The System of a Van Repo
Recovery of CollateralOnce the vehicle has been located, it is the repossession agent's duty to secure it safely. Generally, an agent will applicability a Motor lorry equipped with a trundle lift or sling engineered specifically for repossessing vehicles. Some agents, but, Testament benefit a flat-bed tow truck or may have the keys to the vehicle and simply drive it away.
Location of Collateral
The Adjustment of Repossession Testament constitute as yet material as feasible to enable the repossession agency to allot the collateral, on the contrary sometimes additional steps Testament charge to be taken to treasure the vehicle provided it is lifetime eclipsed or whether the registered owner(s) bear moved. Either the lien holder or the repossession agency can manage away this inquiry transaction, called "skip tracing."
An Order of RepossessionWhen the lien owner of a vehicle--usually a finance partnership on the contrary sometimes an individual--makes the adjudication to repossess collateral for non-payment, an Plan of Repossession is issued. The codification gives an insured and bonded repossession agency the government to recover the collateral and includes a "clutch safe" clause that holds the repossession agency in noxious from duration sued for damages incurred in the method of the repossession.
Before leaving with the vehicle, a repossession agent often will make an effort to receive the keys. A common practice is to exchange the keys for the personal property inside the vehicle. The agent will take the keys, open the door(s) and allow the registered owner to take his belongings.
State laws vary, but repossession agencies generally are required to inventory and securely store personal property for 30 to 60 days. The agency, in most cases, also is authorized to charge a storage fee at its discretion for the property.
Redemption of Repossessed Vehicles
Depending on the circumstances of a repossession, the registered owner generally has 10 days to redeem following the seizure of the vehicle. This process is initiated with the lien holder; the repossession agency only is responsible for securing and storing the collateral unless it was immediately delivered to an auction yard.
Laws vary, but the vehicle may be returned if the loan has either been made current or paid in full. If the vehicle is not redeemed, it will be auctioned after approximately 60 days so that the lien holder may recover as much of the value as possible.
Moreover to condition, generally the more "stock" a vehicle is going into an auction, the better a price it will bring. Vehicles are usually sold "as is" and aftermarket items, such as stereos, rims and tires, do little to improve the price it will bring.