How can voluntary repossession in one state affect personal property in that and other states?

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How can voluntary repossession in one state affect personal property in that and other states?

My mother owes about $12,000 on a trailer worth about $8,500. The trailer is financed by a credit union in FL. She bought a house in AZ and lives there. She still owns a house in FL that she rents to my sister. She has Alzheimer’s and is no longer camping. If I take the trailer to FL for a voluntary repossession, how could that affect her properties in FL and AZ? What is the best way this should be handled? Should I see if the bank would accept a lower payoff and let me sell the camper?

Asked on April 22, 2011 under Bankruptcy Law, Arizona

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I am so sorry for your situation.  First, has someone been appointed as conservator or guardian for your Mother?  Someone needs to be something in order to act in a legal capacity and on her behalf to negotiate with the lender and see what you can do.  You may be able to negotiate a payoff amount that is lower than the loan but they do not have to do that and they might not given that there are other assets they can go after if they try and get a judgement against her.  Be careful about a deficiency judgement - which is if you sell the trailer for less than the loan pay off - and make sure it is waived by the bank when you are negotiating.  I might also speak with an estate planner a soon as you can.  Good luck. 


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