We have much the same situation here. I too am looking to change our repo procedure. We had 1 car repossessed and it was sold a such a low price we actually increased the dollar value of the loan. ( the fee to repossess was greater than the sale price) I was thinking we might see if we could use the same repo service through the bank but then take possession of the car and try to see it. Has anyone else done this? Mary
________________________________
From: [EMAIL PROTECTED] on behalf of Robin Seemann
Sent: Mon 1/26/2004 10:29 AM
To: [EMAIL PROTECTED]
Subject: [WTW] Repossession, Sell and Deficiency Balance
Loan Coordinators:
We have a relationship with an independent repo firm. We use this firm when we have
no other alternative for collecting on a debt. We use to capitalize on maintaining a
lower default rate. The questions that have surfaced are
1. The repossession has occurred. We want to sell the car to collect on the
outstanding balance. We have don all of the
required and or legal notifications to the client. If we opt selling on a
dealership or private lot verses a public auction,
is there a process we must follow? To assure we get a fair price on a lot do
we take sealed bids or how can we
maintain that we are attempting fair price? What constitutes commercially
reasonable manner?
BACKGROUND RESEARCH
a. I have read that we must provide opportunity for the debtor to buy it
b. The sale must be conducted in a commercially reasonable manner in
attempt to get a fair price
2. If we opt to sell and not auction, can we go after the deficiency balance either
through debtor direct or small claims
court? Or can this only be attempted if we auction through a public auction?
We make every effort to get the most out of a defaulted auto. Our original Repo Man
was also providing auction services on his property and we were having to pay him
money due to the very low price received. Cars were selling for much less then they
were worth. We are seeking a new process. Any assistance or insight would be
appreciated.
Thanks
Robin Seemann
Ways to Work Loan Program
Trillium Family Solutions
101 Cleveland Ave. NW Suite 300
Canton, Ohio 44702
330-454-7066 ext. 318
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