What is a repossession?

A repossession is a legal action taken by a creditor when a debtor fails to make payments on a loan. In California, a creditor can legally repossess property that is used to secure a loan, such as a car or a house, if the debtor has not made the promised payments. This process can be initiated when the debtor is more than 30 days past due on the loan payments. When a repossession occurs, the creditor can take possession of the property without the permission of the debtor. The creditor is allowed to take the property or enter the debtor’s property with the use of a repossession agent. During the repossession process, the creditor is not allowed to use any force or make any threats against the debtor. After the repossession is complete, the creditor will generally sell the property at a public or private sale. The proceeds from the sale will go to the creditor to pay off the loan. If the proceeds from the sale are not enough to cover the loan, the debtor may be responsible for the remaining balance. For the debtor, repossession can have serious consequences, such as damage to their credit score, difficulty in obtaining new credit, and increased difficulty in purchasing a new house or car. For this reason, it is important for debtors to be aware of their rights and responsibilities under California’s debtor and creditor laws.

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What is a repossession?

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