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What are the Best Sources of Repossession Help?

Article Details
  • Written By: Jessica Ellis
  • Edited By: Bronwyn Harris
  • Last Modified Date: 13 June 2019
  • Copyright Protected:
    2003-2019
    Conjecture Corporation
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Having a home or valuable items repossessed can seem like a nightmare scenario, but unfortunately it becomes all too real for many people. Sudden emergencies, an unexpected loss of job, and other unforeseen situations can quickly put a person into a situation where he or she fears repo men coming to the door at any moment. There are many sources of repossession help that may be tapped if a person is in danger of having property repossessed. It is important to explore all options and try to find a solution before any property is seized.

One major source of repossession help can be a person's own assets. In many cases, it is possible to tap into home or property equity through refinancing, in order to liquidate some assets. This allows a person to transfer debt around, and can help ward off having critically necessary items, such as a car, repossessed. It is important to note that refinancing will not get rid of a larger debt problem, but simply transfer it to another important asset. If poor money habits have led to threats of repossession, it may be important to analyze and change spending habits to create a permanent solution to debt.

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Believe it or not, the lender in charge of the indebted objects can be a source of repossession help. In some regions, lenders are legally obligated to take reasonable measures to avoid repossession. Discuss options calmly with a lender to see if a more affordable, if higher interest, payment schedule can be worked out. Ask if he or she can defer repossession for a few months, and try to make a good faith payment of an affordable amount. Lenders often lose money on repossessed objects, since their value is diminished, so it is often in their best interest to work out a deal.

In some cases, repossession or foreclosure may be unlawful. It is important to understand rights and responsibilities in the jurisdiction to know if illegal threats are being made. Consider consulting a lawyer with expertise in these matters to help understand the legality of the situation. Make sure to bring a copy of the rental or lease agreement, as well as copies of any correspondence from the lender. Laws vary in regard to repossession by jurisdiction, so legal resources may be an incredibly useful source of repossession help.

In extreme situations, it may be possible to secure a loan to cover expenses associated with stopping a repossession. It is important to remember that short-term loans often have very high interest rates, and can turn a small debt problem into an enormous one very quickly. In a situation where a person is temporarily in financial trouble due to an emergency, this may be a good source of repossession help. Additionally, consider asking relatives or friends for assistance, as they may be willing to lend money in an emergency situation without charging interest.

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