The repossession department of a bank like Citibank or Bank of America will typically put a repo order out right at around 90 days of delinquency. These departments are on their own away from other banking departments within the bank, usually located at the corporate location of the particular bank you hold the loan with. The repossession manager has allot of power in that area and has the ability within reason to delay that period or repossess sooner than that 90 day period. There will be factors looked at prior to that car going into “repo status” as they call it.
The bank or finance company will look at this prior to assigning repossession:
- How long have you had the loan
- How payments have been since you had the loan
- Is there a possibility of fraud attached to the loan
- Was the loan a straw purchase meaning was it bought for a friend or significant other
- Does the car have and maintain insurance
- Does the debtor answer the phone when called or does he/she duck the bank
- Job history of customer
- Previous tapes of phone calls, all calls are logged into the system and what was said is logged in with the date
- Amount of loan left
- Amount of payments
- Value of car verses loan
- Auction or wholesale value in the current market
- other possible risk factors
After review they may feel the car is not even worth the cost of repossession so they will strongly attempt to collect on the car by threatening repossession which on paper will happen but you will keep the car as we wrote in the article here. In which case they will keep the title of the car but you will maintain possession and cannot sell the car until it’s fully paid off. If you were an idiot on the phone verbally abusive or any of that, they will take note of that and probably not work in your favor. If you are however struggling due to a job loss they will typically work with you as long as you have been honest, but be warned banks do lie as well and also cannot be trusted. Many times a bank has stated they will work with a customer and that very same night put the car out for repossession. This happens often if they feel the car will be hidden.
The answer is typically at 90 days after a ton of collection phone calls or attempted collection phone calls. You can expect on the 90th day that the car will be gone so be prepared.