Whether you catch yourself temporarily unable to accomplish your machine valuation, you may be able to appeal a deferral or forbearance from your lender. With a deferral or forbearance, your lender allows you to skip that month's cost and adds an extra balloon reward to the head of your loan. While you may be charged an added fee and/or interest for doing so, it can give you needed breathing room.
Instructions
When you contact your lender, be sure to have your account number and vehicle identification number available.2. Explain the details of your current financial hardship.1. Contact your lender regarding their deferment policy. Most lenders have some type of deferment or forbearance policy in place, though the terms will vary. Ask your lender if they have such a policy, what the terms and fees are, and if there are any criteria you must meet to qualify.
Let your lender know that you are unable to pay, but want to avoid delinquency or collection actions against the account. Offer to provide documentation to support your claim.
3. Understand the lender's terms for deferment and the consequences of extending your loan. Deferments or loan extensions usually require some type of fee and you may also be required to pay at the least the monthly interest on the loan. Weigh the cost of the deferment carefully, as it may be more expensive than simply making your payment as scheduled.
4. If your lender agrees to defer your payment, get the details in writing. Read over the deferment documents carefully and ask questions if anything is unclear. Sign the documentation and maintain a copy for your records.
5. Consider your options if you foresee a long-term inability to pay. Talk to your lender about refinancing or a voluntary repossession, or consider selling the car to relieve your obligation to the lender.
