How to Stop a Repossession in the Final Stages

Missing several car loan payments eventually results in a repossession, where a lender finds the vehicle and takes back the car. A repossession stays on your credit report for seven years and causes a drop in your credit score. Even if your lender is prepared to repossess your car now, you can stop the repossession, keep your car and get your loan back on track.

Instructions

1

Explain your situation to the lender. Communicate regularly with the lender to help slow down a repossession. Situations such as illness or being unemployed may persuade your lender to help you keep the car or defer the repossession.

2

Ask your lender to take partial payments. If you can't afford the entire monthly balance, talk to the lender to see if they will temporarily accept partial payments to stop an imminent repossession.

3

Discuss forbearance options. Some auto lenders defer repossessions and permit loan forbearance, allowing you to skip payments for a few months and giving you time to get the loan back on track.

4

Restructure the loan. Talk to your lender to see if they will restructure or modify the loan. There's a chance the lender will extend the loan terms and possibly lower the payments, or the lender can voluntarily reduce your monthly payment to an affordable amount.

5

Pay the past due amount. If you're able to financially recover before a lender takes action, contact your lender to discuss paying the delinquent balance and stopping the repossession. Be prepared to pay additional fees for missed payments.