Repossession Question

[kklblue]

What is the name of your state (only U.S. law)? Minnesota

I lost my job of 10 years last May. Was laid off as a result of the office closing. I have been behind on my car payments since last October. In December I received a "Notice of Default/Intent to Repossess". I was told to make a payment by a certain date, which I did. I have made a payment every month since then also. My issue is, its getting more and more difficult to make the payment. I am still unemployed and unemployment doesn't cover all my expenses.

What are the steps that occur in a repossession. Is all they need to is come and pick it up or do they send another notice out?

Thanks

 

[single317dad]

What is the name of your state (only U.S. law)? Minnesota

I lost my job of 10 years last May. Was laid off as a result of the office closing. I have been behind on my car payments since last October. In December I received a "Notice of Default/Intent to Repossess". I was told to make a payment by a certain date, which I did. I have made a payment every month since then also. My issue is, its getting more and more difficult to make the payment. I am still unemployed and unemployment doesn't cover all my expenses.

What are the steps that occur in a repossession. Is all they need to is come and pick it up or do they send another notice out?

Thanks

Once you are in default (have not paid as the original agreement dictates), then the secured property can be repossessed at any time. Written agreement between the parties to either defer payments or an agreed temporary delayed payment schedule may restrict their ability to repossess while those agreements are in effect, but if you also default on those further agreements, then they can certainly come and take the vehicle without any further notice.

If the vehicle is repossessed, you will have a redemption period (varies by state), during which you can pay all past due payments as well as late fees, towing bills, etc. to bring the account current. Then you could have your car back and resume the original contract. Otherwise, your vehicle will be sold, likely at public auto auction for a fraction of its value, and you can (probably will) be sued for the remainder: shortfall on the loan, fees, more fees, and more fees, which will very likely add up to more than what you owed on the loan before you defaulted. You should do all you can to avoid that outcome.

https://www.revisor.mn.gov/statutes/?id=169A.63