Car Loan via Assume Balance Payoff or Impounding - A New Way to Stay Out of Replevin Case and Respossession of your Auto

One of the worst dilemma of a car buyer who opted in for car financing or mortgage loan with banks or financing companies is repossession. When this happens, it's your worst nightmare on the way to coming true. The reason is because you will end up with at least 2 court cases - replevin case and BP-22 case. In the Philippines this is 2 of the worst financial case you won't want to end up with. The reason is because if you have either under your name, chances are, you won't be able to qualify for many types of collateral and non collateral loan anymore.


Whether you have a second hand car or a new auto, it falls the same with respect to a court case called replevin. It means you are in bad credit when this happens. You cannot take it out of your credit and financing profile for as long as you will not settle is via securing a court case clearance. In the end, the worst effect of this is that you can no longer get a new car from any bank and may not even get yourself a second hand car from any financing company in the Philippines.

You can read a good post here to understand more about replevin case due to car repossession. But while in this case, you have to act fast and I mean really super fast. To every problem there is always a solution. It may not just yet be too late for you if you will find somebody who can talk it out with you regarding options of avoiding this case and the hassle of securing a court case clearance with a local regional trial court (RTC). Somebody who knows his or her way in and out of this kind of problem. Let me discuss in short terms a shortest cut solution to this problem.

Solution to Avoid Replevin Case Over your Car Loan Mortgage

There's actually just a couple of ways you can avoid getting a replevin case. One is to avoid repossession of your car prior to a legal case filed by the lending or financing company. The second is if you are already in the brink of car repossession, you must have the car mortgage settled either in full cash or take a restructuring program agreement with the bank or financier.

Either which, there is no guarantee they will not file a court case against you because in the first place, a court case is the only way they can secure assurance that you will give them the car and not run with it just like what others think is the solution when it is actually not. It will not be easy. Banks and financing companies won't want you to take back your car at all. Rest assured they will find a way to repossess your car and take it from you at all cost. Even if they have to resort to delaying tactics and communication failure. The solution, take these steps as I've listed below:

1. The first thing you should do is to make sure that the legal department hasn't filed a case against you yet. Secure an assurance or guarantee letter that there is no case just yet as necessary. Believe me that that only the wisest will get out of it.
2. After making sure there is no case filed yet and you have a guarantee letter that they haven't filed one by talking to the right people including the financing legal department, ask for a resettlement computation or an amicable settlement amount or a restructuring computation and yes, you have to ask to repudiate all penalties as much as possible and use the promise that you are willing to pay for the full amount of loan under mortgage even if you are still on your way to find a way. This will guarantee you a delay and help you get the time to find a way to push thru with other options you have below.
3. Talk to a qualified loan agent or loan consultant who have providers willing to do a payoff balance or assume balance or car loan takeout. Make sure you qualify. A second option is to sell the car via assume balance to someone you know. The third and probably the least acceptable choice you have is to find a provider willing to assume the balance of your car in exchange of a car impounding possibly from private financiers. Here, you will have to surrender the car, keys and everything but will get the assurance that no case will be up and filed against you at all. The first option would be best while the third option is the least you would prefer.
4. After securing a provider, get the requirements and prepare them all as fast as you can. Remember that the bank of financing company will not wait for you, they will get your car at whatever cost especially if you don't communicate with them. Be sure to act fast on this. Prepare all documents!
5. Be sure to stay on the watch for the process of your car loan takeout whatever option you go for amongst the 3 choices I already gave you above. Communicate and always open your lines to bank calls and provider calls. Make sure to mediate and as much as possible facilitate all communication efforts between your private financier who will take out your mortgage loan with your bank or financing company.
6. Keep close watch of the process. You can't rest at this point but instead you must make sure everything else is going fine until you take out the car from your bank or financing company.
7. Remember your third choice? It's your last option in case all else fails. Take note of it. Even though you literally almost lose your car, the good thing behind is you don't get in to bad credit and get a replevin case. Note that it is what you are avoiding so you can go on the next time to get another chance at a new or second hand car mortgage going again if you recover financially. Never mind losing the car because what's important is you don't lose your good credit status. It's a just matter of realizing which situation is better. Keeping a car under mortgage and bad payment and losing it later along with having a court case you can't get out of forever Vs losing a car and having the liberty of getting another chance of car loan because you have maintained your good credit status.

For car payoff balance or assume balance or impounding option, please talk to me. It's free to ask for a consultation if you can qualify to any. Or you may visit my website for car loan.

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