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
timmac wrote:No!!! Actually, that is not a risk they take. They came to the bank to borrow money to buy an RV and they agreed to pay it back. The credit risk the bank took was if the customer somehow became UNABLE to pay it back or the bank makes a bad credit decision based on the customer's character.
Also don't feel bad about giving it back to the bank, that's the risk they take and they know this.
Just not wanting to pay it back is not a legitimate reason to default. We would seek a judgment and pursue repayment of every penny plus any and all fees if we found a customer who decided not to pay only out of convenience. It is totally unfair to our stockholders, our depositors, and our other loan clients to allow people to just not pay because they don't want to. People who allow foreclosures and repossessions when they have the ability to pay only because they suddenly don't like the decision they made of their own free will are nothing but deadbeats. Thankfully this person realizes their obligations and have indicated they have no desire to do anything like that. I agree with some of the other posters that they should look into borrowing the difference between the sale price and the amount owed. It appears they have a reasonably valuable rig, so even if they only get half of the loan balance, it is easier to pay $50,000 than it is to pay $100,000 when they are getting no value from having the rig.
