repo deficiency question

[jsk]

I've seen mention here of the 60% rule regarding repo deficiencies. Is that 60% of the purchase price, or 60% of the starting loan amount? If a car is purchased for $30,000 with a $6,000 down payment and then repo'd, does the down payment count toward the 60% or not? Thanks.

[Why Chat]

I've seen mention here of the 60% rule regarding repo deficiencies. Is that 60% of the purchase price, or 60% of the starting loan amount? If a car is purchased for $30,000 with a $6,000 down payment and then repo'd, does the down payment count toward the 60% or not? Thanks.

<{POST_SNAPBACK}>

The 60% rule, in those States that have it,(some have it at 50%, some don't have it at all), is determined by subtracting the PAYOFF figure at the time of repo from the purchase price, if the payoff is less than 40% of the original purchase price than the 60% rule applies.

 

Remember, the payoff figure is NOT the same as the loan balance, it is the amount that is shown in your REQUIRED accounting of the proceeds of the sale that establishes your deficiency.

[latinagirl]

How would I be able to know which states have the 60% rule? Where can I find that information. I live in Washington State.

 

 

As of yesterday, the OC received the deficiency letter. I an eagerly awaiting the 14 days for them to respond. I will keeop everyone posted with the outcome.

 

Thanks

[Why Chat]

How would I be able to know which states have the 60% rule?    Where can I find that information.  I live in Washington State.

 

 

As of yesterday, the OC received the deficiency letter.  I an eagerly awaiting the 14 days for them to respond.  I will keeop everyone posted with the outcome. 

 

Thanks

<{POST_SNAPBACK}>

I THINK Wash. has the "60% rule" in it's UCC statutes, as there is a "private sale" exemption available if it is over 60%.

 

b. Retention of Collateral in Satisfaction of Debt, (also known as “strict

foreclosure”).

(1) This remedy allows the lender who has obtained possession of the collateral

(by self-help or claim and delivery) to retain the collateral hi satisfaction of the outstanding debt.

ORS 79.5050; RCW 62A.9-505.

However, the lender may not use this remedy where the

collateral is consumer goods and the debtor has paid more than 60 percent of the cash price(PMSI) or 60 percent of the loan (for other security interest) unless the debtor, after default,signed a statement renouncing or modifying the debtor’s rights.

[jsk]

What about New York -- 60% rule in effect there?

[latinagirl]

WhyChat, your the GREATEST!!!!!

 

I never signed a renouncing or modifying the debtor’s rights. I am feeling better and better with the repo deficiency letter I sent off.

[jsk]

Bump to ask again if the 60% rule is in effect in New York and any details thereof, if available. Thanks very much.

[Darlene]

WhyChat~

 

I have a Repo on EQ and TU (somehow managed deletion from EX) with

Household Auto Finance...

 

It shows Balance $0 Charged off as Bad Debt and it was in 2001.

 

I am considering the Repo Deficiency Letter but worried if I am still within SOL in FL. They have not tried to sue me... I want it deleted but worried I should not wake a sleeping giant if I am still within SOL and I think I am (5yrs???)

 

Original Balance was 21292 and sale was @ 14k trying to find all my information.

 

Any thoughts?

Edited June 9, 2005 by Darlene

[Why Chat]

WhyChat~

 

I have a Repo on EQ and TU (somehow managed deletion from EX) with

Household Auto Finance...

 

It shows Balance $0 Charged off as Bad Debt and it was in 2001.

 

I am considering the Repo Deficiency Letter but worried if I am still within SOL in FL.  They have not tried to sue me... I want it deleted but worried I should not wake a sleeping giant if I am still within SOL and I think I am (5yrs???)

 

Original Balance was 21292 and sale was @ 14k trying to find all my information.

 

Any thoughts?

<{POST_SNAPBACK}>

The SOL on a repo deficiency IF it was done properly is 4 years from the date of resale. An installment loan contract may be 5 years from default date, however the original installment loan was VOIDED by the repo.

 

Of course if the repo and resale were not done properly --there IS no deficiency.

 

As to the prior poster's question on NY 60%, I don't know the answer. you can try to look it up yourself under the NY UCC or MVRISA statutes, but looking up NY statutes is VERY time consuming.

[Darlene]

Thanks Why Chat that helps a lot!