Car repo'd - Wants us to sign something?

[Neofree]

Lender says that their is a leinholder on our car and needs us to sign a power of attorney for them to sell the car?

What is this about and what do I do?

Thanks,

Neofree

[southernbelle]

DON'T SIGN ANYTHING!!! I'm sure someone else will answer this one, but in my limited experience, power of attorney gives them authority to act on your behalf and God only knows what that could mean in the end. In my opinion, don't sign anything until you talk to an atty because that sounds fishy to me. You don't want to find out the hard way that you still owe the difference on the car after the sale plus the repo.

Just my opinion.

[FreshLikeADaisy]

Neofree, I couldn't agree more. Don't sign a thing unless an atty that represents YOU tells you exactly what it means in real terms, and that it is in your best interest to do so. The lender IS the primary lienholder on the vehicle, so if there's some other lien on it, that's their problem, not yours after you have already surrendered it. Good luck!!!

[JRScott]

Don't sign power of attorney to them whatever you do. Power of attorney would give them pretty much power over all your finances etc. Generally only given by mentally incompetent adults to a mentally competent relative.

If you've retained a lawyer already for bk you might go and speak to him about this matter. Or tell them they should contact him. Sounds like a scam though.

[rfassett]

There are two types of Power of Attorneys (POA). There is the general all-encompassing type to which JRScott referrs. And then there are limited POA usually written for a specific purpose, such as the one described by Neofree. If you are not comfortable signing the POA (and I wouldn't either), then I would suggest they they send you the requisite document (probably the title) and you will affix your own notarized signature.

[Flamingo]

As the others stated, do not sign any documents (especially a Power of Attorney) for any sort of property transaction unless the document is reviewed by an attorney. What is going on here is simple; the title to the vehicle is in your name; the vehicle was repossessed for nonpayment under the contract of sale by the lienholder who has the title. The car cannot be sold at auction unless the title is signed by you since the title is in your name. The POA gives them the right to sign that title for you so they can sell the car. But it is the wording that may bein that POA that can hurt you if you sign it without review.

I don't know if you are in BK, getting ready to file or your financial situation but you need to have that document reviewed before signing OR arrange with them to go in and sign over the original title so they can sell the vehicle.

Also, there may be clauses in your Sales contract with them as to this "POA" situation in the event of repossession. You may want to pull out that paperwork and review it.

[southernbelle]

If in fact, this is just an issue of signing over the title so that they can sell it, why didn't they offer you that option? Power of Attorney seems a bit extreme if they only need you to sign the title over to them.

[Flamingo]

If in fact, this is just an issue of signing over the title so that they can sell it, why didn't they offer you that option? Power of Attorney seems a bit extreme if they only need you to sign the title over to them.

It's simple - they do not want to mail the original title for signature by the OP in fear of not getting it back, destroyed or in retaliation for the repossession (think along the lines of the creditor). Not all people who have vehicles repossessed are friendly and happy. The title may in a different state than the borrower so they are providing the POA instead. I'll bet there is some clause or wording as to that in the Sales Contract if the vehicle is repossessed and the steps that will be taken.

[Neofree]

The problem is I *seriously* have no way of hiring a lawyer. What happens if I don't sign it will they not be able to sell it?

[Flamingo]

Probably after a certain period of time passes, if you do not respond to their request, they can sell it. Pull out the sales contract and loan paperwork for the vehicle and review what is in there if you default on the loan. Steps should be listed as to what the lender can do if you default on the loan and are in breach of contract. Lenders protect themselves heavily in those contracts so you can be sure something is listed concerning all this.

[southernbelle]

It's simple - they do not want to mail the original title for signature by the OP in fear of not getting it back, destroyed or in retaliation for the repossession (think along the lines of the creditor). Not all people who have vehicles repossessed are friendly and happy. The title may in a different state than the borrower so they are providing the POA instead. I'll bet there is some clause or wording as to that in the Sales Contract if the vehicle is repossessed and the steps that will be taken.

Makes perfect sense. Thinking like the creditor helps me to understand this. Neo, if you can't afford a lawyer, I would take Flamingo's advice and read the original contract to see if there's anything in there regarding reposessions. Chances are, there will be, but another alternative would be to call a lawyer in your area to find out if they would give you a reduced rate or free consultation so you can get some advice.

I'll bet they have authority to sell the car if you don't respond after a certain period of time.

[FreshLikeADaisy]

Neofree, you've gotten some great advice above and a good explanation of what's going on -- the only thing I would add is, really, don't sweat it. Many people have cars repossesed and refuse to sign anything placed before them; it's not the end of the world. You have transferred the asset back to the lender; it really IS their problem now, signature or no signature. My impression is that, as prior posters have suggested, you'd simply be doing them a favor and speeding things up by signing. But the thing is, they love to attach obscurely worded provisions and clauses in these things that are *in addition to* the primary point of the document, which is what makes it so dangerous for you to sign.

Trust me when I say you won't be the first person they ever saw who refused to sign anything in regard to a repossession (other members of this board have also refused to sign anything during/after a vehicle repossession) and that the lender will indeed find a way around this and sell the car just fine. They may make you feel like a jackass for not signing, but my friend, feeling like a jackass is free. Signing that thing may not be.

Flamingo had a good point about their possible reluctance to send the actual title, but quite frankly, if that's their issue I personally would force it by refusing point blank to sign anything OTHER than the title. If it's really that important, they'll cough it up. If it's not, then they're stuck with the same Plan B they're stuck with now, nothing lost.

I understand what it is to be dead broke, need an attorney desperately, and just not be able to get one; that's why I really want you to know that signature or none, the worst has already happened, they took the car. Unless you are really comfortable with reading legalese, I would not suggest bending to their demand that you sign any additional document, and you should be just fine if you don't sign anything. I wish you good luck!!!

[Bell30656]

While each state is different; The reason they want you to do a limited power of attorney (which only grants them permission for this motor vehicle transaction) is that without it they have to treat this as a normal repossession, going through a notification period, then a bid sale (at which they will purchase the vehicle themselves for a ridiculously low amount), then court papers to title, etc. They like it so much more when you do a voluntary repossession and allow them to transfer title.

A used car dealer once gave my neighbor a $100 bill to sign off on the title and the limited power of attorney... seems they wanted to resell it right away may have had a buyer in the wings that wouldn't wait that long.

[southernbelle]

The Power Of Attorney you will presented with should be an official document from your states department of licensing or motor vehicles. It will have to be notarized and is limited to only the vehicle transfer. It allows the lender to act on your behalf to sign and transfer the vehicle to another party. If your not sure...just have them mail it out to you and run it by your attorney or stop into a dept of licensing or motor vehicles and ask them about it. Its very common and not a big deal.

The document would look like this.... and it talks about a power of attorney.

http://www.dol.wa.gov/forms/420050.pdf

Nice find. I was curious about that one myself.

[nomoneynomore]

As I read this post, it brings up a question of my own. We had a vehicle repossesed last summer due to non-payment of a loan (the loan was not for the pickup, rather the pickup was only collertial for the loan) They did have a lein on the title. We NEVER signed anything releasing the title to the bank. Does anyone think there is anything we can do about this? Do they HAVE to have your signature to sell the vehicle?

Thx!