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Repossession and Public Records A repossession is just what it sounds like a lender repossessing the property (either movable or immovable) after assessing that you have failed on payment. This can have serious consequences on a credit report and an overall financial reputation.
Impact on Credit Reports
An auto being repossessed will be reported as a derogatory item on the borrower’s credit report. That negative item can stay on the report for seven years reducing even more the credit score from before. The impact can vary, depending on the borrower’s previous credit record and the scoring model used, but it may cause a drop of at least 100 points12.
The ultimate goal of a tax foreclosure is to get rid of unpaid taxes.
Although repossessions themselves are not public record, the resulting deficiency judgment—the balance left due after the lender sells your vehicle—can be recorded in such a way. Such judgments in turn, can impact future loan applications since these are manifestations of financial difficulties In any case, the message is that even if one of these problems appears on your credit report from a major bureau (after it has received enough data to include this kind) — but only bankruptcy filing information can show at present due to recent regulatory changes; civil judgments and tax liens no longer do34.
Rebuilding After Repossession
Even if repossession is making things tough, there are still ways for individuals to repair their credit. This can involve (transition words) making payments on other debts in a timely way, challenging errors found within credit reports, and settling with lenders12. Regularly monitoring your credit can also help you spot areas to work on and make sure everything listed is accurate45.
Ultimately, the immediate impact on credit scores and potential future public records in the form of deficiency judgments can be minimized through proactive financial management.
