Can a secured creditor remedy with repossession and then come back and still try to claim for item later? Mobil home was removed, and they still want more money from estate.
In the context of secured debt, such as a loan for a mobile home, a creditor's right to repossess the collateral (in this case, the mobile home) and then seek additional payment from the debtor or their estate depends on several factors. 1. Deficiency Judgment: After repossessing and selling the collateral, if the sale proceeds are insufficient to cover the outstanding balance of the debt, the creditor may seek a deficiency judgment. This judgment allows the creditor to recover the remaining debt from the debtor or their estate. 2. State Laws: The ability of a creditor to seek a deficiency judgment varies by state law. Some states have specific regulations or restrictions regarding deficiency judgments, especially for certain types of property like mobile homes. 3. Loan Agreement Terms: The terms of the loan agreement may have specific provisions regarding repossession and deficiency judgments. It's important to review the contract to understand the rights and obligations of both the creditor and the debtor. 4. Estate's Liability: In the context of an estate, the estate is generally responsible for the deceased's debts to the extent of its value. If the estate has sufficient assets, the creditor can claim the remaining balance of the debt. However, if the estate is insolvent, the creditor may not be able to recover the full amount owed. 5. Fair Market Value Consideration: When repossessing and selling the collateral, the creditor is typically required to sell it for a fair market value. If the sale price is substantially lower than the fair market value, there might be grounds to challenge the deficiency amount. 6. Notice Requirements: Creditors are usually required to provide notice to the debtor about the repossession and sale of the collateral, as well as the intention to seek a deficiency judgment. Given these considerations, it's crucial to review the specific circumstances of the case, including the loan agreement, state laws, and the details of the repossession and sale process. Hope this helps.
Does furniture and clothes go on the probate inventory list if I am I an independent administrator?
Can a secured creditor remedy with repossession and then come back and still try to claim for item later? Mobil home was removed, and they still want more money from estate.
In the context of secured debt, such as a loan for a mobile home, a creditor's right to repossess the collateral (in this case, the mobile home) and then seek additional payment from the debtor or their estate depends on several factors.
1. Deficiency Judgment: After repossessing and selling the collateral, if the sale proceeds are insufficient to cover the outstanding balance of the debt, the creditor may seek a deficiency judgment. This judgment allows the creditor to recover the remaining debt from the debtor or their estate.
2. State Laws: The ability of a creditor to seek a deficiency judgment varies by state law. Some states have specific regulations or restrictions regarding deficiency judgments, especially for certain types of property like mobile homes.
3. Loan Agreement Terms: The terms of the loan agreement may have specific provisions regarding repossession and deficiency judgments. It's important to review the contract to understand the rights and obligations of both the creditor and the debtor.
4. Estate's Liability: In the context of an estate, the estate is generally responsible for the deceased's debts to the extent of its value. If the estate has sufficient assets, the creditor can claim the remaining balance of the debt. However, if the estate is insolvent, the creditor may not be able to recover the full amount owed.
5. Fair Market Value Consideration: When repossessing and selling the collateral, the creditor is typically required to sell it for a fair market value. If the sale price is substantially lower than the fair market value, there might be grounds to challenge the deficiency amount.
6. Notice Requirements: Creditors are usually required to provide notice to the debtor about the repossession and sale of the collateral, as well as the intention to seek a deficiency judgment.
Given these considerations, it's crucial to review the specific circumstances of the case, including the loan agreement, state laws, and the details of the repossession and sale process. Hope this helps.