Expert: Michael Brotherton - 5/28/2008

Question
My brother had his truck repossessed today from my house. He was past due on 3 months payments. He tried to make current but they said they want all 12000 paid off or they are keeping it. He traded in his truck to get this truck and has had it since february of last year. How can they take it with no compensation to him? They should heve to refund some money. They will not even let him put the loan into my mom's name so that she would be liable for payments and she has excellent credit. Its through Wachovia, what can he do

Answer
The lender has the right to call the balance due after a default. Most will allow you to reinstate the loan or pay up to date but if they see a potential problem they can be very adamant about eliminating the problem.

Once they repossess the vehicle they are required to notify the borrower of public auction date, time, and location within ten days of the sale. The vehicle can be sold to the highest bidder regardless of how much it sells for and the borrower will be liable for the remaining balance plus costs.

If your mom wants to buy the vehicle the only option at this point is for her to pay the full balance plus costs with a new loan. You may be able to negotiate a short sale or settlement for less but you have to be pretty aggressive to get this done.

One thing you m might try to do is climb the chain of command at the lenders. The higher you go and the more aggressive you are the better chance you have of getting someone to work with you. Other than that, the law is on their side, not yours.

If he files a chapter 13 he may be able to get it back as long as he stays in the program. Contact at least two attorneys immediately before they sell the truck and see if he can get it back.

I may also be able to negotiate with them if you need help. This is one thing that I have done successfully over the years. Give me a call if you need help 877 270 8204.

Good luck.