Just like everything else in this current bubble, we start to see the decay of local business all around. Not only local but we read about the massive layoffs going on day in and day out. Retail stores have been dropping like flies and there is no light at the end of the tunnel.

As an aircraft repossession expert having been through several recessions before, large aircraft companies are not immune, I can attest. Same goes for major cruise lines and other companies that some of us feel naturally as they are protected since they are so big, not the case.

The repossession orders come and we get the assets. If we have to unload 500 people in the Bahamas to do so, as long as its within our rights as a repossession company doing its job, they will be unloaded. If we have to take down a fleet of 737 jets scattered through the world, we are scattering and picking them up simultaneously whether in Istanbul or Orlando.

Its happening now, I can just feel it. This is happening in India today.

Avolon moves to repossess two 737s from Jet Airways

Avolon has applied to have two Boeing 737-800s leased to Jet Airways deregistered, in what appears to be the first repossession action taken against the distressed carrier.

Records from India’s Directorate General of Civil Aviation show that requests to deregister the aircraft – MSNs 34797 and 34798 – were submitted on 3 April. Their respective aircraft owners – Crolly Aviation and Mardel Aviation – lodged the requests.

Cirium’s Fleets Analyzer shows that the two jets were built in 2006 and are managed by Avolon. Both have been operated since new by Jet Airways, and are under finance from DVB Bank.

Under the country’s aviation regulations, the DGCA has five working days to deregister the jets, provided all registered interests in the aircraft have been discharged, or those with interests have consented to its deregistration and export. Jet Airways has disclosed that 70 of its aircraft grounded due to non-payment of lease rentals to lessor. All of its disclosures on aircraft groundings have said that lessors are supportive of its restructuring efforts.

Its last disclosure on 2 April, advising of the grounding of 15 aircraft, came just over a week after Jet indicated it would receive a Rs15 billion ($217 million) lifeline from its lending consortium, part of which had been earmarked to clear some of its lease dues. However, it appears that credit facility has not been advanced to the carrier.

Last week when I said this would start to happen, we knew it would. I would expect a lot of this type of blame in the coming future. A rent control type scenario. Banks will not be able to make victims out of people not paying their bills.

What will happen is the people will be able to tie up a repossession matter in court so long that a repossession wont matter anyway. States like NY, NJ, CA, CO and others will begin the major protections as stated below with this case in NJ.

“NEWARK — Two South Jersey car dealers took advantage of used-car buyers with poor credit scores, using lending practices that allowed them reclaim and resell vehicles repeatedly, according to a lawsuit by the state Attorney General’s Office.

State Attorney General Gurbir S. Grewal and its Division of Consumer Affairs announced the lawsuit Thursday against two “Buy Here, Pay Here” auto dealerships —Nu 2 U Auto World of Clementon and Pine Valley Motors in Berlin — and their owner, Kenneth R. Cohen of Magnolia.

Grewal said the dealerships preyed on “financially vulnerable” customers, selling them over-priced cars with high miles, pressuring them into in-house loans with severe penalties.

 “Then (when the buyer defaulted), the dealerships reclaimed and resold the vehicles over and over again to different consumers in a practice known as churning,” he explained.

Gov. (Phil) Murphy promised New Jersey consumers increased protections against financial exploitation and we’re making good on that promise.”

The lawsuit asks the courts to ban Cohen from owning, managing or selling vehicles and to reimburse former customers who fell victim to the “churning” practice.

Anticipating a buyer would be unable to make the auto payments, the dealerships never provided them with the vehicle registration, the lawsuit said.

The dealer also required buyers to sign documents to re-key the vehicle, often at great expense, and to provide the dealer with a copy of the key or face repossession of the vehicles, according to the agreements the consumers signed.”

This bill that was introduced in Ireland this week, luckily has nothing to do with car repossessions. But it may sometime in the near future get to that point. Have you thought about what they will do with 9 million people 90 days late on their car payments? That’s a tremendous amount of late people and if bills like this continue, repossession agents will not be allowed to repo the cars just like Bankruptcy cases and active deployed military cases.

A new Bill that would make it mandatory for a court to consider a home owner’s personal circumstances in repossession cases is set to come before the Cabinet on Tuesday morning.

Minister for Justice Cwill seek Government approval to draft the Land and Conveyancing Law Reform (Amendment) Bill which will broaden the matters a court must take into account when deciding whether to grant a lender a possession order for a person’s home.

The plan was first mooted by Independent Alliance Minister Kas a Private Members’ Bill, the aim of which was to keep distressed borrowers who are in mortgage arrears in their homes where possible.

The proposed new law would mean that a court must take into account the circumstances of the borrower and their dependents, the details of any proposal put forward by or on behalf of the borrower, and the conduct of the parties in any attempt to find a resolution to the mortgage arrears difficulties.

It would also mean that the court may take account of a lender’s refusal or reluctance to engage in attempts to find a resolution to the arrears issue, and also to take account of a borrower’s refusal to engage in meaningful engagement with the lender.

Anyone who has done repossession work, including myself has encountered the naked woman. Whether it be the big fat naked woman chasing you out of her house with a machete or kitchen knife. Or perhaps its the seduction expert offering her expertise in order to not take the asset. You get the picture, I mean it happens all the time.

In this particular case with a bad ending as she ran over the repo agent. People are indeed becoming more violent as predicted. As things get harder, violence will continue to rise to the point where it might be a good investment to wear a bullet proof vest or practice MMA in your spare time.

An Athens woman was arrested after allegedly running over another woman with her car and dragging her in the street after attempting to repossess her vehicle.

According to the police report, Shanita Smith, 24, came out of her apartment wearing a towel when the workers arrived to take her Nissan Versa at 12:37 a.m. Tuesday.

A worker with C&O Recovery, a repossession company, called 911 and said that Smith confronted them outside her apartment. He said Smith got in the vehicle and attempted to speed off but was stopped by the other employee, who attempted to jump in the car with her, according to the police department.

The repo employee told police that Smith put the car in reverse and the other employee, who was the repo worker’s girlfriend, got caught in the car’s doorframe and was dragged for a short period of time before falling out. The man said that Smith ran over the other woman’s legs and crashed into a white Toyota Sequoia nearby. The employee told police he tried to knock on Smith’s car window after she hit the SUV but she drove off.

The woman who was run over said she told Smith to stop the car. She said Smith briefly stopped before hitting the gas and speeding off. She said both of her legs and right arm were run over. Police ran the employee’s name and realized she had a warrant out for her arrest in Forsyth County for violating a protection order. Due to her injuries, she told police she would turn herself in after going to the hospital.

An officer spotted Smith walking down the street in her towel and brought her back to her apartment to put some clothes on. According to police, Smith said had just gotten out of the shower when she heard her car starting up. She saw a tow truck behind her car and went outside to stop the repo workers.

Smith told police the female employee told her to “hold up b—-” when she tried to get into her car. She said she put the Nissan Versa in reverse and attempted to drive away when the woman opened the door, jumped in the car with her and started fighting for control of the vehicle. Smith claimed the woman elbowed her in the ribs and that she was scared, so she backed out and left.

It’s important to understand that in some of these states a repossession license is not required. his was just a tow truck performing repossessions in Jackson MS where a vehicle owner started shooting at the tow truck taking his car. He ended up hitting the passenger in the neck.

According to police, a man was shot during a vehicle repossession in the 200 block of Marla Avenue. He has been taken to the hospital with non life-threatening injuries.

Officers learned that the owner of the vehicle had fired shots at the tow truck, following the repossession of his vehicle.

45-year-old Brian Miller was taken into custody by Jackson police.

The passenger in the tow truck was injured neck area and transported by the driver to an area hospital.

The victim’s injuries are non life-threatening and may have been caused by glass debris resulting from the gunfire.

After recently writing about how this is soon to be the motherload of repossessions and why in my last article. Sure enough, main stream is now posting data on “A record number of people behind on car payments” which means repossessions will soon flood the United States.

Here is an article with actual data points regarding this major default.

While this is likely the beginning of a massive decline in the US economy, some of us who are doing repossessions will continually be able to earn provided the banks and finance companies don’t go down with them.

If there has ever been a time where repossessions will skyrocket, that time is now. Several things have occurred to cause the phenomenon. In fact some of the changes I didn’t learn until recently that were shocking as someone who knows the car business as well as how loans work. A decade ago, I would tell you that repossessions are best when economies are good which seems counter intuitive but it is the reality. Good economies equal lots of loans and also lots of defaults. However today is much different and i’ll try to explain why. 

The first thing that changed a couple of years ago gradually is that banks stopped financing people to buy cars at strictly used car dealers. Not all banks but most of the big ones and most of the credit unions as well. They only finance used cars at new car franchise dealers which means that the people are paying top dollar for used cars, or even getting upsold into new cars. People go in with expectations of leaving with a 300.00 monthly payment and get put into a new Camry at 500.00 to 600.00 plus full coverage insurance. 

Brand new instead of used

If you think those people going in expecting a 200 to 300 loan payment can afford a 600 dollar plus full coverage insurance payment you are very wrong. Right now apartment rentals are at an all time high which is squeezing them already. While yes many of these folks live collectively in these apartments sometimes sharing the rent with 2 or 3 other people is common, but the kicker is that jobs today while on paper look decent, most people know and see they are far from that. They are looking for the cheapest labor possible, many part time. Before you know, it catches up to them and these cars will go into repossession. 

Insurance rates

I am expecting an over abundance of default rates like never before. Remember populations in most bigger cities of the united states have recently quadrupled which brings my next reason for mass repossessions coming our way. Am I the only one who noticed that a decade ago it was around 1,500.00 for full coverage on a sports car and today those rates have at least doubled. This will choke out many of these new car owners, perhaps not right away but in time it will catch up and millions of them will be defaulting almost simultaneously. 

The squeeze

The next problem we are facing is the middle class squeeze from all angles. This squeeze is real and has been chipping away at them for the last 10 years solid. Many of the old school middle class I know personally drive around in paid cars, even if they are a little older. But you have those that need to be nicer cars to show off or just feel the need to upgrade thinking like the middle class will continue to maintain its forefront. Those days are long gone, smart money is conserving and they know it. Now is not the time to get a high car payment along with all the high bills and lower income to cover. Americans are fleeing cities in search of better more stable cities and they simply do not exist anymore. Apparently this last year New Jersey had the highest mass exodus out of any of the larger cities, but I don’t fully believe that. I think Florida had to beat it but that is my own opinion. 

In closing, I think its inevitable that mass repossession and credit collapse is coming. However at this time the giving of credit might be slowing down some, but it really doesn’t matter. The franchise dealers have made a literal fortune on the population increases and may continue giving credit all the way up to the day it can no longer. This will be a field day for agents.