Mississippi Auto Repossession Law

By Tracy Hodge
A car can be repossessed in Mississippi in cases of loan default.
the black sports car. image by Yuri Bizgaimer from Fotolia.com

Auto lenders in Mississippi can repossess a vehicle if the owner defaults on the loan. Auto owners may be in default if they fail to make their car payments or maintain automobile insurance, as outlined in the original loan documents.

Seizing The Vehicle

Mississippi auto lenders may hire repossession agents to seize a vehicle after the owner fails to abide by the terms of the loan agreement. Lenders may order repossession of a vehicle without judicial process, as long as the vehicle is seized in a peaceful manner. Lenders who cannot seize the vehicle in a peaceful manner may seek a court order to repossess the car.

Redemption Of Vehicle

Auto owners in Mississippi have the right to redeem the vehicle after it has been repossessed. Redemption must occur before the lender has sold the vehicle or made arrangements for its sale. To redeem a vehicle, the owner must pay the entire amount of the auto loan. Additional charges may include the cost of repossession, storage fees, cost of the sale arrangement and reasonable attorney fees for the auto lender.

Sale

A Mississippi auto owners who does not redeem his vehicle will receive a notice of sale by certified mail. Proceeds from the vehicle's sale will first be applied to repossession fees and the auto lender's legal fees. The remaining proceeds will be applied to the total amount due on the auto loan. According to Lawdog.com, Mississippi auto owners are responsible for any remaining balance.