Re: [WTW] Repossession, Sell and Deficiency Balance

[Dave Dougherty]

Title: Message

Probably all of the WtW programs are getting less for auctioned cars.  I know we are. This is because of the sharp decline in used car values this past year, due to the high number of new cars sold, but the used values are starting to rise again.   Please note that case law was made last year when a debtor sued a bank in Texas (and won) for getting too little for his repo.  It was determined by the court that the bank could have gotten more for the car at a more public auction.   Best Regards,   Dave Dougherty Ways to Work   Family Services Center 600 St. Clair Ave. Bldg 3 Huntsville, AL 35801 (256) 551-1610   For information on Ways to Work, please visit: http://www.fsc-hsv.org/fsc-wtw.htm ----- Original Message ----- From: Robin Seemann To: [EMAIL PROTECTED] Sent: Monday, January 26, 2004 9:29 AM 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   [EMAIL PROTECTED]                                             This message may contain confidential and/or privileged information.  If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose or take any action based on this message or any information herein.  If you have received this message in error, please advise the sender immediately by reply email and delete this message.  Thank you for your cooperation.