Facing repossession can be an easy situation to get into and difficult one to get yourself out of. Many lenders don't want to repossess the vehicle. They want the money. The truth is, to a lender, that vehicle is not worth what you still owe one it.

There are many ways to avoid having your vehicle repossessed. If you feel that you are going to be embarking on the journey of not being able to make your car payments, make them on time, or you have already missed payments, consider talking to your lender. Depending on the situation, your lender might be able to work out something with you, whether it be rewriting the loan or deferring payments. Sometimes even if you are a few payments behind, the lender will be able to either put those payments that are missed on a payment plan or defer them to the end of the loan, but you must still make your monthly payments on time.

There are different types of lenders and how forgiving they are depends on that. Your traditional lenders will be more forgiving. They have a much larger portfolio than a "buy here pay here" lender. A "buy here pay here" lender is much less forgiving and will want to obtain possession of your vehicle the moment that it comes time for repossession. This is where they are making their money, and if you are paying, they aren't getting paid. These lender will also go to all costs to get the vehicle back, whether they take trip to your work to see if the car is there, they might even sit in the parking lot all day waiting for you to show up, to calling your mother and saying that they are an old friend and need to talk to you right away but you are not at home and they need to find you right away. Yes, they are sneaky; but wouldn't you do the same if it was your money and lifeline on the line?

Review the law in your state. Knowing what a lender in entitled to do will help you better understand how to avoid having the repo man show up at your doorstep. Every state law is different.

The time frame in which a lender can repossess your vehicle varies depending on how your payments are made. If you law dictates that you must be three payments behind before the vehicle is eligible for repossession, then you need to know that if you make your payments weekly that is only three weeks, but if it is monthly, then it would be three months.

Other parts of the law might dictate the process that needs to happen before the vehicle is repossessed. Some laws state that the borrower must be notified at least a certain time before the vehicle is repossessed that they are in default and the manner in which they can bring themselves out of default.

If it does come time for you vehicle to be repossessed, know the manner in which they can do it. Most states allow the lender, or his agent, to walk onto your property and take possession of the vehicle. Most states, however, do not allow for access into any type of dwelling. So if you vehicle is in the garage and the door is closed, they cannot enter to take it. But if the door is open, they can hop right in the driver seat and drive off. If the repo man does come to your house and requests that you turn the vehicle over, you don't have to. In most states this is civil, not criminal; so the police do not have any jurisdiction over this. The lender must take you to court and have the court order you to surrender the vehicle.

Review your local law, it will put a lot of perspective on the whole repossession process.

But if your vehicle does get repossessed, there are certain procedures that a lender needs to follow to try and recover some of the debt that is owed. A borrower has a certain amount of time to fix the outstanding balance on the loan. Some states allow you to just pay the payments that you are behind which is called the "right to cure," while others require you to pay the full balance of the loan. A lender will assess fees including the cost of the repossession, storage fees and any repairs that they might have to do to the vehicle to prepare it for sale. Once this is done, the vehicle has to be sold at some sort of auction to recover those fees. When a vehicle is sold at an auction, the full value of the vehicle is never obtained. The remaining balance is still your responsibility to pay.

Make sure that you review all of your option and you communicate with your lender. They might be more forgiving than you think.