brother repo

[cns]

What is the name of your state (only U.S. law)? nebraska
Due to an accident my brother needed to trim some of his unneeded expense to afford to keep his house. He decided that his camper would be sold. He was hoping to keep his motorcycle.

It didn't work, camper never sold and he began to fall behind on bike payments. He called bank. They were understanding and gave him a little exxtra time.

It didn't work. He contacted them and told them sale fell through so he would probably just hand bike back. They agreed and set up a time to pick up bike and told him if he did come up with money he would have a little time to buy bike back before being sold if he could pay loan in full.

They didn't come to get bike. He called woman at bank again. Got her voicemail. He left a message "that because it was harvest time and a farmer rented buildings and grain bins on land he didn't feel comfortable leaving bike outside with tractors and semis moving around. He would put bike back in garage but leave door open so it was in site and they had permission to retrive it." They never came.

One month later a friend offered to buy the bike. His offer would only leave an $800 deficiency. That sounded good to bro. Called woman again and got voicemail. Didn't leave a message. Man from bank called right back screaming that bro was hiding bike and they wanted it. Bro said "yes you can have it, but I did find a buyer" he was cut off by the man telling him to hand it over immediately or he would call sheriff and have him arrester. Bro agreed and told them to come and get bike.

He figured he would just have friend go to sale or call bank. He told his friend what happened and they agreed that they would wait for sale and go to that.

Then get a letter from collection agency demanding 4800. They sold the bike to the repo man for 3000. That repo man is now trying to sell bike for 7500. His friend was offering 7000.

Is this fair? He didn't get any say in the sale? and they can just sell it for any price?
I relize that after default it was no longer his property but arent there laws to protect people in this situation?
Don't they have to be commercially responsible and let him know when and where sale will take place? A repo man can just buy something on the spot for less than half of it's worth?
I'm in the wrong business.

 

[racer72]

Is this fair?

It never is when it comes to the deficiency that results from a repo. The creditor has no interest in selling the bike for as much as they can, they just want to dispose of it as quick as possible and this is usually at auction. This means the bike sold for a wholesale price. This is all perfectly legal.

He didn't get any say in the sale?

Why should he? He was not the legal owner of the bike. He gave up any say when he failed to comply with the contract he signed when he bought the bike.

Don't they have to be commercially responsible and let him know when and where sale will take place?

Nope. If he couldn't stay current on the payments, what makes you think he could have done anything at the auction. Even if he bought the bike, he would still be liable for the deficiency. I have seen former owners at repo auctions and things have gotten ugly a few times. It is preferred that the former owners stay away.

This scenario is happening all over the US today.

 

[cns]

If that is the case then can someone expain this to me? It's state code saying that they have to give him notice of sale and that the sale has to be commerically responsible. Letting the repo man buy it the day he picks it up is not responsible.
Also according to them he would have time to buy bike back before the sale or at the sale.
You are correct he couldn't buy it. But he did have someone that would have bought it and it would have left only 800 deficiency plus fees.


57A-2-706. Seller's resale including contract for resale. (1) Under the conditions stated in § 57A-2-703 on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where the resale is made in good faith and in a commercially reasonable manner the seller may recover the difference between the resale price and the contract price together with any incidental damages allowed under the provisions of this chapter (§ 57A-2-710), but less expenses saved in consequence of the buyer's breach.

(2) Except as otherwise provided in subsection (3) or unless otherwise agreed resale may be at public or private sale including sale by way of one or more contracts to sell or of identification to an existing contract of the seller. Sale may be as a unit or in parcels and at any time and place and on any terms but every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable. The resale must be reasonably identified as referring to the broken contract, but it is not necessary that the goods be in existence or that any or all of them have been identified to the contract before the breach.

(3) Where the resale is at private sale the seller must give the buyer reasonable notification of his intention to resell.

(4) Where the resale is at public sale

(a) Only identified goods can be sold except where there is a recognized market for a public sale of futures in goods of the kind; and

(b) It must be made at a usual place or market for public sale if one is reasonably available and except in the case of goods which are perishable or threaten to decline in value speedily the seller must give the buyer reasonable notice of the time and place of the resale; and

(c) If the goods are not to be within the view of those attending the sale the notification of sale must state the place where the goods are located and provide for their reasonable inspection by prospective bidders; and

(d) The seller may buy.

(5) A purchaser who buys in good faith at a resale takes the goods free of any rights of the original buyer even though the seller fails to comply with one or more of the requirements of this section.

(6) The seller is not accountable to the buyer for any profit made on any resale. A person in the position of a seller (§ 57A-2-707) or a buyer who has rightfully rejected or justifiably revoked acceptance must account for any excess over the amount of his security interest, as hereinafter defined (subsection (3) of § 57A-2-711).