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How do you avoid repossession?

Tara Baukus Melloq_v2.gifDear Driving for Dollars,
My dad bought a car and he is upside down now. He can't make the payments because they are so high. What can he do? His credit isn't good enough to refinance now and I can't pay it either, but we don't want to have it repossessed.
-- Karina

a_v2.gifDear Karina,
I'm sorry your dad is in such a tough financial situation. Repossession is a lender's last effort to try to recoup some of his losses when the debt isn't paid. Because your dad owes more than the car is worth, the lender is going to take a loss if he repossesses the car. Have your dad call the lender and talk to a loan officer about the situation. The lender may be able to defer a few payments or take partial payments until your dad gets back on his feet. Or, the bank may be able to rewrite the loan for a longer term so the payments are lower if your dad needs a longer-term solution.

Bankrate's content, including the guidance of its advice-and-expert columns and this Web site, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this Web site is governed by Bankrate's Terms of Use.

If you have a car question, e-mail it to us at Driving for Dollars.

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