Retrieve the Vehicle

Once the vehicle is repossessed, it is taken to the repossession company's storage lot. Further instructions are given from the lien holder as to the next actions to take.

Storage of Vehicle

Vehicles can be held in storage for 10 to 21 days if the debtor has intentions of getting their vehicle back. The lien holder is not legally obligated to redeem it to their debtor.

Release for Auction

If the vehicle will not be redeemed, the lien holder faxes the repossession company a "release" for an auto auction to transport the vehicle to auction. The lien holder can refuse the highest bid at auction if they expected more. The amount the vehicle sells for is subtracted from the loan balance. The difference is what the debtor is responsible for paying.

Voluntary Surrender Form

Many companies require the customer to sign a voluntary surrender form. These forms have a clause stating the lien holder has deficiency rights and will hold the customer responsible. In rare cases, the lien holder will waive a debtor's deficiency rights.

Options

Smaller banks and credit unions often accept three bids and sell to the highest bidder locally rather than go through an auto auction.

Source:

FairDebtCollection.com: Repossession