession, even voluntary, you may be surprised at what they are willing to consider. Always be reasonable with your budget and don't promise to make monthly payments that are not possible, this will result in a second default and may make repossession the only option the dealership will consider.
Keep in mind that any voluntary repossession, which means that you bring in your car and surrender it for non-payment of the loan, is going to be a negative on your credit score. The Galpin Ford voluntary repossession department staff will explain this to you, however you should be aware of the consequences to your credit record before you make this decision. Talking to a credit counselor before making the decision is important, especially if you already have paid into the car for a large part of the loan period. Keep in mind that the car has dramatically depreciated in value in the first year, so even if you turn in the vehicle and they sell it or value it at a higher than average market value there will still likely be a deficit between the value of the car and the total amount of the loan plus the interest and fees. Even with a voluntary repossession you, as the borrower, will be responsible for paying that difference. If you had a friend or family member co-sign for the vehicle, he or she will also be negatively affected through their credit score and will be held legally responsible for the deficiency payments.
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