Hard money loans, also known as private money loans, are home equity driven mortgage loans funded by private investors and companies using their own money secured by a real estate trust deed, eliminating the common qualification and underwriting guidelines of prime (regular) and sub-prime (bad credit) lenders.
"There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up," says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara, Calif. These investors, typically called "hard money lenders", make loans to people who are being turned down due to these and other reasons:
Borrower's FICO scores are below 500 due to recent bankruptcy or bad credit;
Income is unverifiable or borrower lost his/her job;
Balloon payment on existing loan is due now;
Foreclosure is imminent;
Borrower is purchasing odd or non-conforming types of properties (land, mixed use, etc).
"These are temporary fix loans. That's all they are--to help people get out of a bad situation," says Kirk Johnson, a mortgage broker with Sierra Funding Corp. in Denver.
How much equity do you have? If you don't have at least 30% equity, you probably won't be able to get a loan because hard money lenders want to make sure they can make money off your property if they have to foreclose.
Hard-money lenders are harder to find than other lenders, so how can someone get a hard money mortgage? Brokers and other intermediaries who arrange hard money loans "go to people who have money to lend and they match them up with people who can't get money any other way," Strickland says.
If you have low credit scores and need a cash-out refinance for debt consolidation, a home equity loan (second mortgage) to pay off debt, or you need a last resort foreclosure prevention solution, you may be able to get a bad credit mortgage refinance or second mortgage from a hard money lender. You'll probably pay double-digit interest rates, but a hard money mortgage may be able to provide the breathing room you need to rebuild your credit and refinance again later on.
Wednesday, May 9, 2012
Monday, May 7, 2012
How To - Fha Hamp Mortgage Loan Modification Program
Department of Housing and Urban Development Secretary Shaun Donovan published as of today the FHA has prepared amendments to its loan workout program so that it will further complement President Obama's Home Affordable Modification Program (HAMP) under Making Home Affordable. It is hoped that the new FHA mortgage modification rules will be in place by August 15th.
How does this aid you? Well, if you currently own a mortgage insured by the Federal Housing Administration (FHA), you will be able to radically decrease your monthly home mortgage payments, interest rate, and possibly achieve a partial principal forbearance or balance reduction (a decrease in the amount you owe on your home loan), provided you meet the new guidelines.
Homeowners that have successfully recieved a mortgage loan modification through Obama's Making Home Affordable Program have had staggering results, some homeowners lessening their mortgage rates to as low as 2% on 30 and 40 year fixed loans, saving a good deal of moneyeach month on their home loan.
The Burst of the Housing Bubble is a very stirring era for homeowners in FHA loans, as they now as well can get similar positive outcomes. Qualifying for the FHA -HAMP can be somewhat tricky, and there's a good deal of bad information out there on how to successfully modify your mortgage. We're going to put to rest the tittle-tattle, and help you figure out how to get qualified, ModificationZoom style.
Primarily we must cross the "eligibility" bridge - Your bank needs to be FHA-Approved to modify under FHA-HAMP. Most mortgage lenders that offer FHA mortgage loan programs are qualified. The best way to satisfy whether or not your servicer can modify your home mortgage under FHA-HAMP is to call and query if they take part in the program! If your "mortgagee" (lender) is eligible, your next step is to make sure that you are eligible!
Your current loan must be an existing FHA-backed single family mortgage, and the existing home loan must be in default, meaning that you are 1 payment past due more than 30 days, but less than 12 full home loan payments delinquent.
Your house must be a FHA insured single family home (1-4 units), loans previously amended under HAMP do not qualify, you must have had the loan for 12 months, and here's a great piece of information: There is no net present value (NPV) analysis for eligibility!
(The NPV check is employed to agree on whether it is cost effective for your lien holding bank to amend your home mortgage. Under this process, it doesn't matter if it is financially optimal for your mortgage lender to alter your loan or not! If you qualify, your servicer should amend your mortgage, regardless of the sum of equity you have in the home!)
There is no upper limit on home loan amount for home mortgages eligible for mortgage loan modification, and it have a bearing what your credit looks like! There is no valuation required, and your FHA - HAMP changed loan has to be at a decreased interest rate and payment than what you already have!
For documentation, you will need to present the following:
1) Hardship Letter
2) Income Documentation - Paystubs & W-2s, or Profit & Loss Statements & Full Tax Returns if you are Self-Employed.
3) 3 Months Bank Statements
4) Financial Worksheet of Income & Expenses
5) Hardship Affidavit
So what is going to happen when you recieve a mortgage loan modification through FHA - HAMP? First, you will be placed in a temporary loan modification payment plan, and after you make the first 3 payments under your new plan, FHA-HAMP can be completed.
Your mortgage will be altered to a 30 year fixed rate to a (proposed) front end DTI of 31%. You must verify that your back end (proposed) DTI is below 55%.
What specifically does this signify? Your "front end" DTI can be determined by dividing your home mortgage expense by your pre-tax income. Your "back end" DTI can be determined by adding the sum of all of the monthly payments that show up on your credit report by your gross income - e.g. - credit cards, automobile loans, and other mortgage loan payments.
Conversely, to work out what your new payment will be, simply multiply your gross income by 31 percent!
Ok, I know that was a good deal of information, so we're going to abridge with a "To-Do List":
1) Confirm that you hold an FHA loan, and that your Mortgagee (mortgage lender) is FHA - Approved.
2) Your home mortgage must be at least 1 payment late, but not more than 12 payments late.
3) Make sure your home is 1-4 units, that it is your primary and only residence, that you've had the loan for 1 year, and you haven't previously modified under HAMP.
4) Write out the hardship affidavit, write a hardship letter, document your income, completed a financial worksheet, include bank statements and submit the package to your mortgage holder!
5) Get your loan modified!
The remnants of the information out there on FHA - HAMP is pertinent, but not necessarily stuff that has to be grasped to get a loan modifications through the government program. For example; your servicing bank will determine how to get to the goal 31% payment by giving you a 30 yr or 40 yr fixed term and the calculated fixed rate, and may have to lower your principal to help you qualify for the payment you need to be financially stable. For more information, contact ModificationZoom toll free at (866) 760-9099.
ModificationZoom is not a Government Agency, but we do understand the ins and outs and loopholes of FHA - HAMP, and can help you.
Alright, now you're ready to rock and roll with the FHA Home Affordable Modification Program (HAMP).
How does this aid you? Well, if you currently own a mortgage insured by the Federal Housing Administration (FHA), you will be able to radically decrease your monthly home mortgage payments, interest rate, and possibly achieve a partial principal forbearance or balance reduction (a decrease in the amount you owe on your home loan), provided you meet the new guidelines.
Homeowners that have successfully recieved a mortgage loan modification through Obama's Making Home Affordable Program have had staggering results, some homeowners lessening their mortgage rates to as low as 2% on 30 and 40 year fixed loans, saving a good deal of moneyeach month on their home loan.
The Burst of the Housing Bubble is a very stirring era for homeowners in FHA loans, as they now as well can get similar positive outcomes. Qualifying for the FHA -HAMP can be somewhat tricky, and there's a good deal of bad information out there on how to successfully modify your mortgage. We're going to put to rest the tittle-tattle, and help you figure out how to get qualified, ModificationZoom style.
Primarily we must cross the "eligibility" bridge - Your bank needs to be FHA-Approved to modify under FHA-HAMP. Most mortgage lenders that offer FHA mortgage loan programs are qualified. The best way to satisfy whether or not your servicer can modify your home mortgage under FHA-HAMP is to call and query if they take part in the program! If your "mortgagee" (lender) is eligible, your next step is to make sure that you are eligible!
Your current loan must be an existing FHA-backed single family mortgage, and the existing home loan must be in default, meaning that you are 1 payment past due more than 30 days, but less than 12 full home loan payments delinquent.
Your house must be a FHA insured single family home (1-4 units), loans previously amended under HAMP do not qualify, you must have had the loan for 12 months, and here's a great piece of information: There is no net present value (NPV) analysis for eligibility!
(The NPV check is employed to agree on whether it is cost effective for your lien holding bank to amend your home mortgage. Under this process, it doesn't matter if it is financially optimal for your mortgage lender to alter your loan or not! If you qualify, your servicer should amend your mortgage, regardless of the sum of equity you have in the home!)
There is no upper limit on home loan amount for home mortgages eligible for mortgage loan modification, and it have a bearing what your credit looks like! There is no valuation required, and your FHA - HAMP changed loan has to be at a decreased interest rate and payment than what you already have!
For documentation, you will need to present the following:
1) Hardship Letter
2) Income Documentation - Paystubs & W-2s, or Profit & Loss Statements & Full Tax Returns if you are Self-Employed.
3) 3 Months Bank Statements
4) Financial Worksheet of Income & Expenses
5) Hardship Affidavit
So what is going to happen when you recieve a mortgage loan modification through FHA - HAMP? First, you will be placed in a temporary loan modification payment plan, and after you make the first 3 payments under your new plan, FHA-HAMP can be completed.
Your mortgage will be altered to a 30 year fixed rate to a (proposed) front end DTI of 31%. You must verify that your back end (proposed) DTI is below 55%.
What specifically does this signify? Your "front end" DTI can be determined by dividing your home mortgage expense by your pre-tax income. Your "back end" DTI can be determined by adding the sum of all of the monthly payments that show up on your credit report by your gross income - e.g. - credit cards, automobile loans, and other mortgage loan payments.
Conversely, to work out what your new payment will be, simply multiply your gross income by 31 percent!
Ok, I know that was a good deal of information, so we're going to abridge with a "To-Do List":
1) Confirm that you hold an FHA loan, and that your Mortgagee (mortgage lender) is FHA - Approved.
2) Your home mortgage must be at least 1 payment late, but not more than 12 payments late.
3) Make sure your home is 1-4 units, that it is your primary and only residence, that you've had the loan for 1 year, and you haven't previously modified under HAMP.
4) Write out the hardship affidavit, write a hardship letter, document your income, completed a financial worksheet, include bank statements and submit the package to your mortgage holder!
5) Get your loan modified!
The remnants of the information out there on FHA - HAMP is pertinent, but not necessarily stuff that has to be grasped to get a loan modifications through the government program. For example; your servicing bank will determine how to get to the goal 31% payment by giving you a 30 yr or 40 yr fixed term and the calculated fixed rate, and may have to lower your principal to help you qualify for the payment you need to be financially stable. For more information, contact ModificationZoom toll free at (866) 760-9099.
ModificationZoom is not a Government Agency, but we do understand the ins and outs and loopholes of FHA - HAMP, and can help you.
Alright, now you're ready to rock and roll with the FHA Home Affordable Modification Program (HAMP).
Duties of a Foreclosure Paralegal for the Real Estate Education
Should you need to know the work profile of a foreclosure paralegal and what do they exactly do? These persons are practically nothing but legal assistants to people lawyers who deal with cases related to foreclosure. Even though several persons have this extremely wrong concept about foreclosure paralegal, they consider their job is some thing really basic and related on the paperwork at the desk, but in reality there's more to it. In fact, it won't be wrong to say that the work of the foreclosure paralegal would have many impact over a case dealings from the lawyers end. This can be the reason why most law companies are really specific in picking foreclosure paralegals, mainly because they need complete efficiency during the candidates end and certainly the standards have to be well met.
The standards set by every with the law corporation may possibly not exactly be the same. This approaches that you need to ensure that you simply live as much as the expectations on the law company which you want to work at. A perfect resume does help, but how you present yourself in terms of the skills you know, which is what will probably be considered. So, if you are mentally prepared to get into the show of the foreclosure paralegal, then you ought to contact the most law organization for openings.
The openings these days are many, whilst the recession period did discover being a huge blow over a market. Today, once items over an economic front glimpse a bit settled, the work openings have increased in number. So you ought to put your best foot forward and make your way up to the article on the foreclosure paralegal.
The needs for this write-up aren't any different from what's usually expected. The candidate requirements to preserve a paralegal degree which must be pursued from a reputed institution. Actually you get bonus elements to become a pass out from a reputed institution. Apart from that, should you were part of the training program, which could be an additional point that would help, you stand a far better chance.
Previous jobs experience does discover as important, but to your fresher as well, should you are able to offer yourself inside a confident manner, then it is possible to get the job. It's all about how good you will be at facing the interview round, to your bit of nervousness may possibly cost you losing out on the work interview.
The greatest place to discover for job openings related to foreclosure paralegal or just about any job, you are able to appear up for them on the internet. Gone are those people days after individuals need to ruffle from the pages of a newspaper and circle the employment openings from the classified section. Today, it is possible to get needed facts inside a matter of few seconds on-line and you can be certain of owning the most interview calls during the most reputed law firms.
The interviews rounds require preparation, so you should are fully prepared. For getting an advice in accordance with what it is like, ask an individual who has gone through it already.
The standards set by every with the law corporation may possibly not exactly be the same. This approaches that you need to ensure that you simply live as much as the expectations on the law company which you want to work at. A perfect resume does help, but how you present yourself in terms of the skills you know, which is what will probably be considered. So, if you are mentally prepared to get into the show of the foreclosure paralegal, then you ought to contact the most law organization for openings.
The openings these days are many, whilst the recession period did discover being a huge blow over a market. Today, once items over an economic front glimpse a bit settled, the work openings have increased in number. So you ought to put your best foot forward and make your way up to the article on the foreclosure paralegal.
The needs for this write-up aren't any different from what's usually expected. The candidate requirements to preserve a paralegal degree which must be pursued from a reputed institution. Actually you get bonus elements to become a pass out from a reputed institution. Apart from that, should you were part of the training program, which could be an additional point that would help, you stand a far better chance.
Previous jobs experience does discover as important, but to your fresher as well, should you are able to offer yourself inside a confident manner, then it is possible to get the job. It's all about how good you will be at facing the interview round, to your bit of nervousness may possibly cost you losing out on the work interview.
The greatest place to discover for job openings related to foreclosure paralegal or just about any job, you are able to appear up for them on the internet. Gone are those people days after individuals need to ruffle from the pages of a newspaper and circle the employment openings from the classified section. Today, it is possible to get needed facts inside a matter of few seconds on-line and you can be certain of owning the most interview calls during the most reputed law firms.
The interviews rounds require preparation, so you should are fully prepared. For getting an advice in accordance with what it is like, ask an individual who has gone through it already.
Saturday, May 5, 2012
Shopping Is A Way To Relax
Is it any surprise that shopping can be considered therapy? In fact, many individuals swear by what has been dubbed "retail therapy." Of course, as with anything, excess can lead to trouble. As long as a person shops in moderation and with the right attitude, this activity can be a helpful way to regain emotional balance. It doesn't even have to be particularly expensive. There are various rituals that often accompany hitting the stores including having a cup of coffee and people watching.
Therapeutic techniques such as shopping can lower blood pressure, lift a depressed individual out of the doldrums, and recharge energy levels. When a shopper enters markets, clothing boutiques, or antique stores, they can get out of their own head and into the world. For example, going to a farmers' market is a great opportunity to view the earth's abundance in the form of fresh vegetables, fruits, and flowers. This can provide sensory delights and touchable evidence that seeds planted and tended will grow. Not only is this lovely to see, smell, and, if you purchase, taste, it's also a great metaphor for how to live life. In clothing boutiques, it's soothing to see and touch fabrics as well as to try on clothes. Seeing oneself in the mirror with attractive blouses, pants, or hats on can lift the spirit. Perusing antique stores is similar to going to a museum. Viewing the wares gets a person in touch with history and all the people, places, and things that were here on the planet long before us.
Having an espresso, latte, or chai tea alone or with a friend can provide a relaxing break during a day of shopping. The taste of the warm and comforting liquid and the feeling of the ceramic or Starbucks cardboard cup add another layer of enjoyment to an excursion. If a shopper is sharing the experience with a friend, it's a great way to connect, catch up, and chitchat about the state of the world. Having strong social ties contributes to a healthy life. If an individual is shopping alone, sipping one's brew is a great time to people watch. Observing our fellow humans' behaviors and interactions can be more entertaining than watching a movie.
Even individuals who are on a budget can have a good time in the stores if they plan carefully. Step one is to decide how much can be spent before setting foot in the stores. It's helpful to only carry cash and to leave the credit cards at home. Once the cash is gone, it's time to stop buying. It's fun to shop even without spending money. Window shopping is a term that refers to viewing the merchandise in the store displays as an activity. Individuals who set up these displays are often talented artisans. Viewing these artful arrangements is similar to going to an art gallery showing. Even if a person isn't planning to buy items that day, checking out window displays can be an entertaining experience.
Therapeutic techniques such as shopping can lower blood pressure, lift a depressed individual out of the doldrums, and recharge energy levels. When a shopper enters markets, clothing boutiques, or antique stores, they can get out of their own head and into the world. For example, going to a farmers' market is a great opportunity to view the earth's abundance in the form of fresh vegetables, fruits, and flowers. This can provide sensory delights and touchable evidence that seeds planted and tended will grow. Not only is this lovely to see, smell, and, if you purchase, taste, it's also a great metaphor for how to live life. In clothing boutiques, it's soothing to see and touch fabrics as well as to try on clothes. Seeing oneself in the mirror with attractive blouses, pants, or hats on can lift the spirit. Perusing antique stores is similar to going to a museum. Viewing the wares gets a person in touch with history and all the people, places, and things that were here on the planet long before us.
Having an espresso, latte, or chai tea alone or with a friend can provide a relaxing break during a day of shopping. The taste of the warm and comforting liquid and the feeling of the ceramic or Starbucks cardboard cup add another layer of enjoyment to an excursion. If a shopper is sharing the experience with a friend, it's a great way to connect, catch up, and chitchat about the state of the world. Having strong social ties contributes to a healthy life. If an individual is shopping alone, sipping one's brew is a great time to people watch. Observing our fellow humans' behaviors and interactions can be more entertaining than watching a movie.
Even individuals who are on a budget can have a good time in the stores if they plan carefully. Step one is to decide how much can be spent before setting foot in the stores. It's helpful to only carry cash and to leave the credit cards at home. Once the cash is gone, it's time to stop buying. It's fun to shop even without spending money. Window shopping is a term that refers to viewing the merchandise in the store displays as an activity. Individuals who set up these displays are often talented artisans. Viewing these artful arrangements is similar to going to an art gallery showing. Even if a person isn't planning to buy items that day, checking out window displays can be an entertaining experience.
Friday, May 4, 2012
Fast Auto Loans
Some times we apply for some external financial help to get our dream of driving own car fulfilled, but due to one or other reason everything does not go easily. And it takes months to get the required financing for car. Now you can take a breath of relief with the introduction of fast auto loans in auto market. The time taken to get money transferred to your account is minimal in this case. All other features of theses loans re same as that of any other auto loan.
What is there for you?
In very simple words you car is waiting there for you. Yes, you will get all the financing required to buy a car of your choice either new or used one through fast auto loans. And all these help will come at very minimal charge involved. These loans are normally of type secured. You have to pledge you car as collateral against the car. Once you choose your car other features of the loan will be decided.
You have an option to choose between short term and long term auto loans. With short term auto loans you will get a time period of 4 to 5 years to pay the money back and interest rate involved will be some how high here. But in case of long term ones this is not the case. You can pay the money back within 10 to 25 years and rate charged against you will also be less here.
Fast availability:
As already said fast availability of these loans is what makes them so much popular among customers. Because of this reason only lenders are coming online to be more accessible. You can go through all the quotes available in market within hours and select the one among them having lowest figures attached. It is really fast in this case.
What is there for you?
In very simple words you car is waiting there for you. Yes, you will get all the financing required to buy a car of your choice either new or used one through fast auto loans. And all these help will come at very minimal charge involved. These loans are normally of type secured. You have to pledge you car as collateral against the car. Once you choose your car other features of the loan will be decided.
You have an option to choose between short term and long term auto loans. With short term auto loans you will get a time period of 4 to 5 years to pay the money back and interest rate involved will be some how high here. But in case of long term ones this is not the case. You can pay the money back within 10 to 25 years and rate charged against you will also be less here.
Fast availability:
As already said fast availability of these loans is what makes them so much popular among customers. Because of this reason only lenders are coming online to be more accessible. You can go through all the quotes available in market within hours and select the one among them having lowest figures attached. It is really fast in this case.
Thursday, May 3, 2012
Is It Possible to Qualify for a Mortgage with No Pay Slips?
Planning to take out a loan? Before you proceed, you need to make sure you will be able to meet all the requirements of lenders. One of them is showing proof that you have a stable income by being employed. You'd have to present an employment record and submit certain documents like pay slips and tax returns.
This is how the normal process of loan applications goes. Those who cannot adhere to the requirements are usually denied their request. This is because lenders have probably found them unfit for a loan. The most common reason is the lack of evidence that they have the financial ability to repay the loan. And they base their decisions on whether or not the borrower is able to produce the necessary documents.
But what about those who have money but without documents like pay slips? Will they be denied loans? It shouldn't be since the whole point is to prove you have money for the repayments, right?
Ideally, there should be no problem as long as the source of income is established. However, being worried as they are, lenders want to make sure that they have enough proof to show strong financial status. Saying you have money and a job that pays well is not enough. Your requirements need to show that.
This is where things can go wrong for a lot of people. How do you think you'd be able to take out a mortgage with no payslips or any other document?
This can really be a challenge for a lot of interested homebuyers. But there is a solution to this. If the typical lender does not want to give you a loan, then look for another one.
Know that there are many other lenders out there who are willing to gamble on you. They're more lenient and would look for other things that would show you have the ability to pay off a loan.
It's all right if you do not have any pay slips. They'd understand that you might have a job that is not like other people. You could be a casual worker or get more money form bonuses. They will not be too strict about certain policies and would look for ways on how they can actually help you.
Based on the other proof you can provide, they will assess your financial situation and, hopefully, award you with the loan. It's not really hard to do it especially when you have a mortgage broker to help you.
It's really advisable that you seek the help of mortgage brokers because they know how to go around these types of problems. They now which lenders offer alternative solutions like unusual employment mortgage.
They will convince lenders that you are fit to receive a loan. They can even negotiate for the most competitive rates and allow you to borrow as much as 90% of the property value.
With their help, you can still take out a mortgage with no paylips or any other documents that typical lenders are going to ask from you.
It will definitely make buying a house a lot easier.
This is how the normal process of loan applications goes. Those who cannot adhere to the requirements are usually denied their request. This is because lenders have probably found them unfit for a loan. The most common reason is the lack of evidence that they have the financial ability to repay the loan. And they base their decisions on whether or not the borrower is able to produce the necessary documents.
But what about those who have money but without documents like pay slips? Will they be denied loans? It shouldn't be since the whole point is to prove you have money for the repayments, right?
Ideally, there should be no problem as long as the source of income is established. However, being worried as they are, lenders want to make sure that they have enough proof to show strong financial status. Saying you have money and a job that pays well is not enough. Your requirements need to show that.
This is where things can go wrong for a lot of people. How do you think you'd be able to take out a mortgage with no payslips or any other document?
This can really be a challenge for a lot of interested homebuyers. But there is a solution to this. If the typical lender does not want to give you a loan, then look for another one.
Know that there are many other lenders out there who are willing to gamble on you. They're more lenient and would look for other things that would show you have the ability to pay off a loan.
It's all right if you do not have any pay slips. They'd understand that you might have a job that is not like other people. You could be a casual worker or get more money form bonuses. They will not be too strict about certain policies and would look for ways on how they can actually help you.
Based on the other proof you can provide, they will assess your financial situation and, hopefully, award you with the loan. It's not really hard to do it especially when you have a mortgage broker to help you.
It's really advisable that you seek the help of mortgage brokers because they know how to go around these types of problems. They now which lenders offer alternative solutions like unusual employment mortgage.
They will convince lenders that you are fit to receive a loan. They can even negotiate for the most competitive rates and allow you to borrow as much as 90% of the property value.
With their help, you can still take out a mortgage with no paylips or any other documents that typical lenders are going to ask from you.
It will definitely make buying a house a lot easier.
Wednesday, May 2, 2012
Legal Recourse After Wrongful Repossession
The recent economic downturn has created financial difficulties for many consumers. As a result, the number of vehicle repossessions has increased in recent years. There is also evidence that a higher number of wrongful repossessions are taking place, which presents problems for consumers who may not fully understand their legal rights and consequently may fail to act when their vehicles are wrongfully repossessed. In most cases, lenders cannot repossess your vehicle unless certain conditions are met; these include:
your loan must be in default at the time of the repossession
if late payments have been repeatedly accepted, the lender must give you advance warning in writing of their intent to repossess the vehicle
Also, some actions taken by the repo company may also be illegal. For example, the repossession company can't threaten you or your family with physical harm or use force against you. Repo companies are also forbidden from breaking into your home or locked garage or using a master or duplicate key to gain entry to a locked area. These acts are considered a breach of the peace and usually lead to a wrongful repossession .
If my vehicle was wrongfully repossessed, what should I do?
If you believe the lender or repossession company acted improperly in repossessing your vehicle, it's essential to obtain competent legal advice about your options. An attorney specializing in consumer credit and repossession issues can advise you about your legal rights, including the right to sue the lender or repossession company for damages. You may be able to collect damages that can sometimes exceed the value of the repossessed vehicle and any deficiency balance you owe.
Document every interaction you have with the lender and the repo company. This information will be important in the event you do end up in court. And if an agent of the repossession company or the lender broke into your property illegally, make sure to report this to the police. Even though law enforcement officials will not usually interfere in repossessions, having the complaint on record can help your case in any legal proceedings you decide to pursue. If you or any of your family members have been assaulted or harassed by the repo company, report these actions to the police department as well.
your loan must be in default at the time of the repossession
if late payments have been repeatedly accepted, the lender must give you advance warning in writing of their intent to repossess the vehicle
Also, some actions taken by the repo company may also be illegal. For example, the repossession company can't threaten you or your family with physical harm or use force against you. Repo companies are also forbidden from breaking into your home or locked garage or using a master or duplicate key to gain entry to a locked area. These acts are considered a breach of the peace and usually lead to a wrongful repossession .
If my vehicle was wrongfully repossessed, what should I do?
If you believe the lender or repossession company acted improperly in repossessing your vehicle, it's essential to obtain competent legal advice about your options. An attorney specializing in consumer credit and repossession issues can advise you about your legal rights, including the right to sue the lender or repossession company for damages. You may be able to collect damages that can sometimes exceed the value of the repossessed vehicle and any deficiency balance you owe.
Document every interaction you have with the lender and the repo company. This information will be important in the event you do end up in court. And if an agent of the repossession company or the lender broke into your property illegally, make sure to report this to the police. Even though law enforcement officials will not usually interfere in repossessions, having the complaint on record can help your case in any legal proceedings you decide to pursue. If you or any of your family members have been assaulted or harassed by the repo company, report these actions to the police department as well.
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