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TheChosenOne

Vehicle Foreclosure?

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I was wondering if anybody could help a close friend with this. 

 

He unfortunately answered to a buy here pay here place and took his car ($8k value) and traded it in for a car he thought was in pristine condition from a guy who has a foreign name sounds like hes from Nigeria or something. Even though the guy was selling his cars outside of an old office building, my friend gave him the benefit of the doubt because, well entrepreneurship right? The problem is the next day all the check engine lights and a bunch of safety airbag etc. errors came up. He called the guy right away and the guy cussed him out and told him to just make sure to pay his monthly payment. My friend doesn't have a lot of money and the car seems to drive ok so he lets it go.

 

So my friend pays the first payment via credit card. My friend notices its a really amateur credit card processor like square. Anyway,. The check engine oil light comes on and he has a mechanic go to do a oil change and theres only 1 or 2 quarts of oil with metal shavings in the oil. This car obviously hasn't been taken care of at all. My friend calls this dealer and complains about the condition of the car and the dealer again says don't bother me and then won't respond to any emails or texts or pick up the phone when he calls. So when the 2nd payment is due my friend figures this guy will get paid late. So when he goes to pay him, he contacts his company (dealers girlfriend) and theyve added a late fee to which my friend didn't budget for. My friend cites the fact he had to put money into repairs and asks them to waive the late fee and they refuse. When my friend finally has the money to pay the payment AND late fee, they say they will only take certified check now and he has to drive an hour to bring it to them in person. Obviously this causes more time to elapse.

 

At the 30 day late mark, they file with the magistrate court saying that want the car back or the entire balance of the loan all at once. It actually say "foreclosure" on the served paperwork. I was not aware of any such thing as a vehicle foreclosure. This Nigerian guy has obviously done this to multiple people in the past. He never gave my friend a chance to be a good customer. He can't seem to find a lawyer because there's no money in it for the lawyer. 

 

Anybody got any advice for this guy? He's a good guy just kinda bad making money decision like who to buy a car from. What exactly is the scam this dealer is running and how do we counter it?

 

TIA

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I'm not an attorney and have no idea what manner of RISA your friend signed.   All I have ever seen have a default clause that specifies what can happen should a payment be late.

AFAIK if you friend was one day late then the lender could proceed with legally exercising their default clause.

 

The difference in wording is purely semantics, Foreclosure = Repossession

 

Perhaps someone else might have some advice. 

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What sort of pre-purchase inspection did friend have done?  For the oil to be that low, it sounds like he never even opened the hood to do a cursory check on his own.  Fluids are something to look at on EVERY potential purchase, even a new vehicle.  

 

Outside of some State-specific protections/recourse under the law, he is a buyer the moment he took possession.  Caveat emptor!  

 

As Marv appropriately notes, there is generally no requirement that a grace period be given without a late fee.  To claim that the funds are not there to pay a late fee says that they bought too much car in the first place which simply compounds the error in purchasing without an inspection. 

 

A card being processed via Square isn't a red flag.  Being allowed to MAKE the car payment using a CC is unique.  There was a period where Ford Motor Credit allowed for CC payments through the website, but I don't believe that is an option any more (or at least it isn't with another Chase-backboned online system, specifically Jaguar). 

 

It sounds like he has two viable options- either give the car back and find a reputable seller OR get the vehicle refinanced through a conventional lender but with the understanding that it sounds like a large chunk of money is going to have to be found in order to fix a multitude of issues.  But there isn't anything from what is described that counsel is going to be able to do for him. 

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I understand and he realizes he made a mistake and spur of the moment purchase but the seller refused anything but a certified check being brought to him in person upon the only the 2nd payment. The reason I included the credit card payment was to show that there was reason expectation that he would be able to use the credit card/debit card to pay over the internet and not have to drive an hour to drop payment.

 

What would be the best answer to file in this case?

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Square is a physical device used to process credit card payments.

 

How was your friend going to pay via credit card without presenting the card in person?

 

Have you and your friend read the entire contract your friend signed?

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2 hours ago, TheChosenOne said:

I understand and he realizes he made a mistake and spur of the moment purchase but the seller refused anything but a certified check being brought to him in person upon the only the 2nd payment. 

Once he was in default the creditor/seller has that right and YES, being late with the payment is in default.

 

The "in person" requirement is the major downfall of buy here PAY HERE.  One reason why anyone contemplating using that purchase method should seriously look at the location in reference to where they live and convenience.

2 hours ago, TheChosenOne said:

What would be the best answer to file in this case?

Unfortunately your friend has no defense.  His options are to pay the loan off or return the car.  There is no "out" legally on this one.

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5 hours ago, DollarDog said:

Square is a physical device used to process credit card payments.

 

How was your friend going to pay via credit card without presenting the card in person?

 

Have you and your friend read the entire contract your friend signed?

 

He made the card payment online via a link the dealer sent him. It's not just credit card payments. There is no where on this guy's generic car selling website where there is even a way to make a payment and the business is a 10x10 office space in Atlanta in a building that requires a card key to enter. This guy made it very hard to make any kind of payment.

 

Yes I've read it 

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3 hours ago, CreditSucksNot said:

Once he was in default the creditor/seller has that right and YES, being late with the payment is in default.

 

The "in person" requirement is the major downfall of buy here PAY HERE.  One reason why anyone contemplating using that purchase method should seriously look at the location in reference to where they live and convenience.

Unfortunately your friend has no defense.  His options are to pay the loan off or return the car.  There is no "out" legally on this one.

 

Actually a local lawyer here is saying that he doesn't have a right to send a demand letter and it probably won't be upheld in court if he pays this stealership the money to get current. The stealership is saying the only way to get current is to take the money to suntrust bank and have it deposited into their account. My friend has never heard of such a payment method and that's why he asked to see his dealer's license because it was questionable if he even has one.

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19 hours ago, TheChosenOne said:

So when the 2nd payment is due my friend figures this guy will get paid late.

 

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New development .... 

 

Scammy Nigerian dealer is saying he can't give my friend the title if he pays the balance in full in cash. He says he has to send away for it and my friend is supposed to just trust that he is going to send it to him. This is after he blocked his cell phone and other petty antics.

 

Can anyone help on how to protect him from getting royally screwed if he comes up with the money to pay it off?

 

Any help at all is greatly appreciated. 

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15 minutes ago, TheChosenOne said:

 

Try to focus on helping rather than trolling and you'll be more useful on these boards i bet...

Good tip.  May I use that one if I credit you?

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Is your state an ELT state?

Just so you know CV is not a troll.

Sent from my SM-N950U using Tapatalk on a beach far far away.

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14 minutes ago, MarvBear said:

Is your state an ELT state?

Just so you know CV is not a troll.

Sent from my SM-N950U using Tapatalk on a beach far far away.
 

It's Georgia so yep I believe it is.

 

I know he's not a troll. I believe the post he made wasn't meant to help the debtor, and if it wasn't meant to help then what was it meant for? That's what we're here for right? To help debtors and not the Nigerian scammers or should we nit pick at the debtors to try and find fault in any minor thing they might have done wrong like pay a payment late. 

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Georgia law requires lienholders and also BHPH dealers to use the ELT system.   If this dealer is a participant, your friend could take a cashiers check and sit there and watch him electronically release the lien, and print the appropriate documents.

 

AND

 

FYI I don't believe cv was nitpicking

but rather better trying to understand the situation.

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Something isn't adding up. Maybe its just me. If the vehicle seller does not have the title, how could the buyer put plates on the car? Maybe it's too much Live PD I've watched but something makes me wonder if this seller is fencing hot cars?

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4 hours ago, IndyPoolPlayer said:

Something isn't adding up. Maybe its just me. If the vehicle seller does not have the title, how could the buyer put plates on the car? Maybe it's too much Live PD I've watched but something makes me wonder if this seller is fencing hot cars?


He actually sent registration to him so I doubt it. I'm thinking they've both had words back and forth and the Nigerian just wants to try and screw him. Years ago I paid off a vehicle from a BHPH place and they gave me a receipt that it was paid off and never sent me the title. Complained to every consumer agency and legal authority I could find, nobody wanted to do anything. DMV never did release the electronic title. They kept saying it was on the BHPH to release it, the BHPH place kept saying it was the DMV. The car has been parked in my garage for years because if it totals out, they pay the title holder.

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5 hours ago, MarvBear said:

Georgia law requires lienholders and also BHPH dealers to use the ELT system.   If this dealer is a participant, your friend could take a cashiers check and sit there and watch him electronically release the lien, and print the appropriate documents.

 

AND

 

FYI I don't believe cv was nitpicking

but rather better trying to understand the situation.

 

Thanks for that info Marv. That's interesting I'll have to tell him he can ask to watch him release it.

 

CV seems cool. I'm probably a bit wary from personal attacks from the past when reaching out for advice. I do apologize.

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19 hours ago, TheChosenOne said:

 

Thanks for that info Marv. That's interesting I'll have to tell him he can ask to watch him release it.

 

CV seems cool. I'm probably a bit wary from personal attacks from the past when reaching out for advice. I do apologize.

I'd happily take a fresh look at anything you deemed to be a personal attack.  

 

Please paste the links in this thread and I will keep my eyes open for updates.

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On 12/29/2018 at 4:03 PM, cv91915 said:

I'd happily take a fresh look at anything you deemed to be a personal attack.  

 

Please paste the links in this thread and I will keep my eyes open for updates.

as long as you're not Nigerian...

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On 12/29/2018 at 7:03 PM, cv91915 said:

I'd happily take a fresh look at anything you deemed to be a personal attack.  

 

Please paste the links in this thread and I will keep my eyes open for updates.

 

I wasn't referencing a personal attack by you. I'm talking about on this board in general in recent past.

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15 hours ago, hegemony said:

as long as you're not Nigerian...

 

Seems like maybe some ppl on this site might be having some senility problems like focusing on topic. What does your Nigerian reference have to do with the situation in the thread? Why are you in this thread even?? So many of you are trying to stir the pot and only Marv brought any helpful information to the thread. That's interesting. Honestly, the site appears to be dying from that sort of attitude.

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