Legal Question in Civil Litigation in Virginia
Car Loan Default
Hello. Made a persoal loan to a man in 6-01 to purchase a car from me for $1,200 at $100 a month. Am listed the lein holder on the Title. He began defaulting on the loan in Dec 01. Hasn't made a payment since Jan 02. Sent Certified Ltr sating that legal action would be sought should he not pay the defaulted amount. He called today and will be bringing the car back this evening. Isn't he still responsible for the last five payments (Jan, Feb, Mar, Apr, & May) I told him that he wouldn't have to pay the interest (6% per each day late) accrued, IF he'd pay the $100 for each month past due. How should I write the contract up for him to sign? Or what should I do. He'll be here in three hours to return the car. HELP!!!!!!
1 Answer from Attorneys
Re: Car Loan Default
It's not clear(at least to me) whether you conveyed legal title to the buyer last June
or you retained the title(in your name), subject to the buyer's fullfillment of the purchase
agreement(assuming that there was one)whch, of
course, would entail his making all of the payments.
If the defaulter is the legal owner, you would
not be under any obligation to take the vehicle back and could sue him for the balance still owed. However, if he's a person of little or no means, a court judgment in your favor, might be of little value to you.
Therefore, the suggestion of making a new contract for the balance owed on the terms that
you have suggested would make sense, as a practical matter. (I would attempt to have him
give you at least a $100 upfront as a condition of signing the new contract.)
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