With over $1 trillion dollars of outstanding debt for car loans in the United States everyone is talking about the next big bubble, and no doubt it’s connected to subprime automobile loans. While the damage won’t equal the impact the subprime mortgage crisis had on the economy in 2009, in a way this one is even more frightening. At least if you fell behind on your mortgage payments there was a judicial process that the banks had to file before taking back your home. There had to be a lawsuit filed with the chance to defend yourself in court and fight back against what were often fraudulent claims by the bank. In fact, Loan Lawyers was at ground zero during the mortgage crisis and was able to save over 1,500 homes in South Florida from foreclosure due to uncovering many illegal and improper practices by the banks and loan servicers. The biggest problem with the automobile subprime crisis is that there is no judicial process whatsoever, at least not in Florida. What does that mean? If you miss a car payment, the lien holder could send over a repo man in as little as 30 days to take away your car. No judge, no court, basically very little rights whatsoever. Considering that over 90% of people use their cars to get to and from work that could be catastrophic. So what do you do if you can no longer afford your car payment or your car has been repossessed?
First, even though there is no judicial system to follow for automobile repossessions, that doesn’t mean that you don’t have any options or rights. First of all bankruptcy may prevent the lienholder form taking the car in the first place, so if you are worried that you are falling behind on your car payments or have fallen behind on your car payments, contact Loan Lawyers right away and speak to one of our bankruptcy attorneys so we can advise you as to what your options are.
If your car has already been repossessed you still have options to either get it back or potentially sue the dealer for fraud. Under Florida law you have the right to redeem the vehicle by paying what you owe any time up to the sale. Furthermore, you have the right to bid on your car at the auction, provided that it’s a public auction. Frequently repossessed cars get sold at private sales, but you still must be informed of the time and place of the sale. Florida law also requires that the sale must be conducted in a Commercially Reasonable way, meaning plain and simple, no funny business. Yet the automobile industry is filled with shady dealings and funny business and often these sales are not legitimate. Further, considering that over 95% of auto loans are securitized and sold off in securitized trusts (just like mortgages are, which was the cause of the subprime mortgage meltdown) there is a good chance that the company that has repossessed your car may not even have the right to do so, as they may not even own the loan anymore. There are several other nuances in the law that also may work in your favor.
If you are no longer able to make your car payments or your car has been recently repossessed call the Auto Repossession Lawyers here in South Florida at Loan Lawyers today for a free consultation. Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, contact us to see how we may be able to help you. 1-888-Fight13 (334-4813).