When you default on a loan, the lender may charge off the loan, meaning that they no longer expect to collect the debt from you. However, this does not mean that the debt is forgiven or that the lender cannot take action to collect the debt, including repossession of the vehicle.
In Texas, Ford Motor Credit has the right to repossess your car if you default on your loan, regardless of whether the loan has been charged off. The only way to prevent repossession is to pay the debt in full or to make satisfactory arrangements with the lender to repay the debt.
If you are behind on your car payments, it is important to contact Ford Motor Credit as soon as possible to discuss your options and avoid repossession. The lender may be willing to work with you to modify the loan terms or to set up a payment plan that you can afford.
If you do not contact the lender and make arrangements to repay the debt, they may eventually take legal action to repossess the vehicle. In Texas, the lender must provide you with notice before they repossess the car. The notice must include the date and time of the repossession, as well as the location where the vehicle will be taken.
You have the right to redeem your car after it has been repossessed, but you must pay the full amount of the debt, as well as any repossession fees and storage costs. If you do not redeem the vehicle within the specified time period, the lender will sell the car to satisfy the debt.
To avoid repossession, it is important to make sure that you are able to make your car payments on time and in full. If you are having financial difficulties, contact the lender as soon as possible to discuss your options.
