Facing a repo
I may have bit more than I could chew. This is Puerto Rico prices btw. I’m a professional pilot/flight instructor doing freelance work, I’ve had a slow couple of months with no steady income and missed two car payments. The lender reached out and I’ve been in contact with them — they’re offering an extension agreement if I can provide bank statements and a hardship letter, which I’m working on today.
The loan balance is higher than what I could realistically sell the car for privately in a short timeframe, so I’m weighing options.
A few questions for anyone who’s been through this:
**1.** If I sign an extension agreement, does that reset the clock or just pause the repo?
**2.** If it eventually does get repossessed, how do lenders typically handle the deficiency balance — do they negotiate?
**3.** Any advice on protecting your credit score as much as possible through this process?
I’m really embarrassed about my situation. Trying to stay calm and handle this responsibly. Appreciate any advice.