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Vehicle immobilization is a key part of the act of impounding.. Vehicle impoundment is the legal process of placing a vehicle into an impoundment lot or tow yard, [1] which is a holding place for cars until they are placed back in the control of the owner, recycled for their metal, stripped of their parts at a wrecking yard or auctioned off for the benefit of the impounding agency.
Various objects can be repossessed, including boats and aircraft, but most repossession agencies focus on car repossession. The repo agent normally uses a tow truck or pickup truck with a special towing attachment called a boom. They also may obtain the key from the car owner. Usually, the vehicle owner must be notified of a repossession.
When the loan is repaid, the lien is removed and the car title is returned to its owner. If the borrower defaults on their payments then the lender is liable to repossess the vehicle and sell it to repay the borrowers’ outstanding debt. These loans are typically short-term and tend to carry higher interest rates than other sources of credit ...
If you owe $12,000 on the loan, for example, and the lender sells your repossessed car for $8,000, the $4,000 difference — as well as any associated fees and costs — are called the deficiency ...
However, as the Federal Trade Commission notes, once you default, lenders in many states can repossess your vehicle “at any time, without notice, and come onto your property to take it ...
A growing number of consumers are falling behind on their car payments, a trend financial analysts fear will continue, in a sign of economic strain.
If the party has the ability to do so directly, the action is referred to as repossession. For example, in the states of Wisconsin and Louisiana, if a person who finances an automobile, becomes a registered owner of that vehicle and fails to make payments as agreed, the lienholder cannot simply repossess the vehicle. The lienholder must go to ...
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