Repo Question

[tracibest]

What is the name of your state? Florida

Okay, I will try to keep this short...

My sister is buying a truck from my husband and me, but it is in our names, and we are paying the bank, she makes the payments to us. We have a contract, signed and notarized. After the 20th of the month, a late fee is added on and 5 bucks a day after that. She still owes november late fees, and has not given a dime for December. My actual question is this: Can we repo the truck at the sixty days counting from november or do we have to wait until sixty days from december?

 

[drago]

5 dollars a day late fees will not fly. It's called usury.

As to the repo what does your contract say?

 

[tracibest]

My contract says;"The borrower promises to pay a late charge of $25.00 for each installment that remains unpaid for more than 5 days after its due date. There will be an additional charge of $5.00 per day that the installment is unpaid after the 5 day grace period. This late charge shall be paid as liquidated damages in lieu of actual damages, and not as a penalty. If installment payment reaches 60 days overdue, the lender reserves the right to repossess the vehicle, with the borrower still held responsible for the entire remainder of the loan and any late charges due. If any payment obligation under this Note is not paid when due, the remaining unpaid principal balance and any accrued interest shall become due immediately at the option of the lender."

That is the paragraph pertaining to the payments. It also says;"All payments on this Note shall be first applied in payment of accrued interest and any reminder in payment of principal."

Does that mean that November's payment has still not been made, just the late fee and a portion of the actual truck payment?

 

[drago]

Play it safe and wait until 60 days after 12/25/03 if you're sure that a repo is what you want to do. Properly notify her of your intentions in writing.

A few questions.

When did this contract start and what was the total original amount?

Has she been late before?

Can you afford the payments without her contribution?

Is this vehicle her means of transportation to work?

Has her financial status changed?

Has your relationship changed?

When you made this agreement did you anticipate it going bad?

Are you willing to renegotiate?

What will life be like for both of you after a repo?

Admittedly these questions are none of my business but you seem savy enough to consider other methods.