I live in TX and my truck is financed in FL bank isn't licensed in TX can they still repo my truck?

At Auto Credit Express, we get a lot of questions from customers asking if a repossession will affect their ability to buy another car. But first, you have to understand what a repossession is. Even though your car is sitting in the driveway, if you are making payments on it, it’s the bank that really owns it.

If you look at the vehicle title, you will notice a “lien holder” section where the name and address of the bank are listed. Until you make your final payment and receive a “release of lien” letter from the bank, the car really doesn’t belong to you. What if I can’t make my payments on time?

It’s important to keep the bank informed if you are having financial problems. By calling them and explaining the problem, you might be able to set up special payment arrangements. Depending on the way your finance contract is worded, the bank may have the right to repossess your car if they receive the payment one day late, so you will want to explain your situation.

The bank also has the right to take the car without a court order, so if you do fall behind, don’t expect a letter in the mail beforehand. What is the difference between voluntary and involuntary repossession? In an involuntary repossession, the bank sends someone to seize your car.

In an voluntary repossession, you take the car back, yourself. If you take it back yourself, you may avoid certain fees the bank will charge you if it has to come and get your car. The effect is the same and a voluntary repossession does not look any better on your credit report than an involuntary one.

What rights do I have if it is repossessed? Depending on the state in which you live, the bank must notify you within a certain number of days when it will be sold. During this time, it may also be possible to buy back the vehicle for the balance owed plus any expenses incurred by the bank.

You also may be able to reinstate the loan by paying the amount you are behind plus expenses. If the bank sells the vehicle for more than the amount owed, plus expenses, you are entitled to the difference. If the vehicle sells at auction for less than the contract balance, the bank has a right to go to court and seek a judgment against you for the balance of the loan.

If you’re having problems paying your loan, call the bank and explain your situation. Remember that a repossession is a black mark on your credit history and can prevent you from getting a car loan – any type of car loan – for at least a year. If your credit history does include a repossession, go to our web site at www.autocreditexpress.com.

We have helped thousands of people in your situation reestablish their credit. You can also find out if you qualify for a car loan and even budget a car loan for your specific financial circumstances. And is filed under New Cars, Used Cars.

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.