Florida Repo With a Deficiency Balance
Vehicle was repossessed a few weeks ago, and sold at private auction. Vehicle sold for about 2/3rd's of it's fair market value, according to KBB Private Party value, which is supposed to accurately calculate the IRS fair market value on vehicles. The Florida Attorney General's webpage indicates :
"Any resale needs to be conducted in a "commercially reasonable manner." For example, a resale price which is below FMV may be unreasonable. If this occurs, you may have a claim against the creditor for damages, or a defense against a defiency judgment."
The balance was bought by a collector. The balance due is around $9K. They offered me a settlement amount in the $6K range for a single payment, which isn't feasible. They first contacted me today at work and wanted a settlement in place tonight because tomorrow is the end of the month. The entire conversation was cordial. They called me on my work cell number, which I had repeatedly told the lienholder was not to be used to contact me. The collector advised they would make note of this and I gave them my current home number.
The alternative is an 18-month payment plan, and they advise there will likely be a lump sum interest payment of 25-28% due after those 18 months. I could not locate my contract to see if this APR is defined in the contract if repossessed. Attempted to contact the lienholder repo department but had to leave a message.
I've left a message with a friend's attorney and hope to know all my options. I called the collector back a few minutes ago and advised I felt rushed and didn't feel I knew all the legal ramifications regarding the options they gave me. They understood and asked me to call back by lunch tomorrow, and hopefully I'll have an 'official' legal suggestion by then.
How much below FMV would be considered unreasonable? What is my time frame for setting up this settlement plan? Other constructive suggestions?
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Re: Florida Repo With a Deficiency Dalance
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