How to stop car repossession after bankruptcy - Way to avoid repossession

Aug. 1, 2012 - PRLog -- It’s not easy to find an online auto refinance provider that offers competitive rates. If you’re in the same situation as many people in today’s market and need to find a way to avoid repossession, this just might be the answer you need. There are some facts you need to keep in mind before you make a final decision.

Options for Avoiding Repossession

Are you trying to avoid losing your car? I was in the same situation not very long ago, and it’s not pleasant. You try to work with the lender in the hope of working something out, but it doesn’t always work. What other options do you have if you’re not in a position to pay all the past due payments? Take some time to research auto refinance interest rates, and you may discover there are other options open to you. Some things you might want to consider include:

•   Refinance your loan with the current lender
•   Seek another lender to pay off your current loan
•   Find a lender for car loan modification
•   Borrow the money to bring your loan current

If you have reduced income the last option will not be beneficial, but it might provide a quick solution while you look into other options.

Reduce Your Payments

When you have problems making the payments on your car you might want to look into car loan modification for bad credit as a solution. Unlike a simple refinance, the lender has more options with loan modification. Sometimes the lender may offer a lower interest rate or a longer term in order to accommodate the need of the borrower. However, you do need to keep in mind that not all lenders offer auto loan modification, so you will need to make some inquiries as soon as you discover you are going to have problems making your monthly payments.

Qualifications for Loan Modification

If you are looking to modify your car loan you want to keep in mind that not every lender has the same qualifications. Before you do anything else you need to find out how to qualify for auto loan modification. During your inquiries you need to remember each lender will have an individual set of guidelines, so you will need to become familiar with what each lender requires. In most cases borrowers will need to prove their financial need—I had to show a letter from my employer indicating my hours had been cut in order to qualify.

For more information about auto loan refinancing and loan modification visit http://www.credit-yogi.com/automobile-debt/car-repossessi...