In Texas, creditors can’t stockpile repoed cars. The financier does not own the repoed car, but merely has a security interest that allows them to take possession of the car and sell it in a commercially reasonable manner.
Are there states where the financier just keeps the car, and has good title to it? In the absence of a commercially reasonable sale, I do not see how it may be determined if the buyer still owes the financier, because the car is worth less than the loan balance, or if the financier owes the buyer, because the car was worth more than the loan balance and cost of repo. (It happens — but not often.)
[In Texas, creditors can’t stockpile repoed cars. The financier does not own the repoed car, but merely has a security interest that allows them to take possession of the car and sell it in a commercially reasonable manner.
Are there states where the financier just keeps the car, and has good title to it? In the absence of a commercially reasonable sale, I do not see how it may be determined if the buyer still owes the financier, because the car is worth less than the loan balance, or if the financier owes the buyer, because the car was worth more than the loan balance and cost of repo. (It happens — but not often.) ]