How to Avoid Property Repossession
Reduce expenses., Make up late payments., Get a loan from a family member or friend., Have your loan reinstated.
Step-by-Step Guide
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Step 1: Reduce expenses.
If you find that you are unable to make your monthly car or mortgage payment, you should evaluate whether there is a way for to reduce your expenses.
This may mean getting rid of cable television or not buying your daily coffee.
The extra income you saved by reducing your income may help you afford to make your loan payments.
Some simple ways to reduce your expenses include:
Unplug all electrical devices that you are not using.
Lower the temperature on your hot water heater to between 125 – 130 degrees Fahrenheit.
Cancel your gym or other memberships.
Cancel newspaper or magazine subscriptions.
Cook and bring your own meals rather than buy lunch. -
Step 2: Make up late payments.
Even though you missed a payment doesn’t mean that your lender will automatically begin repossession proceedings or that you are in default.
Generally, your lender will notify you that your loan is in default and that they are going to begin repossession/foreclosure proceedings.
Many loans allow you to stop repossession by bringing your loan current, which means making your back payments and paying off any late fees.
If you think you will be unable to make a payment or have already missed one, you should contact your lender immediately.
They may be willing to waive your late fees or work out a payment plan so that you can payoff any missed payments., One way to pay-off missed payments is by asking for a loan from a family member or friend.
While it may be difficult for you to ask to borrow money, it is may be more difficult for you to lose your car or home, especially if your car is the way that you get to and from work.
If you are only experiencing a temporary hardship, you can explain that you only need the money to help you get through a difficult period.
You should also explain how and when you expect to pay them back.
If you are not sure when you are going to be able to pay them back, you should explain this too.
You should be aware that borrowing money from family or friends can negatively impact your relationship. , If your loan is already in default, which means that you have not made a payment within a certain period of time and your lender is taking legal action against you, you may still be able to get your loan reinstated.
This means that your lender allows you to bring your loan current by paying your back payments and fees.
Most lenders only allow you to “cure” a default on a one time only basis.
Some states legally provide the right to reinstate your defaulted loan.
Your state’s consumer protection agency should be able to tell you whether your state has laws regarding loan reinstatement.
You can find your consumer protection agency at: https://www.usa.gov/state-consumer.
You should also check the terms of your loan to see whether your agreement allows for reinstatement even if the right is not provided by your state. -
Step 3: Get a loan from a family member or friend.
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Step 4: Have your loan reinstated.
Detailed Guide
If you find that you are unable to make your monthly car or mortgage payment, you should evaluate whether there is a way for to reduce your expenses.
This may mean getting rid of cable television or not buying your daily coffee.
The extra income you saved by reducing your income may help you afford to make your loan payments.
Some simple ways to reduce your expenses include:
Unplug all electrical devices that you are not using.
Lower the temperature on your hot water heater to between 125 – 130 degrees Fahrenheit.
Cancel your gym or other memberships.
Cancel newspaper or magazine subscriptions.
Cook and bring your own meals rather than buy lunch.
Even though you missed a payment doesn’t mean that your lender will automatically begin repossession proceedings or that you are in default.
Generally, your lender will notify you that your loan is in default and that they are going to begin repossession/foreclosure proceedings.
Many loans allow you to stop repossession by bringing your loan current, which means making your back payments and paying off any late fees.
If you think you will be unable to make a payment or have already missed one, you should contact your lender immediately.
They may be willing to waive your late fees or work out a payment plan so that you can payoff any missed payments., One way to pay-off missed payments is by asking for a loan from a family member or friend.
While it may be difficult for you to ask to borrow money, it is may be more difficult for you to lose your car or home, especially if your car is the way that you get to and from work.
If you are only experiencing a temporary hardship, you can explain that you only need the money to help you get through a difficult period.
You should also explain how and when you expect to pay them back.
If you are not sure when you are going to be able to pay them back, you should explain this too.
You should be aware that borrowing money from family or friends can negatively impact your relationship. , If your loan is already in default, which means that you have not made a payment within a certain period of time and your lender is taking legal action against you, you may still be able to get your loan reinstated.
This means that your lender allows you to bring your loan current by paying your back payments and fees.
Most lenders only allow you to “cure” a default on a one time only basis.
Some states legally provide the right to reinstate your defaulted loan.
Your state’s consumer protection agency should be able to tell you whether your state has laws regarding loan reinstatement.
You can find your consumer protection agency at: https://www.usa.gov/state-consumer.
You should also check the terms of your loan to see whether your agreement allows for reinstatement even if the right is not provided by your state.
About the Author
Sophia Nguyen
Sophia Nguyen specializes in architecture and design and has been creating helpful content for over 2 years. Sophia is committed to helping readers learn new skills and improve their lives.
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