How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask LegalGems Your Own Question

LegalGems
LegalGems, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 3684
Experience:  Research Attorney; Private Practice; Attorney Mentor; Mediator
63726236
Type Your Consumer Protection Law Question Here...
LegalGems is online now
A new question is answered every 9 seconds

I have a repossession quesion. I defaulted on a loan with

Resolved Question:

I have a repossession quesion. I defaulted on a loan with my HVAC unit. The lender came and repossessed the unit but left the duct work that was installed. At the time the unit was repossessed, it was not working because it had been struck by lighting. I informed the lender that the unit was not working and I had put in a claim with the insurance company. The lender sent papers saying that the unit would be sold but found out that the unit was not in working condition. I went to his office and he told me that the ball was in my court and what did I want to do about the unit? He tried to contact the insurance company to get them to fix the unit and he was told that the claim has already been settled. He wanted to know was I planning on paying him and I told him yes, but I needed until the end of the month to bring him $1000 dollars. He also sent a letter saying the money from the insurance company belong to him. What are my options?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  LegalGems replied 1 year ago.

LegalGems :

Hi! LegalGems here. My goal: To Do My Best To Assist You. Please remember, I can only provide general information,as this is a public forum.

LegalGems :

Generally when a person defaults on a loan, the lender can sell the property and then seek a deficiency judgment - which means they can recover from the buyer the unpaid amount that was not recovered from the sale of the property.

Customer:

What about the money from the insurance company? Does that belong to him? He was not on the insurance as a lien holder. He can't sell it without fixing it. If I decide not to get the unit back and he can't sell it, what then?

LegalGems :

No, it would not belong to him in that respect - as a lien holder. But he can bring an action against you for the outstanding balance; if he sells it as is, he could bring an action against you for the difference between money received from the sale, and the outstanding balance on the loan (this would be the deficiency amount).

Customer:

I am not trying to get out of my obligation. However, this unit as I have been told by other HVAC repairmen, that if this unit was struck by lighting, the entire unit will need to be replaced. I did not find this out until after he had repossessed the unit. I have not cashed the check from the insurance company. I am in a bind, don't know what to do. What would be the best option? I know he can bring action against me for the balance but would he have to consider depreciation on the unit?

Customer:

I am not asking for expert advice; I just need some options to consider.

LegalGems :

I understand. No, he would not have to consider depreciation on the unit; legally he is entitled to the outstanding balance. He is not entitled to the value of the unit - it is the amount of the loan obligation that is the issue - this is the amount he would receive if he brought legal action and prevailed. So if the unit is worth, say $100, but the loan balance is $300, he would likely receive a judgment for $300.

Customer:

So if I am able to start paying on the loan and decide to pay it off early, I could probably save a lot of interest? These were some high interest rates and I probably would save more by paying off early and being done with this account? How long does it usually take for legal action to take place in court?

LegalGems :

Since you have a settlement check, you may want to offer a lump sum settlement, as then they will generally take less than the outstanding amount. People generally start with an offer of 50-60% of the outstanding balance and then go from there. But yes, if you could pay it off early - the outstanding amount- and save interest, that would be a win situation. Legal action usually takes place rather promptly because the plaintiff wants to get his/her money. There are statute of limitations, which is the legal time frame where the case must be filed, or it is barred. For written contracts, it is 3 years.

Customer:

I only received repair money for the unit, minus my deduction. This is only $1000, just enough to repair the unit, which I plan to fix the unit with. I will make an appointment to try and make arrangement to pay the account and try to pay off early.

LegalGems :

That would save money over the long term.

LegalGems, Lawyer
Satisfied Customers: 3684
Experience: Research Attorney; Private Practice; Attorney Mentor; Mediator
LegalGems and 10 other Consumer Protection Law Specialists are ready to help you
Expert:  LegalGems replied 1 year ago.
Thank you for using JA Pearl. Hopefully you will be able to negotiate favorable terms with the seller.

If you have future legal questions you can request me by putting TO LEGALGEMS in front of the question.

The site will be sending you a survey...I hope you are able to complete it indicating you are satisfied with the service I provided, as I strive for happy customers.

Thanks and take carr!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Infolawyer

    Lawyer

    Satisfied Customers:

    5518
    Licensed attorney helping individuals and businesses.
< Last | Next >
  • http://ww2.justanswer.com/uploads/NY/nyclawyer/2012-6-7_22011_photo66139201112041.64x64.jpg Infolawyer's Avatar

    Infolawyer

    Lawyer

    Satisfied Customers:

    5518
    Licensed attorney helping individuals and businesses.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    2620
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    1711
    20 years experience in consumer advocacy, debt collection violations, contracts, construction
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    1415
    16 years legal experience including consumer protection law.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Lawyer

    Satisfied Customers:

    1160
    25 years of private practice
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    1065
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    1023
    Attorney with 14 years experience in various consumer protection areas
 
 
 

Related Consumer Protection Law Questions

Chat Now With A Consumer Protection Lawyer
LegalGems
LegalGems
Consumer Protection Lawyer
3684 Satisfied Customers
Research Attorney; Private Practice; Attorney Mentor; Mediator