Where your car goes after repossession is usually a very simple process and the car is typically gone within 30 days if it is a smooth repossession. Smooth meaning no lawyer has contacted the bank for the debtor, no bankruptcy has been filed, no other scenarios that may slow down the process have occurred since the car has been repossessed. Either way it is surely a stressful situation for anyone and a repossession is one of the hardest things to remove from a credit report and will likely haunt you for the next 7 years.
How it typically goes down in a normal everyday non skip repossession is the bank places the order of repossession, the repossession company receives the order and assigns it to one of its agents to pick up usually the same evening upon receipt. The repossession agent goes out with a handful of orders with addresses, usually in a tow truck and picks up the car. The car then gets transported back to the tow or repo yard. The repossession agent is usually the person that inventories personal property of the car, writing down all articles left in the car and taking them out bagging them along with the license plate of the car. The inventory sheet gets put into the file and a reasonable price is assigned to the personal property should the debtor come to pick up his/her property, usually not too bad between $50.00 and 100.00 and I believe in some states the license plate must be returned free of charge since it is really owned by the state and not the debtor.
The repossession company has to send out a certified letter within 48 hours of the repossession advising the owner of the repossession. This letter is sent to the last listed address on the registration and I can’t tell you how many times this letter does not make the debtor. However this will come back to the repossession company and be proof that they did try to advise the debtor by way of certified letter as the law states in most states. The repo company will then begin to charge storage on the car and bill the bank, the bank will obtain a repossession title and have the repo company bring the car to the auction or have its own transport company bring the car to the auction as soon as possible. Usually within 15 days of the repossession the car will be at the nearest auction, even if they do not plan on selling it for 2 months or until the new title arrives the cost is much less to keep the car at auction then the repo company storage yard.
While at the auction the bank will send a letter advising the debtor that the car will be sold at auction after a certain date and this is the last you hear from anyone until it is sold. Once the car is sold, the bank will send you another letter advising the sale price plus repossession costs giving you a deficiency balance owed. At that point the bank or finance company has the option to sue you for the deficiency balance of the unit. Some finance companies sue and some will let it go, this depends on your income and chances of recovering the cash. usually the law firm or collection agency with the debt will make that decision.