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The process of lenders repossessing your property

On Behalf of | Oct 19, 2021 | Foreclosures

When you default on your loans, you may find yourself flooded with calls from creditors and lenders. Not being able to pay is one thing, but this added pressure stacks stress even higher.

When facing this situation, it may help to understand the process of repossession in Florida and your options to stall or proceed through it.

Repossession law

According to Florida statutes, lenders have a certain process they must follow to repossess their property. Once you default on the loan they may repossess the property but may not breach the peace doing so.

Lenders have the right to take possession of the titled property within 30 days after the end of a loan’s maturity date or extension. They must offer an opportunity to you to surrender the property at a reasonable place and time.

Once repossessed, the lender must inform you what they intend to do with it. For a car, this might mean putting it up for auction or keeping it as compensation. You sometimes have a say in what the lender does with the repossessed property.

Repossession options

Before or after the repossession of your property, there are various ways to react. You may offer to pay a lump sum to get the property back, reaffirm the loan with the company during bankruptcy or voluntarily surrender the property in order to save on unnecessary fees or expenses.

When working through the stress of financial troubles combined with lenders knocking on your door or calling your phone, you may need a breather. Automatic stays granted through bankruptcy may provide that room you need and there are other options like extensions you may want to research when dealing with the threat of repossession.

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