Repossession is what happens when a creditor takes back property because there was a default of the terms of an agreement.
In most cases, it happens when the agreed upon payments were not made when they were scheduled to be made.
Repossessions are a significant and growing problem in this country. The Manheim 2016 Used Cars Report predicts continued growth in the number of repossessions in coming years even if the economic environment remains stable.
From the consumer’s perspective, a repossession can remain on their credit report for 7 years from the date of the delinquency and can severely limit, if not totally cripple, them financially.
They are what some in the credit repair industry call “tough nuts to crack” once they get placed on a person’s credit. With that being said, however, repossessions sometimes can and do get removed, from a person’s credit reports, well before the scheduled 7 years reporting deadline happens.
For example, one credit challenged consumer who desperately wanted to buy a home but couldn’t because he had a $48,000 repossession on his reports hired three different amateur credit repair companies to see if he could get the high dollar repo removed.
All three amateur credit repair companies tried and failed. One after another after another tried for one and a half years and failed.
But that wasn’t the end of the story because after all three companies had done all they knew how to do the man’s repo account was reviewed by a professional with legal training that discovered an impropriety in how the repossession was done and another impropriety in the reporting of the repossession. Then, and only then, was he able to get the $48,000 repossession removed from his reports well before the seven years was up.
Moral of his story: You don’t know what you don’t know until you know it. So it helps a lot, if you want to achieve your goal, to make sure you are hiring a real professional who knows what they are doing. P.S. Hire them sooner than later.