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1. Default: Repossession can occur when a borrower defaults on their loan agreement. This typically involves failing to make payments as agreed upon in the contract.
2. Notice of Default: Before repossessing a vehicle, the lender must provide the borrower with a written notice of default. This notice must specify the amount in default, the date by which payment must be made to cure the default, and a statement that the vehicle may be repossessed if payment is not received.
3. Right to Cure Default: The borrower has a right to cure the default within the time specified in the notice. If the borrower makes the required payment before the deadline, the lender cannot repossess the vehicle.
4. Self-Help Repossession: In New York, lenders have the right to repossess a vehicle through self-help, as long as they do so without breaching the peace. This means that the lender cannot use force or violence to repossess the vehicle, and they cannot enter a private property without the owner's permission to repossess the vehicle.
5. Court Order: In certain cases, lenders may also seek a court order for repossession. This may be necessary if the borrower has hidden or concealed the vehicle, or if there is a dispute about the ownership or possession of the vehicle.
6. Redemption: After the vehicle has been repossessed, the borrower may have the right to redeem the vehicle by paying the outstanding debt plus any associated costs and fees.
7. Sale: If the borrower does not redeem the vehicle within the specified time frame, the lender may sell the vehicle to satisfy the debt. The proceeds from the sale are used to pay off the debt and any remaining funds are returned to the borrower.
It's important to note that these laws may change from time to time, and it's always best to consult with an experienced attorney or review current laws and regulations for the most up-to-date information.