Underwater loan

northmeck0255 wrote:

bigdogger wrote:

timmac wrote:


Also don't feel bad about giving it back to the bank, that's the risk they take and they know this.

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.
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.

Corporations do this all the time. Are they also "deadbeats"????

A corporation that did that would absolutely be a deadbeat. However, please cite an example of where a corporation that has the ability to pay just doesn't. Corporations make bad decisions all the time, and they lose copious amounts of money on them. But they don't go around stiffing the people that loaned them the money. When companies default on loans it is because they don't have the money to pay. It is a really big deal for a corporation to default on their obligations, so they don't unless they are broke.
There is a big difference between defaulting because you cannot pay and defaulting because you don't want to pay. The first is legitimate and unavoidable. The second is just being a deadbeat.