Vehicle repossession can be a confusing and stressful process, whether you are a lender seeking to recover assets or a borrower facing the potential loss of your vehicle. Understanding the legal framework and procedures involved is crucial, especially when dealing with terms like “unit auto repo.” This article clarifies the process of vehicle repossession in New Jersey, ensuring you understand what a legitimate repossession entails.
Understanding Vehicle Repossession in New Jersey
In New Jersey, vehicle repossession occurs when a vehicle owner, also known as a debtor, defaults on their security agreement. This typically means they have failed to keep up with payments on a financed or leased vehicle. The legal basis for repossession in NJ is established under N.J.S.A. 39:10-15, which mandates that any request to title or sell a repossessed vehicle must be accompanied by a certificate of title. This legal requirement underscores the legitimacy of the repossession process when carried out according to state regulations.
For lienholders, such as banks or financial institutions, to legally repossess and subsequently sell a vehicle in New Jersey, they must adhere to specific procedures set forth by the New Jersey Motor Vehicle Commission (MVC). These procedures are designed to protect both the lienholder’s rights to recover their asset and the debtor’s rights to due process.
Steps to Legally Repossess and Sell a Vehicle
The MVC provides clear guidelines for lienholders to follow when repossessing a vehicle in New Jersey. These steps ensure that the process is conducted legally and transparently.
Seizing a Vehicle
Upon legally seizing a vehicle due to default, the lienholder is required to complete a Notice of Seizure of Motor Vehicle (Form OS/SS-55). This form is a critical document in the repossession process and must be mailed to the New Jersey Motor Vehicle Commission at the following address:
New Jersey Motor Vehicle Commission
Special Title/Repossession Unit
225 E. State Street
PO Box 017
Trenton, NJ 08666-0017
In addition to notifying the MVC, the lienholder must also notify the vehicle owner or debtor by mail about the intended sale of the repossessed vehicle. This Notice of Sale is essential as it provides the owner/debtor with a reasonable timeframe to redeem their vehicle by settling the outstanding debt.
Selling a Seized Vehicle
After a reasonable period, typically around 10 to 14 days after the Notice of Sale has been sent, the lienholder can proceed with selling the repossessed vehicle. To do so legally, they must submit a package of documents to the MVC, including:
- The original vehicle title. If the original title is lost, the lienholder must apply for a duplicate title and pay the associated $60 fee.
- Application for Repossession Certificate of Ownership (Form OS-SS-57).
- A copy of the original security agreement or lien contract that establishes the lienholder’s right to the vehicle.
- A copy of the Notice of Sale that was previously sent to the owner/debtor.
- If someone other than an authorized officer of the lienholding company is signing the application, a Power of Attorney (POA) for the signing individual is required.
- Payment of the title fee: $60 for a standard title or $85 for financed vehicles. An additional $60 duplicate fee is required if a duplicate title is necessary.
This complete package must be mailed to the same MVC Special Title/Repossession Unit address mentioned earlier.
Ensuring a Legitimate Repossession Process
To ensure the repossession process is legitimate and compliant with New Jersey law, it is crucial to adhere to all MVC guidelines and use the correct forms. Lienholders are advised to utilize the Instructions for Default of Security Agreement (Form OS/SS-99), which provides detailed guidance on the entire process.
For any questions or if assistance is needed, the MVC’s Title Records Unit can be contacted at 609-292-6500 ext. 5070, or via email at [email protected]. The MVC also offers the option to request a packet of information to be mailed, although original paperwork and fees must still be submitted via mail.
By following these procedures and utilizing the resources provided by the New Jersey Motor Vehicle Commission, both lienholders and debtors can navigate the vehicle repossession process with a clear understanding of its legitimacy and legal requirements.
Related Links
Instructions for default of security agreement
Notice of seizure of motor vehicle
Application- title repossessed vehicle
