52.5k views
3 votes
What are the procedures for foreclosing a chattel mortgage in an installment sale of personal property due to default of the buyer of two or more payments?

1 Answer

7 votes

Final answer:

To foreclose a chattel mortgage in an installment sale of personal property due to default of two or more payments, the creditor follows certain procedures including sending a demand letter, repossessing the property, and selling it at a public auction.

Step-by-step explanation:

In an installment sale of personal property, a chattel mortgage is a type of security interest that allows a creditor to take possession of the property if the buyer defaults on their payments. To foreclose a chattel mortgage due to default of two or more payments, the creditor typically follows a set of procedures. These may include sending a demand letter to the buyer, repossessing the property, selling the property at a public auction, and applying the proceeds to the outstanding debt.

User Daf De Giraf
by
8.2k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories