Can the repo man come on your property?

Can the repo man come on your property?

Can the repo man come on your property?

Can the repo man come on your property? – When people her repossession, the first thing that comes to their mind is the thought of losing their collateral which they put up to secure a loan. Sometimes, a collateral could be a car, a home, land or any form of personal property. Repossession, however, does not just stop at you losing your property. Repossession leaves a dent on your credit history and damages your credit score – it can cripple your finances and hamper your credibility for affordable financing in the near future. However, the impact of repossessions on your credit score only lasts for seven years after which it is wiped off.

In this article, we would answer two major questions: What is repossession? Can the repo man come into your private property to recover your car?

These questions are often disturbing to the novice in things that have to do with getting loans and paying back and the repercussions that come with being unable to pay back your loans. And in this article, we would try to answer them with more emphasis on the latter because it is a more pressing and relevant question.

What is Repossession?

In the most basic terms, repossession is the attempt to reclaim the ownership of a property which has been used to wager for a loan collected and which has not been paid off. In even simpler terms, if you take a loan from a bank, for example, and you use your car as a collateral to ensure that you would pay back within a specific time, if you fail to pay back within that time, your car would be repossessed to pay for that debt.

Repossession is mostly used in reference to cars, but in some cases, homes, jewelry, artwork and other such property can be held as collateral and therefore, can be repossessed. However, the term is mostly used for auto loans.

Can the Repo man come on your property and reclaim your car?

The simple answer to this question is yes. As soon as the credit account clocks out its time, the lender can immediately swing into action to repossess the property tied to that loan. If the case is that of a car loan, and you miss a payment, the bank could come into your property to reclaim the car without fear of any legal action as long as they don’t breach the peace. This implies that as long as the repo man does not use force or cause injury or harm to you or your property, it is within the rights of the lender to repossess that vehicle and they will. Usually, to do this, the lender would contract a third party company to reclaim the property – usually, it is a towing company which is specialized in repossessing vehicles. Also, lenders do not require court action or order before commencing the process of repossession. They can immediately swing into action the very moment you miss as much as a day on your payment for your loan.