What Happens During Title Loan Repossession?

Max CashⓇ is here to help explain what really takes place during the process, how to avoid title loan repossession altogether, and stay behind the wheel while getting the cash to keep you on track.

What Is Title Loan Repossession?

Title loan repossession takes place when, if for whatever reason, you are unable to keep making payments on your title loan, your title loan lender may decide to repossess the vehicle. Since your car is used as the collateral, you are borrowing money against the equity in your vehicle to secure the loan and if you default on making payments, you risk repossession if the loan isn’t brought current.

Typically, the repossession process starts with one or more missed payments after which, in some states, you may be sent a right to cure notice giving you a period of time to catch up on payments. But if you can’t do that, then the lender will, unfortunately, have no other option than to repossess the vehicle.

If repossession is deemed necessary, the lender will reclaim your vehicle and typically take it to a secure tow yard. It is up to you to contact the lender and arrange a repayment plan. If you fail to get in touch with your lender or try to retrieve your vehicle, it will then be auctioned off. So, you have to take title loan repossession seriously. If you are worried about missing a payment, be sure to act early enough to see that it doesn’t happen to you!

Legal Considerations of Title Loan Repossession

Title loan repossession laws can vary depending on your state, but typically title lenders may be required to provide a grace period or issue a right to cure notice before sending a tow truck to take away your car. In some states, however, the lender is not required to notify you before the repossession. This grace period (around 10 days) is meant for you to try to get your loan current and avoid having your car repossessed.

However, some title lenders may move forward with repossession even after just one missed payment, depending on the state–but especially if there’s no communication from the borrower. Keep in mind, repossession is usually the absolute last thing your title loan lender wants. In many cases, if you contact the lender or loan servicer before you default on the loan, they will make an effort to work with you before repossession happens, but it is crucial that you seek out help if you need it.

If you’re stressed about making payments on title loans you may have taken out and want to avoid losing your car through title loan repossession, Max Cash has knowledgeable agents that can answer your questions at (833) 207-9052, 24/7!^{2 5}

How Many Payments Can You Miss Before a Vehicle Repossession Occurs?

According to Bloomberg, vehicle repossessions have reached the highest level since 2009 with many people finding it hard to pay bills on time. But how many payments can you miss before a title loan repossession occurs? That really depends on your state’s laws and your loan agreement, but even missing a single payment could still result in a title lender repossessing your car.

Many title loan lenders will do everything they can to help you avoid the possibility of repossession, such as offering clear channels of communication to customers, loan term flexibility, and professional help from their team of experts, but title loan repossession stays on your credit report for 7 years and can sink your overall financial health.

Max Cash understands how stressful it can be when financial snags happen, which is why we work with a hand-selected network of title loans lenders offering flexible repayment terms so you have every opportunity to keep on track, and keep your wheels. Call us at (833) 207-9052 to discuss your options today!

What to Do If You Receive a Right to Cure Notice

If your lender sends you a right to cure notice, it’s basically giving you a deadline to catch up on all your past-due payments (or pay the full balance off) before title loan repossession takes place, something legally required by many states across the U.S. Take this notice very seriously and do everything you can to take action ASAP. Here’s the steps you should take next:

1. Discuss Your Options with the Lender

This isn’t the time to wait, reach out to your title lender and explain your situation. Most lenders are more than willing to work out a plan with you if you demonstrate the initiative to get back on top of making your payments.

2. Seek Out Legal Advice

If unsure of where to turn or what your rights are, contact a legal professional. You can find out the legal protections in your state and learn how to proceed when faced with this situation.

3. Can You Catch Up?

Decide if you can realistically pay the delinquent amount within the timeframe given in the cure notice. If not, see what other options you can take, like borrowing from friends or family.

4. Let Your Car Be Repossessed

It may sound like the worst-case scenario, but voluntarily surrendering your vehicle to the lender may reduce extra charges and penalties, but it will still negatively impact your credit which can take years to fix.

How to Avoid Title Loan Repossession

Title loan repossession is the last thing you want to happen, not only will you lose your car and ability to get around, but your credit and financial future will take a serious hit. Here are some of the best ways to try to keep current with your loan–and keep your car:

Borrow Smart

It’s simple: don’t borrow more than you really need. If you do, it might be that much harder to pay back the loan in full, and on time, which only leads to headaches and needless stress later.

Know the Loan Terms

Don’t be in the dark on things like the loan’s interest rate, payment schedule, and what could trigger a title loan repossession.

Communicate

The biggest mistake you can make is to not let your lender know when things get financially tough, like a job layoff or unexpected emergency. The best thing to do is just give them a call and see what your options are.

Refinance

If circumstances in your life have changed and your loan payments are too high, consider refinancing / extending the loan to allow more time to pay it back, or even get a better rate. If you’re stuck with loan payments that are dragging you down, Max Cash can do all the homework for you in getting the absolute best rate, and if there’s enough value in your car, you may be able to get even more money!

Avoid Title Loan Repossession With the Help of Max Cash!

If the thought of title loan repossession has you stressed out and worried, you’ve still got options, and you’ve got Max Cash. Sometimes life throws curveballs at you that you might not expect. However, the solution to your problems could be closer than you think! Consider obtaining a quick, convenient title loan facilitated with the help of Max Cash!^{2 5}

We strive to help potential borrowers receive personalized help from compatible, trustworthy lenders and we’ve made it easier than ever for inquirers to get in touch with us. We’re available 24/7 to guide you towards the financial comeback you deserve!^{2 5}