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Consumer Myths About Voluntary Repossession
from: Deb St. George - HomelessInKingCounty.comUnfortunately for many thousands of consumers there are a huge number of myths around the concept of voluntary repossession. Since many fraudulent marketing agencies, con artists and general scam websites repeat these myths some consumers, particularly those already stressed with financial problems, fall into the traps these individuals offer as quick "get out of debt or financial trouble" programs. By taking the time to research through a reputable credit counseling service, through the Better Business Bureau or talking to an attorney or legal advisor about your options for either voluntary repossession or involuntary repossession, you will have a better understanding of your options.
The following are the most common myths about voluntary repossession, which is surrendering the item to the creditor without the need for the creditor to go through a repossession company or court process, depending on where you live.
Myth 1 – Voluntary repossession won't affect your credit rating.
While most of the scam sites or telemarketers don't come right out and make that statement, they carefully word their script to imply that a voluntary repossession is better for your credit score than in involuntary repossession. In reality they are both treated exactly the same by the three major credit reporting agencies. They both have a huge negative impact on your credit score and will remain on your record for seven years. Even a small voluntary repossession like a stereo or a computer system can have a very negative consequence.
Myth 2 - Once you turn in the vehicle or item, you are free from debt.
This is another very misleading assumption that less than reputable credit companies will attempt to use. In reality even in a voluntary repossession you will be responsible for the difference between what the item is valued at now and what the outstanding balance is. For example, a car that was purchased for $30,000 is repossession with $5,000 paid on the loan. The car is then sold at auction for $21,000, leaving an outstanding balance on the loan of $4,000 which the borrower is accountable for. Co-signers will also be included in both the negative credit ratings as well as the legal requirement to pay any outstanding balances.
Myth 3 – There are no fees involved in a voluntary repossession.
Just like any type of legal action a voluntary repossession has associated legal fees and charges. While you will avoid paying the cost of the full repossession fee, you will still have interest fees, legal fees and possibly even storage fees.
When talking to your lender be sure to understand what benefits you can expect from a voluntary repossession. If you seem to be getting misleading information, be sure to check with an attorney or credit counseling agency before making a decision.
Repossession News
Mortgage arrears Bill withdrawn from Dáil - Irish Times
 Irish Times | Mortgage arrears Bill withdrawn from Dáil Irish Times LEGISLATION GIVING judges powers to refuse home repossession orders has been withdrawn from the Dáil for talks about including some of its provisions in the Government's promised insolvency Bill. Independent Wicklow TD Stephen Donnelly introduced the ... Independent TD withdraws Bill to help prevent house repossessions Bill for hard-hit homeowners fails TD calls for judicial powers to halt repossessions |
FNB On Car Repossessions - AllAfrica.com
FNB On Car Repossessions AllAfrica.com Windhoek — In line with a recent article by First National Bank (FNB) Namibia about indebtedness at the beginning of the year, FNB Namibia would like to share information about home or car loans and repossession thereof when people default on their ... |
Repossession figures paint inaccurate picture - Stop-Repossessions.co.uk
Repossession figures paint inaccurate picture Stop-Repossessions.co.uk Repossession figures reported by Metro paint an inaccurate picture of the current situation in the UK, it has been claimed. Housing minister Grant Shapps noted the article - which suggested such instances reached their highest levels since 2009 in the ... |
PM to chair meeting to resolve land acquisition case - SGGP
 SGGP | PM to chair meeting to resolve land acquisition case SGGP Prime Minister Nguyen Tan Dung will chair a series of meetings to address public concerns about last month's violent protests against the repossession of public land leased to residents in Tien Lang District in Hai Phong City, from Feb. 6-10. |
Repossession still a major problem - ClearDebt
Repossession still a major problem ClearDebt by News Team on February 2nd, 2012 Large numbers of UK householders still face a very real threat of repossession, new figures have indicated. The February digest of statistics from Credit Action has shown the level of mortgage debt owed by each ... |
Man arrested in land protest wants lawyer - Tuoitrenews
Man arrested in land protest wants lawyer Tuoitrenews Doan Van Vuon, who was detained after protesting the repossession of the public land rent out to his family, has supposedly asked to be represented by a lawyer. Doan Van Vuon, who was detained after protesting the repossession of the public land rent ... |
Repossession of homes hits a two-year high - Metro
 Metro | Repossession of homes hits a two-year high Metro A total of 16600 properties were repossessed in the third quarter of 2011 – a rise of 20 per cent and the highest level since the beginning of 2009. Nearly half of the repossessions were carried out on behalf of mortgage lenders, while 5140 tenants ... |