Get Your Car Loan Modified & Not Reposessed
If you're struggling to pay your car loan on time and you're worried that your car might be repossessed, it might be time to contact your auto lender to negotiate a loan modification. Through a modification, your auto lender can lower your payments so that you won't lose your vehicle. But you'll first have to convince your lender that you really have suffered a financial hardship serious enough to keep you from making your payments.
Instructions
1. Gather the paperwork that proves that you have recently suffered a financial hardship that is making it difficult for you to afford your monthly car payments. Make copies of your most recent federal income tax return, two most recent paychecks, credit card statements and other loan statements.
2. Contact your auto lender at the phone number included on your most recent loan statement. Explain that you have lost your job, suffered a serious illness or injury or seen your annual income fall, and that this financial hardship has made it impossible for you to pay your auto loan payments. Ask for a modification of your auto loan that will result in lower monthly payments.
3. Send the copies that you made in Step 1 to your auto lender. Your lender will analyze these papers to make sure that your financial hardship is severe enough to transform your once affordable car payments into ones that are now a financial burden.
4. Agree to a loan modification if your auto lender approves your request. Your lender may lower the interest rate on your auto loan, change the terms of your loan so that you owe less money each month or reduce the principal balance of your loan. Any of these solutions should lower your monthly payment and keep your car out of repossession.
Tags: your auto, auto lender, your auto lender, financial hardship, auto loan