Last week my car got reposed. The loan company gave me 30 days time to pay up the dues. I was 3 months behind on my payments. This was as a result of my health problems. I may be able to start work within a month, but I am afraid that I may again fall behind, because 3 years is still left on the loan with quite a big payment of 300 dollars a month. What can I do? And how is this going to affect my score?
car got reposed
Hi Hamilton,
Can you tell me if your lender had any kind of agreement with you that they would repossess the car if dues are not paid? If this is not the case, then they can't take back your car. This can be considered as a "breach of peace". You can consult a lawyer regarding this. If they have violated the "breach of the peace", they may have to pay you penalties.
You can also contact your lender and try to negotiate new payment terms. However, this should be done only when you are sure that they have not violated the "breach of peace". You will be able to get a sample "loan modification letter" at http://www.creditmagic.org/letters/loan-modification.html . You can use this sample to write a "loan modification letter" according to your own circumstances.
Hope this helps.
Regards,
Aaron