Am I still liable for the balance after the bank sold my repossessed trailer? 5 Answers as of November 25, 2013

I had a travel trailer repossessed. I was behind 4 months, in the amount of $678.00. I had been paying for this trailer for 8 years, and didn't have any problems until then, and this was due to a slow down at my job. I was working with the loss mitigation department from the same bank, trying to get the situation solved, when they picked the trailer up. They sold it at auction, and got $4,000.00 for it. I still owed $7,000.00, so now they say I owe them the remainder of the $7,000.00. Since I was trying to get caught up on my payments, through their own company, am I still liable for the $3,000.00? The loss mitigation department never communicated the fact that I was trying to get caught up with the loan department, and I didn't know that I should have. Do I have a leg to stand on if they take me to court?

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Gottlieb & Goren, P.C.
Gottlieb & Goren, P.C. | Aaron W. Goren
You have a defense to the claim for the deficiency balance if you can show that the sale was not conducted in a commercially reasonable manner. Was the trailer sold for less than its value, according to a reliable expert?
Answer Applies to: Michigan
Replied: 11/25/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You are completely liable for the difference but you can get rid of it in bankruptcy.
Answer Applies to: New York
Replied: 11/25/2013
Davis Law SC | D. Nathan Davis
Unfortunately, a bank can usually do exactly what it is doing. The bank seizes the property, sells it usually had a wholesale price and demands the difference from you. Unless you believe that the mitigation department was somehow misleading you, you are stuck with the deficiency. A deficiency claim after repossession of a car, boat, trailer or home often results in a deficiency amount for which the borrower is liable. You should consult an attorney with lots of information about the discussions with the mitigation department to see if you may have a defense to the claim for deficiency. Although I have told you what the general rule is in these matters, you may have defenses or causes of action to the deficiency claim in your particular case.
Answer Applies to: South Carolina
Replied: 11/22/2013
Scott Goldstein | Scott Goldstein
You are still liable. You might be able to argue that they did not sell it in a commercially reasonable manner, but that's about it.
Answer Applies to: New Jersey
Replied: 11/22/2013
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
You need to have an attorney review the facts and the notices you received; the answer depends on whether the bank misled you into believing you would have time to catch up and whether the sale and notices were proper.
Answer Applies to: Illinois
Replied: 11/21/2013
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