How do you repossess a vehicle in Texas if are an individual lienholder?

1. Default. The borrower must be in default on the loan agreement, typically by missing a certain number of payments.

2. Breach of contract. The borrower must have breached the terms of the loan agreement in some other way, such as by failing to maintain insurance or allowing the vehicle to be damaged or destroyed.

3. Consent. Texas law does not require a lender to obtain a court order or judgment before repossessing a vehicle. However, a lender must obtain the borrower's consent if the vehicle is parked on private property. (Sec. 9.503(f), Texas Finance Code)

4. Peaceable repossession. A lender or the lender's agent generally can only repossess a vehicle if it can be done peacefully. It is considered a Class B misdemeanor to repossess a vehicle in a manner that breaches the peace. (Sec. 9.504(a), Texas Finance Code)

Notice Requirement

Before a lender can repossess a vehicle, the lender must send a notice to the borrower that states:

* The time and place of a proposed sale.

* The right to redeem the vehicle within ten days by paying off the loan or arranging for voluntary surrender.

* Contact the lienholder to discuss redelivery.

Redemption rights

A borrower has ten days to redeem a vehicle after it has been repossessed. Redemption is done by paying off the entire loan balance, including any penalties and fees.

Deficiency Judgment

After a vehicle has been repossessed and sold, a lender can sue for and recover the difference between the amount it received for the vehicle and the amount owed on the loan — a deficiency judgment.

Prohibited Actions:

* You may not repossess a vehicle parked on the private property of a debtor other than the contracting debtor without authorization from the debtor who owns or controls that property.

* You may not repossess a vehicle from an individual's home or garage (except if an individual is the defaulting debtor) unless:

* The contract explicitly authorizes the repossession; and

* You obtain a court order authorizing the repossession.

* You must return a repossessed vessel, motor vehicle or trailer to the debtor if any of the following requirements are not satisfied:

* The debtor gives you written notice not to sell the vessel, motor vehicle, or trailer and pays the towing and storage charges (if any).

* You give notice of the sale of the vessel, motor vehicle, or trailer at least ten (10) days prior to the date set for the sale;

* You offer to sell the vessel, motor vehicle, or trailer back to the debtor for a price not exceeding the sale price offered by a third-party purchaser;

* Within ten (10) days of the debtor's request, you furnish a written statement of the amount of the loan balance and the amount of any fees or charges that the debtor must pay to redeem the vessel, motor vehicle, or trailer; and

* You furnish a written statement of all bids or offers received at any public sale, including the name and address of each bidder or offeror.