Repossess a vehicle

[Cat7Heaven]

What is the name of your state?What is the name of your state? Tennessee

I read a thread similar to this, but it didn't quite answer all my questions. Please forgive any duplications that might come from this posting.

Two years ago I loaned money to two "friends" (not really friends any more) who are a married couple, and in exchange they signed two promissory notes. The promissory notes simply stated that it must be "paid on demand" and no specific due date was included. I made the mistake of being nice while they were in financial trouble. I received and am listed as a lien holder on both of thier vehicles. A new copy/print of the titles to each vehicle was sent to me from the Department of Safety and I have them locked in a safe. Each promisory note is attached to one of the vehicles and does include the VIN, make, model, year, etc. for the vehicle it is attached to, as well as the amount payable on demand. I did not ask for interest or any type of additional compensation for the loan.

I have verbally requested payment on several occasions over the last year. I am preparing to write a formal letter to be sent by certified mail to them requesting the payment.

My question is, what are the proper steps for me to take to demand the payments and, if no payment is received, repossess the vehicles?

 

[JETX]

"what are the proper steps for me to take to demand the payments"
*** Send them a demand letter (certified RRR) stating the terms of repayment.

"and, if no payment is received, repossess the vehicles?"
*** There is your problem. Though you have a lien on the vehicles and can thereby block any attempt to sell them..... your agreement failed to provide you with a 'security right', which is needed to legally repossess the security (vehicles). The reason I said 'legally' is that there are lots of repo services out their who do not know the requirement for security in the note and will very likely repossess the vehicles based solely on the lien shown on the title. Of course you have some risk if you attempt this, but it is your call.

One thing you might consider.... especially if you haven't seen the vehicles in some time. They might be in such 'trashed' condition that they are worth far less than any note or obligation..... especially considering that you make no mention of an insurance or condition requirements in your note.

 

[Cat7Heaven]

Thank you for the information. My only saving grace is that I used a form in a legal program to make the promissory notes. After reading them over again, these are included:

"Unpaid principal after the Due Date shall accrue interest at a rate of 5% annually until paid."
"If any payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process."
"This Note is secured by a Certificate of Title - VIN .... The Lender is not required to rely on the above security instrument and the assets secured therein for the payment of this Note in the case of default, but may proceed directly against the Borrower."

So I can add interest, file against them where they have to pay for the fees, and attempt to get the money from other sources than the vehicles? Or am I interpreting this wrong?

 

[JETX]

If the statements are correct.... it sounds like you are in a very good position.... including a security interest in the vehicle which would allow you to repossess the 'security' (vehicle).