What Happens If You Default On A Title Loan?
What happens if you default on a title loan? Have you ever wondered? Are you missing payments on your title loan account?
TFC Title Loans we want to educate you on all things title loans, especially missing payments, repossessions, and defaulting on your car title loan contract.
Defaulting On A Title Loan
With all title loans, you are required to make your monthly payments. If you miss some payments, and you do not communicate with the lender, this will probably lead to your vehicle being repossessed.
When you come with us, we will get you the lowest monthly payments, so make your payment will be within your budget, and so it will not be a strain on you.
If you have a title loan with another company, you should consider refinancing it with us, we will lower your monthly payment, so you will be able to afford it.
Missing Title Loan Payments
Missing title loan payments is never a good thing, and defaulting and repossession will vary from lender to lender.
A missed payment on your title loan contract will be considered a default, but most lenders are not interested in repossessing your car after one missed payment.
If you miss multiple payments, and you have no communication with the lender, then your car will be repossessed.
Car Title Loans Repossession
If you do not make monthly payments for about 3 months with zero communication, your car will be out for repossession, this could happen after the second month.
As your vehicle is the collateral for your title loan, if you do not make the payments, the lender is permitted to repossess your car.
You can always contact the lender to make payment arrangements before your car is repossessed, this is the best thing to do because, after repossession, there will be more fees for you to pay.
Lenders do not want to repossess your vehicle, in fact, it is the last thing that they want to do. Title loan companies only make money when you are making your monthly payments.
Once the car is repossessed, the interest stops, so they really do not want to pick up your car. So it is always best to talk with your title loan company and make some of the missing payments.
Repossessed Car
Once the car has been repossessed, you have a couple of options. You can make all of the delinquent payments, with the late fees, and the repossession fee.
If you decide not to make the payments, the lender will sell the vehicle at the auction. As long as the car sells for the title loan balance, you will not owe any money, but if there is a deficiency, you will have to pay the difference, even though you no longer have the car.
If the vehicle sells for more money, then the lender will send you the remaining money after the sale of your vehicle.
Refinance Your Title Loan To Avoid Default
If you are with another lender and you are having difficulties with your monthly payments, or if you want to get a lower monthly payment, we will get you a title loan refinance, so you can enjoy lower monthly payments.
When we refinance your title loan with one of our partners, we will make sure that repossession will be the last resort.
By getting you a better title loan from the beginning, the chances of you defaulting are much lower.
When we refinance your title loan, not only will we get you a lower interest rate, with lower monthly payments, we can also get you more money, as long as you still have enough equity in your vehicle.
You can look to see if you have enough equity in your car, by using the NADA, so you will be able to find out the wholesale value of your vehicle, we can get you up to 85 % of the wholesale value
Get A Better Title Loan
When you apply with us, you will be getting a better title loan, our application process is really simple, and you will only need to provide a few items to get approved.
- Apply with our application, or you can call us over the phone and we can take your application.
- you will need to submit the required documents. You will need to have a vehicle with enough equity in it, proof of your monthly income, your proof of residence, and your car title will need to be in your name.
Requirements may vary from lender to lender, but if you have the basic requirements, you will get qualified, and with a nationwide network of title loan companies that we work with, we will get you a title loan that is in your neighborhood.
Getting a better title loan when you need it, is how we can help you. with lower monthly payments, and a lower interest rate, you will get the better title loan that you need.
Applying for your online title loan approved today is the easiest way to get the better title loan that you need, or refinance the current title loan that you have.