Texas Car Repo: Whether a car repossession in Texas is voluntary or involuntary, there are certain procedures that must be followed after the bank or finance company repos a car.
Surrendering your vehicle also known as voluntary repossession to the lender does not void the car loan contract. You are still responsible for the loan and deficiency balance.
Voluntary Repossession: 4 Strategies to get voluntary and involuntary car repossessions from credit reports. Lenders must follow particular steps to collect deficiency balance.
When you reinstate a loan due to car repo, the derogatory marks remain on credit reports that’s why these steps to rebuild credit after car repo are necessary
Having a repossession in your credit files may not prevent you from getting a mortgage loan but it’s best to have other positive credit to offset the repo.