Legal Question in Real Estate Law in Texas

Auto Loan between Individuals

I sold a vehicle to another individual who has made many late payments, missed several payments and bounced checks. (I am carrying the note). The most recent check has not been paid. I have retained title to this car. Although the car has excessive wear and tear, I would prefer to just repossess the car and send a demand letter offering 30 days for her to obtain financing or the car will be sold. The loan has 16 more payments on it (originally 42) and if you count the missed payments - is 3 payments behind. My understanding is that since I hold title to the vehicle and she is not making payments according to the signed amortization schedule, I can legally repossess. Is this information accurate and what will I need to do? (I have a key.)


Asked on 5/01/03, 8:06 pm

1 Answer from Attorneys
Basil Hoyl Law office of Basil Hoyl

Re: Auto Loan between Individuals

You wrote that you carry the note. Was there actually a note drawn with a security instrument? If so, carefully read the terms of the written agreement between the two of you. If you do not have a written security agreement, carefully reveiw article Nine of the UCC (Texas Business and Commerce Code) which is part of the Texas Statutes. It is better if you have all the paperwork is established when you make the sale. If you have not done so, you may wish to speak with a lawyer close to you.

http://www.reasonable-doubt.com

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Answered on 5/01/03, 10:31 pm


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