I'm behind in payments, my total amount remaining (as of now, with interest will go up) is just under $4,000. I lost all my income in November and have been struggling to catch up, I've already tried to do a restart plan when they added a few hundred to each month going forward. But I wasn't able to keep up with payments. I am listing everything but the children and cat for sale. However, I'm stressed a repo truck is going to come get my HVAC system. Will they actually do it?
Will Microf actually repo my HVAC?
byu/Lazy-Importance6618 inpersonalfinance
Posted by Lazy-Importance6618
3 Comments
No you are looking at a mechanic’s lien against the property. They will take it out of the house sale. This is if they can’t just go through collections.
Yes, they could. But there are some “ifs” and “it depends”. It’s not like repo on a car or TV which are a lot easier to pick up. Have you tried carefully reading the finance contract?
typically that sort of improvement that is attached to the house is not possible to be repossessed or removed without the owners permission. There is usually a specific remedy called a mechanic lien but that depends on your state. It essentially allows them to petition the court to place a lien on your property for the amount that you owe them which they would be paid out if you ever sold your property. It’s supposed to be a way for them to have a greater chance of getting their money back without having to sue you which can be dubious if you do not have any other assets besides the property.
The fact that you mentioned repo makes me think you signed something in your specific contract that would give them the ability to repo the outside air conditioner without necessarily having to see you or get a mechanics lien. In which case you really should be looking at your contract carefully to see under what circumstances they would be allowed access to do so. A used air conditioner is not really worth much if they’re trying to install it somewhere else so it’s usually more for coercion to try and get you to make your payments.