Michigan Repossession Laws
RepoRant is NOT a legal service and is providing the following for informational purposes only. This is NOT legal advice and you should always speak directly with a certified Michigan lawyer to help you with any Michigan Repossession Law decisions.
Michigan Repossession Law states that your possessions can be repossessed under the following conditions:
· Repossession in MI can happen when you have signed an agreement while using the property as collateral for the loan.
· If you fail to honor the loan agreement terms, then the property may be put up for repossession immediately.
· The majority of lenders will have you acknowledge this in your loan papers, such as a car loan which could lead to Michigan auto repossessions.
· The majority of Michigan Repossessions are car repossessions or truck repossessions, but can really be any Michigan vehicle repossession that is encumbered with a loan.
· This could include RV repossession, Motorcycle repossession, ATV repossession, Boat repossession, or even Airplane repossession in Michigan.
· While Michigan vehicle repossession companies have many rights under the law to recover your vehicle, they do have to adhere to certain rules limiting how and where they can repossess your property.
· Michigan repossession agents may not enter your home uninvited to recover your property.
· Michigan repossession agents may not use violence in any way to repossess your vehicles, or other property.
· Repossessions in Michigan cannot happen when a repo agent has tricked you into bringing your vehicle into a shop and then repossessing it after you've left.
· However, if you bring it in on your own, then the repo agent does have the right to come take your car or truck up for repo.
· Michigan repossession agencies do NOT need to notify you prior to repossessing your vehicle.
· There does not have to be a court hearing in Michigan in order for a lending company to repossess your car or truck.
· Mortgage lenders are not able to repossess a house in Michigan.
· Michigan repossession law requires that homes be placed into foreclosure and then auctioned if the loan cannot be paid.
How to get your Michigan car, or truck repossession back from the repo agency after it has been repossessed:
· Michigan repossession laws dictate that a lender must mail all borrowers of a repossessed vehicle a notice stating that you have the right to retrieve (redeem) your car or truck once you have satisfied all of the outstanding issues related to the vehicle repossession.
· The notice from the Michigan repo company will inform you of when you must redeem your repossessed vehicle by before it is to be sold at auction.
· You may be required by the lender to pay off the entire loan amount of the repossessed vehicle before getting the car or truck back.
· Michigan repossession laws do not allow you to file for bankruptcy to avoid repossession of your vehicle.
· It is always advisable to contact a Michigan certified attorney to help you with your decisions related to Michigan repossession laws.
Michigan repossession laws allow you to retrieve your personal belongings from your repossessed vehicle:
· The Michigan repossession company will inform you of how to retrieve any personal items from the repossessed vehicle.
· Michigan repossession laws allow repossession companies to remove all loose items from the car or truck and store them at cost to you.
· You will be given an appointment with the Michigan repossession company to come redeem your property and/or your repossessed vehicle.
· If the Michigan repossession company does not allow you the opportunity to retrieve your property which was located in the repossessed car or truck, then you may contact the lender who you received the loan from and inform them what items you need back.
If you don't pay for your Michigan repossessed vehicle, it may be sold at auction:
· Michigan repossession laws allow the lender to sell your repossessed vehicle at auction if you do not redeem it by their deadline.
· After the sale of your car repossession, the lender will send you another notice informing you what your repossessed vehicle sold for.
· The notice will inform you what the balance is between what you owed on the repossessed vehicle and what it was sold for at auction.
· Michigan repossession laws allow the lender to collect the remaining difference from you if the auction price of the repossessed car or truck did not cover the full balance of the loan.
You have options under Michigan repossession laws if the lender tries to collect the loan balance from you:
· If the lender sues you for the balance of the loan on your repossessed car or truck, you may have valid defenses and/or counterclaims to what they are suing you for.
· Be sure to review all Michigan repossession laws first.
· If by Michigan repossession law you find that the lender and/or the Michigan repossession company did not properly inform you via written notice of your rights and deadlines/fees, then you may have a claim against them.
· Michigan repossession laws also protect you from the unreasonable sale of your repossessed vehicle at auction.
· This means that if your repossessed vehicle is sold well under the appropriate auction value, then you may not be responsible for the full balance against your loan.
As always, be sure to contact a certified Michigan lawyer to help you with all Michigan Repossession Laws.