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Banks May Not Want Your Car Back

As the economy continues to struggle, many lenders are being faced with taking back property they simply cannot get rid of. This is starting to show in the reported number of repossessions and foreclosures currently taking place. A recent atricle on CNBC reports that auto repossession companies are finding business has slowed down because banks and lenders are reluctant to take back cars and trucks people can no longer pay for. The report, titled "Can't Pay Car Loan? Bank May Not Even Want It Back!" has raised many questions from clients and future clients about the status of their car.

Not all banks are ignoring the fact you haven't made a car payment in a couple months. And, the repo man will eventually come to see you. Right now, banks who typically repossess a car after a loan is 60 days delinquent, are finding they wind up selling it for a loss at a used car auction.

In this economy, they might be better off working with delinquent auto loans as opposed to just taking the keys back. Think about it. It's either that or repossess a car that will sell in the used car market for thousands less than the cost of the original loan. if there is a chance at getting repayment, more lenders are opting to work it out.

Please keep in mind that under current law, once your car payment is considered delinquent which is usually 60 days, they can legally repossess it. If you take a chance on the fact that they won't due to the economy, you are at risk of losing that car. I wouldn't necessarily suggest to go throw away your payment book and assume you don't have to pay your car note anymore. In addition, once it is sold at auction, you can't get it back and if it sells for less than what is owed, the lender will file a lawsuit and get a judgment against you for the difference and possibly start garnishment proceedings.

To find out more about how to keep your property and possibly lower all of your monthly payments, you need to get a copy of my FREE Debt Relief Package which includes controversial new book 7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case. Don't talk with any creditor or bankruptcy attorney before you read this book. St. Louis, Missouri and Illinois Bankruptcy Attorney James Brown and Castle Law Office have offices in St. Louis, MO, Kansas City, MO and Memphis, TN that specialize in obtaining a discharge of debt in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy cases in Missouri, Tennessee, and Illinois. James R. Brown has helped more than 20,000 families file for bankruptcy relief and stop foreclosure, repossession and wage garnishment from creditors and debt collection agencies. You can call us toll free at 1-866-570-8484 to get your FREE Debt Relief Package.

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