If you’re behind on your car payment to the point of constantly looking over your shoulder, anticipating the day your car will be repossessed, understanding the actual repossession process may help ease your mind – or at the very least help you know how best to turn things around before it’s too late!
2021 Michigan Repossession Laws
When it comes to vehicle repossession, every state is different. In Michigan, for instance, any type of motor vehicle, including cars, trucks, boats, ATVs, RVs, motorcycles, and even aircrafts can be repossessed immediately, without notification or court hearings of any kind, so long as “you fail to honor the loan agreement terms.” Most lenders in Michigan will even have specific clauses in their contracts detailing this information to ensure borrowers are aware of their risk before purchase. There are rules, however. Repossession agents are not to at any time enter into someone’s home uninvited, use violence, or deceive anyone in order to repossess a motor vehicle.
How To Get Your Vehicle Back Once It’s Been Repossessed
Once a vehicle has been repossessed, the owner of the vehicle has a limited amount of time to redeem it before the vehicle goes up for auction. Typically, the company responsible for repossessing a vehicle will send the owner a notice specifying how long it will be. In order to redeem a vehicle, you must satisfy all outstanding debts and restore good faith with your lender. In some cases though, a lender may require you to pay the remaining balance of the vehicle in full to redeem it – and unfortunately Michigan repossession laws prohibit the use of bankruptcy to avoid repossession.
How To Avoid Having Your Vehicle Repossessed
While technically your car can be repossessed at any time under Michigan law, it is your lender who will ultimately determine when to pull the plug. On average, most people don’t have their vehicles repossessed unless they’ve missed three or more consecutive payments, and that’s assuming there was no communication about the matter. If you want to avoid having your vehicle repossessed, the best thing you can do is stay in touch with your lender and keep them informed of your situation, work with them to come up with alternative payment strategies, and maintain a good relationship. If you’ve never had problems like this before, or there are extenuating circumstances, most of the time a lender will work with you to give you the extra time you need to catch up on your own.
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