Applying for a car loan modification

Posted in Car Loan Modification by admin

You are falling behind your car loan payment. Your vehicle is close to being repossessed by your lending company. You have just lost your regular job, and you have other bills that you need to pay. Is there a way to keep your car, even though you fail to pay the remaining car loan balance?

Fortunately for you, there is a way to keep your vehicle from being repossessed. Car loan modifications can present you a solution to your loan and payment problems. Applying for car loan modifications can give you some more time to settle your accounts with your lending company by presenting you with different options and terms of payment, so that you can easily pay them back the remaining car loan balance.

However, getting a car loan modification can be tedious, as the process in getting one is quite lengthy and may take days or weeks to be approved. But if you are in dire need of one, you should follow these steps in order to get your application for a car loan modification approved:

  • The first thing to do is to call your lending company and let them know about your current situation. Inform them that you have a hard time paying off your car loan, and ask them if they can get you a car loan modification. Remember that some companies and banks do not offer car loan modifications, so before you get a car loan, make sure that the lending company or bank can provide you with a car loan modification should the need arise for it.
  • The lending company will usually ask for some documents proving that you are indeed in a pinch. This is to prevent fraud and to keep themselves from being scammed by their borrowers. Provide them with the necessary documents (e.g. unpaid bills, lay-off letter, etc.). After submitting the documents, you will need to wait for a day or two (or sometimes, a week) before they can approve your application.
  • Upon approving your application for one, you will be presented several options on how to pay off your remaining balance. Talk it over with your creditor until you reach an agreement regarding the terms of payment.
  • Pay off the remaining balance according to the new terms of paying your car loan. Of course, failure to pay again may result in them not giving you another chance, and they will repossess your vehicle. Try to pay on time this time around.

If you still have problems regarding car loan modifications, you should phone your lending company and have them explain it for you. Just make sure that after you have reached a compromise, you will pay on time so that you won’t have to worry about your car being repossessed.