Repossession laws of California

Answer 1

California statutes are organized into broad titles (i.e. Penal Code, Civil Code, etc.). Finding the applicable law on repossession depends on the type of property involved. For example, laws regarding car repossession are set forth in California's Rees-Levering Automobile Sales and Finance Act, Civil Code section 2981, et seq.

Answer 2

When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

Answer 3

Under California law, a creditor can repossess the vehicle if it is in default without notice, even if the car payment is one day late. However, if there is a co-borrower on the loan, the creditor is required to give notice before repossession.

Answer 4

Answered by Reid Breitman. Answer is for information only and is not legal advice. Please consult your attorney before relying on any information on the internet. First, a great site to visit is Action Auto Recovery; they really know their stuff. See http://www.repobiz.com/facts.html. The repossession law is pretty broad. In a nutshell, if you have granted a security interest in your vehicle to secure performance of a contract, such as a loan, if you fail to perform the contract, the lender can repossess the vehicle. I do not believe they even need to notify you in advance. So if you are a day late, they can repo. Most lenders will call and try to work things out, because repossessing is expensive...can cost $300 to $500 or more to the lender, and they pass that along to the borrower/debtor. The repossessor must be a licensed and bonded repossession agency, except in limited circumstances (i.e., if the lender itself (i.e., its own employee) actually does the repo personally). The repossessor is subject to all kinds of regulations about how the repo can be done, notification procedures, etc. Briefly, the reposessor will find the vehicle, and attempt to repossess it. It cannot be taken from inside a locked, private facility (such as a locked garage). Once the repossessor gains possession of the vehicle, the owner cannot come running out of the house and force the repossessor out of the vehicle. It's gone the moment the repossessor gets into the vehicle (although some local police have a policy that the vehicle actually has to move, even an inch, before the repossessor has perfected possession). Once the repo agency is in possession, they will call the local police and report the repossession (so that when the owner calls to report the vehicle stolen, the police can tell them it was repossessed), and get a confirmation number. The lender must then send a letter to the borrower, called a 15 day notice of intent to dispose of collateral, at the borrower's last known address. The notice tells the borrower if he/she has the right to reinstate (i.e., make up the past due payments, pay the repo fee, and get the car back) or redeem (i.e., pay off the loan in full, plus the repo fee, and get the car back). All borrowers have a right to redeem, but they may be denied the right to reinstate if the same vehicle was repossessed by that lender within the prior 12 months, if the borrower threatens violence to the lender or its agents, the borrower uses the vehicle in connection with a crime, the borrower damages or conceals the vehicle, or the borrower lied on the loan application. The notice of intent has to have a lot of specific language, and inform the debtor about what the loan balance is, what is past due, what will become due in that 15 day notice period, etc. After 15 days, the vehicle can be sold. It must be sold in a commercially reasonable manner, such as an auction. If the amount realized at sale is less than the amount owed by the borrower to the lender, then in most cases the lender can sue for a deficiency judgment, meaning that the lender can get a judgment against the borrower for the difference between the loan balance and the net proceeds of the sale of the collateral. If the vehicle sells for more than the amount owed, then the lender must give an accounting to the borrower within 45 days, and refund the excess proceeds. I hope this is helpful.

Answer 5

can you get your auto reposessed if your 2 payments behind NO

Answer 6

bought a motor cycle in the state of california, now live in washington. I was 20 at the time. Cannot make the payment what happens?

Answer 7

If the buyer has not paid they technically have not bought the item up for repossession. Go get that SH*T