Is there something I should know about a repo on a

[Ladybugsy]

I was reading another thread, and I came across someone mentioning that if a repo was a leased vehicle, it was a "done deal"...could someone elaborate on that for me please? I've been looking on Whychat's site, and in other places here, and can't seem to find it. I had a repo'ed car in 1998 due to a job and state change. I have already been taken to court, and actually was ordered to pay FMC around 10,000.00. The car was worth 18,000 bluebook and they sold it for 8 thousand. They have made me come to an office to ask me questions, and told me they have 20 years to collect on this debt. Our financial situation has somewhat improved, and I don't want them to come looking for me. I'm learning so much from this board...but I hate to keep asking questions that I should be able to FIND the answer to...lol..so please excuse me if this it a redundant question.

[Frisbee]

Congrats on the catch....nobody else has ever called me on it.

 

Here's why the lease repo is different. Remember the way it was titled? It wasn't titled in your name with the bank as a secured holder was it? Nope, it was titled TO the bank. When a consumer loan is called and the car becomes a repo there are hoops to jump through to clear the title.

 

On the lease car, there are no hoops because the bank always "owned" the vehicle. Think of it like you are just paying to borrow my car, and then I want it back. Since it's in my name, I just come over to your house and take it. Now, if you signed a paper stating that you would pay me $20,000. to "use" my car and you only paid me $10,000. then I have a slam dunk. You get a judgment and I have (depending on your state) 20 years to collect.

 

Never lease. The laws don't apply the same. Does this stupid explanation help?

[Ladybugsy]

No, I can' say it helps since I was hoping that it wasn't legal to do this on a lease...lol. But thanks anyway.

[Frisbee]

Sorry, but know this: negotiations are always an option. Say you get a tax refund, offer it to them to close the case. Of course should you do this, please come to the board and post first so that the experts here will help you get the best result.

 

I'm beginning to think that nobody on this board has their car anymore!!!

[Why Chat]

Frisbee is correct, leasing is a VERY bad idea for a lot of reasons. (You pay more for insurance,you build no equity,you get shafted if you get repo'd)

 

You are TOO LATE to do anything except double check your State lien statutes. It MAY be there is a 20 year SOL on judgments, but it may also mean that it is UP TO 20 years, and the judgment must be renewed every 5 years to be enforceable.

[Ladybugsy]

Where could I check this out, Whychat? You are giving me hope..lol.

[Credit Please]

I thought a leased Vehicle was covered under the UCC?

[Frisbee]

The laws are different. They don't even have to notify you in most states. Total screw job. The law recognizes the lease company as the owner.

[Frisbee]

Lady, WhyChat's site, under his sig, lists states. Click there to see about your states judgment laws.