Q:

What are the repossession laws in Missouri?

A:

Quick Answer

Car lenders in Missouri can repossess a car, try to sell it and then collect the difference between the sale price and remaining loan balance, according to Nolo. Lenders can repossess a car without a court order in Missouri, notes attorney Douglas B. Breyfogle.

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Full Answer

Before a car loan company takes a vehicle in repossession, it must notify the owner. Licensed repossessors cannot take a car without breaching the peace, which means someone can't forcibly take the vehicle or threaten someone before taking the vehicle, according to Breyfogle.

Lenders can keep the car or sell it at an auction. An owner can keep the car by paying the entire balance of the loan, bringing the loan current and getting the financing reinstated, purchasing the car at an auction, or filing for bankruptcy protection, notes Breyfogle. Lenders don't have to reinstate the loan after the borrower becomes current. If lenders auction the car, an owner can buy it back but still must pay the difference between the sale price and the loan balance. This difference is called the deficiency. If someone files for bankruptcy, collection and repossession procedures will stop until the court decides what to do with the vehicle.

In Missouri, owners have 21 days to cure the deficit of a loan before a repossession takes place and after the lender issues a Right to Cure letter, according to Midwest Lenders Services. License plates remain with the debtor once a vehicle is repossessed.

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Related Questions

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    Where are repossessed autos taken?

    A:

    After a car is repossessed, the repossession company takes it to its lot, reports CNN. After that, the fate of the car varies with state law. Some states require the lender to tell the owner of the car the fate of the car, notes the Federal Trade Commission.

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    How do you get your repossessed car back?

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    Three options exist for getting a car back after repossession: redeeming the car or reinstating the loan (if legal in your state or in your contract), bidding on the car at the auction and negotiating with the creditor. No matter which option you choose, you have to move quickly.

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    How do I find out if a certain car is up for repo?

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    To determine if a vehicle is up for repossession, contact the finance or leasing company that provided the car loan. Failure to make payments on time typically gives the creditor or lessor the right to repossess the vehicle.

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    What are some tips for voluntary car repossession?

    A:

    Tips for voluntary car repossession include communicating with the lender about the inability to make payments, discussing the time and place of surrender, and paying fees and the balance due after the lender sells the car, explains About.com. Customers also need to understand the potential impact on their credit scores.

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