Underwater loan
I'm really red faced to even ask but if anyone has any ideas I'd be happy to hear. Like many seniors we bought a new Class A when retiring. Things were good back in 2001and we were full timing. Put a ...
Forum Discussion
RVUSA wrote:lj2654 wrote:
If you do call and tell the bank or credit union to come get it...be prepared. They will do just that, and then will auction it off to the highest bidder, add fee's on what is left and set up a monthly payment for you till its paid.
It still messes up credit. I had a 1998 class "C" that I had $500 payments on...had a family situation and had to settle down from full timing rather quickly. I owed like $50K still and tried to sell myself for 8 months.
Didn't get a buyer so had bank take it...I couldn't continue monthly payment. Ended up with a $150 monthly debt still owing $10000 on it....finally refinanced my home after a couple of years and settled it at a lower amount! Good Luck!
If the bank takes it and sells it, usually for far less than it's actual worth which is usually far less than what you owe on it, they will file 10-something C form with the IRS. It will declare what the balance was left on the rv after the sale, and the IRS will happily bill you for the taxes on that amount. They consider it earned income because the bank forgave that balance.
Forgot to add: you could consider selling it as "owner financed". And sometimes the bank will allow a take over of payments depending on the credit rating of the buyer.
Really good to hear about the Good Sam option.
That's only if the bank forgives the balance. They have to in most states on home mortgages, but not on vehicle loans.
