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

UPDATED: Apr 22, 2011

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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


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

Answered 11 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. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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